IREDA Stock Correction: 53% Fall from Record High Brings RSI into Oversold Zone

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) have come under heavy selling pressure, falling 53% from their all-time high of ₹310 recorded in July 2024. With this sharp correction, the stock has entered the oversold territory, as indicated by its Relative Strength Index (RSI) which currently stands at 26.6. An RSI below 30 is typically seen as a signal that a stock is oversold and may be due for a rebound. Despite the recent dip, the stock gained over 4% in today’s trading session, hinting at possible short-term support and investor interest at lower levels.

IREDA Stock Falls Sharply, RSI Indicates Oversold Conditions

RSI Signals Possible Reversal Zone

The recent 53% fall in IREDA stock has pulled its RSI down to 26.6, clearly reflecting oversold market conditions. In technical analysis, an RSI below 30 typically indicates that a stock is undervalued or oversold, suggesting a potential buying opportunity for investors.

Recent Trading Performance

Despite the downtrend, IREDA stock gained 4.12% today, closing at ₹143.85 on the BSE. The market capitalization currently stands at ₹38,623 crore, reflecting its significant value in the renewable energy sector.

52-Week Highs and Lows Show Volatility

IREDA shares touched a record high of ₹310 on July 15, 2024, driven by strong investor sentiment and growth prospects in the renewable energy space. However, since then, the stock has been on a downward trajectory and recently touched a 52-week low of ₹124.50 on March 20, 2024.

The correction has caught the attention of both technical analysts and value investors who are now evaluating entry points and risk-reward ratios.

Expert Views on Support and Resistance Levels

Short-Term Trading Range: ₹137–₹150

According to Jigar S Patel of Anand Rathi, IREDA’s current support level lies at ₹137, with resistance at ₹145. He suggests that a decisive breakout above ₹145 could pave the way for further gains up to ₹150. The expected short-term trading range is seen between ₹137 and ₹150.

Bullish Momentum Possible Beyond ₹151

On the other hand, A R Ramachandran, a SEBI-registered independent analyst, shares a slightly more bullish outlook. He believes that if IREDA manages a daily close above ₹151, it could target ₹180 in the near term, supported by favorable technical indicators and investor sentiment.

IREDA’s Strong Fundamentals and Government Backing

IREDA is a Mini Ratna (Category – I) public sector enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE). The organization has been a key player in India’s renewable energy sector for over 36 years, providing financial support for renewable energy, energy efficiency, and conservation projects.

The company’s role in accelerating India’s green energy transition adds a layer of long-term strength to its fundamentals, which could appeal to long-term investors despite short-term volatility.

Conclusion:

The sharp correction in IREDA stock has undoubtedly shaken some short-term investors, but the drop has also brought it into technically oversold territory, indicating a potential bottoming out phase. With strong government backing, sound fundamentals, and favorable analyst views around support zones, IREDA may soon see a shift in momentum. Investors are now closely watching key resistance levels for signs of a sustainable recovery. As always, risk management remains crucial, but this dip could be a golden opportunity for those betting on India’s green energy future.

FAQs

Q1: Why did IREDA stock fall 53% from its high?

The fall is largely due to profit booking and market volatility after a strong rally in 2024. Technical indicators now show oversold conditions.

Q2: What does an RSI of 26.6 indicate?

An RSI below 30 indicates that the stock is in an oversold zone, which could mean a potential rebound is likely.

Q3: What are the key support and resistance levels for IREDA?

Support is seen at ₹137, while resistance lies at ₹145–₹151. A breakout above ₹151 may push the stock to ₹180.

Q4: Is IREDA fundamentally strong?

Yes, IREDA is a Mini Ratna PSU under MNRE and has been a key player in the renewable energy financing space for over 36 years.

Q5: Should I invest in IREDA now?

While the stock looks oversold and technically attractive, investors should assess risk and monitor price action around key resistance levels before entering.