Top Buzzing stock: IRCTC

The stock has surged over 3% today despite the overall bad sentiment of the market.

Indian Railway Catering and Tourism Corporation is engaged in Catering and Hospitality, Internet Ticketing, Travel and Tourism, and Packaged Drinking Water (Rail Neer). It has a monopolistic business model and a market capitalization of Rs 71488 crore. The company is fundamentally sound and has reported growing revenue and net profits annually.

Over two-thirds of the company’s stake is held by the promotors, which includes the Government of India. The institutions hold about 12% of the stake while the rest is held by HNIs and the public.

The stock has surged over 3% today despite the overall bad sentiment of the market. It has recorded above-average volume in the initial hour which is greater than the 10-day and 30-day average volume. It was silent for the past few days and was trading in a narrow range of Rs 869-888.

However, with today’s strong price action, the stock has recorded the day’s high at RS 904 and continues to trade near it. It trades above all the short-term and long-term moving averages. These moving averages are rising upwards, which suggests a strong uptrend of the stock. Moreover, RSI has shifted its range to the bullish zone, while the MACD histogram is rising, which suggests more potential for upside. Along with this, the Elder Impulse System has given a fresh buy signal. Interestingly, the stock has also taken out the 38.2% Fibonacci retracement level. The stock has the potential to claim the levels of 960-1000 In short to medium, as per the technical indicators.

With such a strong breakout, the stock is expected to continue the momentum on the higher side for a few more days. Furthermore, the stock performed exceptionally well last year, having delivered over 200% returns to its shareholders, despite making volatile moves. Thus, it has a lot to offer for traders as well as long-term players.