IRCTC share price may go up to Rs 2174; experts unveil important levels that one can't afford to miss

IRCTC Share Price: For the last two weeks, the Indian Railway Catering and Tourism Corporation (IRCTC) share price has been oscillating in the range of Rs 1,700 to Rs 1,775. But, this range-bound trade in the IRCTC stock is taking place after this Indian Railways unit's stock rose over 10 per cent in the last month. According to stock market experts, IRCTC shares have strong support at Rs 1700 and in the long-term perspective, it may go up to Rs 2174 levels.

Elaborating upon the IRCTC share price target Chandan Taparia, Derivatives & Technical Analyst - Motilal Oswal says that IRCTC sees major support near Rs 1700, which is also near to its 50 Days Exponential Moving Average or DEMA. After the decline of the last 14 days, a hold above Rs 1775 is required for a move towards Rs 1875 to Rs 1900.

Speaking on the major levels in regard to IRCTC share price Nilesh Jain, Assistant Vice President (AVP) — Equity Research Technical and Derivatives at Centrum Broking said, "IRCTC has immediate support at Rs 1700. Bounce is expected till Rs 1800 and above that it can move towards Rs 1870."

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On the long-term target of IRCTC stock price IIFL Securities has initiated coverage on IRCTC with target price of Rs 2174 and a BUY rating. IRCTC is a play on the normalisation of activity post Covid, and they estimate fast growth driven by:

1) Accelerated adoption of online ticketing;

2) Conversion of unreserved coaches to 2S class;

3) Increase in capacity in the PDW (packaged drinking water) segment; and

4) Resumption of private trains.

The near-term risk for the IRCTC share price is the rising COVID-19 cases and a delay in recovery; but IRCTC’s low fixed-cost model and healthy net-cash position lend comfort.