Shares of India Renewable Energy Development Agency (IREDA) fell 5% to the day’s low of Rs 179.60 on Friday, recording their third successive loss and extending losses to as much as 14% during this period.

The stock has been on a course correction since hitting its all-time high of Rs 214.80 on the NSE on Tuesday, February 6. Today’s price action was accompanied by strong volume action with more than 27.39 lakh shares changing hands around 11:20 am.

Notwithstanding the recent correction, the stock’s returns since its listing on November 29, 2023, are nearly 200%. The stock has rallied for six straight sessions until the move finally halted on Wednesday.

IREDA is trading above its 50-day simple moving average (SMA) and momentum indicator data on MFI, shows Trendlyne data which puts it in a strongly overbought zone at 80.

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Meanwhile, RSI is hovering near the 70 mark. A number above 70 for both these indicators implies that the stock is trading in an overbought zone while below 30 suggests that the trade is in an oversold zone.Analyst Aamar Deo Singh, Senior Vice President-Equity, Commodity & Currency at Angel One has recommended a cautious approach for investors who are planning to enter the stock at current levels. The stock has run up too far and too fast, he reasoned.While calling its returns “superior” since the initial public offering (IPO) issue price of Rs 32 per share, Deo said that the stock has proven to be a multibagger.

Overall the uptrend remains intact, the Angel One analyst said, adding that crucial support for the stock is seen around the Rs 165-170 zone. He sees resistance around the Rs 235-245 levels.

Meanwhile, fundamental analyst Kranthi Bathini, Director-Equity Strategy at WealthMills Securities called for booking of partial profits. He recommended investors to withdraw their capital. He. however, remains optimistic about the prospects of the company and the sector considering the government’s focus on green energy.

The NBFC company delivered stellar quarterly earnings, witnessing a 67% jump in the December quarter net profit at Rs 335.53 crore versus Rs 200.74 crore in the year-ago period. Against the July-September quarter net profit of Rs 284.73 crore, the growth was nearly 18%.

Total income for the reporting quarter stood at Rs 1,253.19 crore versus Rs 1,177 crore in Q2FY24 and Rs 869 crore in Q3FY23. It was up 6.4% QoQ and 44% on a YoY basis.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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