Shares of Indian Renewable Energy Development Agency (IREDA) Ltd. were trading almost flat on Thursday, September 5. It opened at ₹236.20 and went on to hit a day’s high of ₹238.65.

Technical Analyst Rajesh Satpute mentioned that while there was a breakout with volume in IREDA, the stock did not continue to rise after the breakout.

Answering a viewer query on CNBC Awaaz, the chartist noted that the breakout was so clear that it likely appeared as a buy signal on most analysts’ charts.

However, given how the stock has been moving, Satpute is concerned and recommends maintaining a strict stop loss at ₹230. If the stock falls below this level, it could drop to around ₹200, and possibly even as low as ₹190, he said.

If the stock recovers from here, the analyst suggests considering an exit around the ₹250-₹260 range.

On the charts, the Relative Strength Index (RSI) of IREDA is at 42.7, which means that the stock is trading neither in the overbought nor in the oversold territory. An RSI reading above 70 means that the stock is overbought.

Brokerage PhillipCapital in its recent note said the recent rally in the stock of IREDA was driven by passive flows rather than any major fundamental reason. PhillipCapital had assigned a ‘Sell’ rating on IREDA with a price target of ₹130.

On the flip side, ICICI Direct has retained a ‘Buy’ rating on IREDA with a price target of ₹330.

The IREDA stock has skyrocketed since its listing in November 2023. So far in 2024, the stock has risen nearly 125%.

Shares of IREDA are currently trading 0.35% higher at ₹236.28 during today’s trading session. The stock, despite correcting 7% in the past five sessions, rallied nearly 300% over the last 12 months.

At this level, IREDA commands a market capitalisation of ₹63,458 crore.