IRCTC tanks nearly 50 per cent from record high. Should you buy
Published On: Wednesday, October 20, 2021 | By: Team KnowMyStock
Indian Railway Catering & Tourism Corp (IRCTC) stock tanked nearly 50 percent in two days after touching a record high of Rs 6396 on account of profit booking. It declined 18 percent to hit an intraday low of Rs 4371.25 on the Bombay Stock ExchangeThe market capitalization of the Indian Railway Catering and Tourism Corporation has declined to Rs 69,936 crore in intra-day trade today. It touched Rs 1.02 lakh crore in intra-day trade on Tuesday and has been included among nine stocks/securities under futures and options (F&O) ban for trade by the National Stock Exchange (NSE) on Wednesday, October 20, 2021. On this speculation, investors started squaring up their positions and booked profits in the stock. In the past six months, the market price of IRCTC has appreciated by nearly 300 percent from the level of Rs 1,612, as compared to a 30 percent rally in the S&P BSE Sensex during the same period till yesterday.
"The internet ticketing segment which contributes around 53 per cent of revenue is likely to increase in Q2 and upcoming quarters on the back of unlocking of economy and festival season. Easing of travel restrictions by almost all states is very positive for the company as new trains will start and this will benefit all segments especially the catering segment which contributes around 27 percent revenue," Akhil Rathi, Vice President Advisory at Marwadi Shares and Finance Limited told BusinessToday.In.
The technical analyst believes IRCTC's stock is not a good buy yet and pointed out that Rs 4,000 is the support level for the stock and one could buy the stock when it falls to those levels."The stock is likely to be under pressure in the upcoming weeks due to a strong run-up and this will be an opportunity for investors to accumulate the stock for the long term," he added.
Tags: IRCTC profit booking ban under F&O
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