While this week the market took a sharp U-turn towards the south, investors were seen taking a keen interest in shares of IFCI Ltd. (NS:). It is a small-cap company with a market capitalization of INR 5,041 crore and caters to the financial needs of the industrial sector.
The stock was in its own league this week and on the back of high investors’ demand, it jumped 37% to INR 23.05 which is the highest weekly closing in over 5 years. It started participating in the broader market rally in the small-cap space back in April 2023 and since then it has gradually been increasing.
Image Description: Weekly chart of IFCI with volume bars at the bottom
Image Source: Investing.com
This recent weekly surge was witnessed by a weekly volume figure of 549.5 million shares. To put it in perspective, that is the highest number since January 2007. This is the kind of buying interest that is triggering the ongoing mind-boggling rally.
Now what from here? The stock has risen sharply and it seems too high to make fresh long positions. However, traders can keep the counter on the watchlist and wait for a retracement to around the breakout level of INR 18 – INR 19. This level would probably be a good one for bulls to participate in the rally.
The trend is strongly positive and we might see the level of INR 32 in a short span of time.
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