IRCTC surges over 12 per cent; gives trendline breakout

On Friday, the stock Indian Railway Catering & Tourism Corporation Limited has surged over 12 per cent and marked an intraday high of Rs 1,597. Technically, the stock has given a downward sloping trendline breakout on the daily timeframe formed by connecting swing highs since June 2020. This breakout is confirmed by robust volume.

At 12.49 pm today, the volume witnessed was above 66.59 lakh. The 50-day average volume was 4.24 lakh. This indicates a strong buying interest from the market participants.

Additionally, the stock had formed an opening bullish Marubozu candle on Friday, which adds strength to the breakout. The opening bullish Marubozu candle has no shadow extending from the opening price end of the body. Opening a bullish Marubozu candle indicates extreme bullishness.

The major trend of the stock is positive as it is trading above its weekly pivot and short and long-term moving averages and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The leading indicator i.e. the 14-period daily RSI is in a bullish trajectory and rising move, which is a bullish sign.

Going ahead, we expect the bias to remain positive as long as the stock sustains above the zone of Rs 1,375-Rs 1,360 as it is the confluence of 20-day EMA and 50-day EMA level. On the higher side, the zone of Rs 1,800-Rs 1,820 would be seen as the next resistance zone for the stock.

At 12.50 pm today, its share was trading 12.60 per cent higher at Rs 1,550. It recorded an intraday high of Rs 1,597 and an intraday low of Rs 1,382 on NSE.