Indian Renewable Energy Development Agency Limited (IREDA) Stock - Complete Technical Analysis - Oct 15, 2024

Technical Analysis of IREDA Stock: Key Levels and Trends You Need to Know

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Today, Indian Renewable Energy Development Agency Limited (IREDA) stock is trading at 222.68, showing signs of market indecision with the recent formation of a Doji and Spinning Top candlestick patterns. The stock is 28.17% below its 52-week high of 310.0 and 345.36% above its 52-week low of 50.0, indicating a significant recovery in price.

The current P/E ratio of 41.4 suggests that the stock may be overvalued compared to its earnings, while the Book Value of 34.7 indicates potential for price appreciation if the company's fundamentals improve. The stock's ROCE of 9.30% and ROE of 17.3% highlight moderate efficiency in generating returns for investors.

Technical indicators reveal a mixed outlook. The MACD is currently negative, suggesting bearish momentum, while the RSI is nearing the neutral zone, indicating potential for a reversal. The ADX shows a weak trend, currently at 24.29, indicating that the market may remain range-bound in the near term.

In terms of support and resistance, immediate support is identified around 220, while resistance is at 231. Recent price action reveals volatility with sudden drops, particularly from 238.0 to 222.68 within a week, highlighting market sensitivity. The ATR indicates the stock is experiencing moderate volatility, which traders should monitor for potential price reversals.

Overall, traders should watch for a potential breakout above 231 to confirm bullish sentiment or a drop below 220 to signal further declines. The presence of indecisive candlestick patterns suggests caution, and traders may benefit from waiting for clearer directional signals before taking significant positions.