The PSU counter came under pressure last week after it was placed under the F&O ban list by National Stock Exchange (NSE) on Wednesday, October 20. While the stock was out of the list for today, analysts believe that short traders are trying to drag it more so that weak longs get out of the game.
NSE is mandated to put any stock where the market-wide position limit (MWPL) crosses 95 per cent under a temporary F&O ban till the positions in the contract come below 80 per cent.
NSE said the derivative contracts in the mentioned securities have crossed 95 per cent of the market-wide position limit and have, therefore, been put under the ban.
Rs 4,000-3,700 is a strong demand zone for IRCTC where one can expect some relief rally but 20-DMA, which is currently placed at Rs 4,500, will act as an immediate hurdle, said Santosh Meena, Head of Research at Swastika Investmart. The long-term outlook is still bullish and investors can use the current dip as a buying opportunity, he added.
Listed in October 2019, shares of IRCTC have soared as much as 1,900 per cent in just two years. The shares of the company were issued at Rs 320 per share in its initial stake sale and the scrip had listed at Rs 644.
Rahul Sharma, Co-Founder, Equity99 said while the scrip is on a corrective mode, it can hit Rs 5,500 in the medium-term, riding on its debt-free and monopolistic nature of business.
