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Monday
July, 15

Unlocking IRCTC’s Potential: Will the Sleeping Giant Finally Wake?

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In today’s article, I will look at three stocks, which are IRCTC (NS:), Adani Ports, and Kotak Mahindra Bank (NS:). However, within the article, I will only examine IRCTC. While for the other two, I have attached a YouTube video analyzing them.

Now coming to IRCTC. Equity has been the darling of fundamental investors and social media. This is because the company has a commanding presence in the Indian railway market and has been performing rather well on the financial front. However, the stock’s strong foundation hasn’t translated into impressive price growth yet. Thus, the big question is: when will the stock break out from the current price stagnation?

Hence, to answer this question, we must look at the technicals of the stock. Now, since December 2022, the equity has been a pain for investors as it has stayed within a narrow range of 12%. However, I look at this as a positive. This is because the sideways move made the equity form a sturdy base as it scared away novice investors. Moreover, my bullishness is furthered by my proprietary volume breakdown indicator.

This is because it turned bullish three weeks ago, which resulted in the MAs providing excellent support to the price. Furthermore, for the past three weeks, the bullish element in the volume has been rising steadily as time goes by. This is a huge positive and does indicate that the sideways run is coming very close to an end.

On the resistance front, the key level I will be monitoring on the upside is Rs. 686. This is as if the stock were to successfully take out this resistance zone in the weekly chart. Then it would open up the stock to my next quant resistance levels at Rs. 740 and Rs. 790.

Now when it comes to how I will personally trade the stock, I will look at it via two different scenarios. The first scenario is pretty simple, as it consists of a pullback to the range of Rs. 635 to Rs. 638. The drop in the stock price would be a good opportunity to consider the stock. This is because it will get rid of investors who are not confident in the equity, which will help it further in the future.

Thus, if this were to happen, I would invest in the stock with some funds at first. Then, I would add more funds as the stock broke through the resistance levels highlighted above. While the second scenario will be the more patient one. I say this because, on the flip side if the stock were to avoid a pullback and stay as is. Then I would wait for the equity to take out the first resistance at Rs. 686 and then add the stock gradually as it progresses.

To encapsulate, IRCTC seems to be finally gearing up for action. However, the timing of its awakening is the central question. My anticipation leans towards the first scenario gaining traction. Hence, should the stock fall into the highlighted range, then it will certainly merit an entry by me. Lastly, as a parting note, do not forget to watch the YouTube video highlighted below. Where I delve into the price action of Kotak Mahindra Bank and Adani Ports for the weeks ahead.

Also, after watching the video below you can check out my last two articles and see how well the analysis is doing:

Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Thus, you must trust your analysis and judgment before making investment decisions. The report provided is for informational purposes only and should not be interpreted as a proposition to buy or sell any securities.



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