Shares of IIFL Finance rose sharply in Tuesday’s trade, halting their two-day losing run amid heavy volumes. The stock today jumped 10.28┬аper cent to hit a day high of Rs 519.70┬аover its previous close of Rs 471.25. At today’s high level of Rs 519.70, the stock traded merely 0.23┬аper cent lower from its 52-week high of Rs 520.90, touched on December 21 last year.
Analysts said that support on the counter could be seen at Rs 470, followed by Rs 485 and Rs 487 levels.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, “IIFL is a secular uptrend and is placed above all its major exponential moving averages, indicating inherent strength. The stock has an immediate resistance near Rs 520-odd zone, breaching which in a decisive manner, it is likely to continue its northward journey in uncharted territory. On the flip side, the support is placed around the Rs 485 zone, followed by Rs 470 from a short-term perspective.
AR Ramachandran from Tips2trades said, “IIFL Finance has clearly given a breakout on the daily charts and looks bullish. A daily close above Rs 487 today could lead to targets of Rs 520-545 in the near term. Support will be at Rs 472.”
Around 1.99 lakh shares changed hands on BSE, which was 9 times higher compared to IIFL’s two-week average volume of 22 shares. Turnover on the counter stood at Rs 9.89 crore, commanding a market capitalisation (m-cap) of Rs 19,265.18 crore. There were 18,193 buy orders on BSE, against sell orders of 17,214 shares.
The counter was last seen trading higher than 5-day, 20-, 50-, 100- and 200-day moving averages. IIFL Finance has an average target price of Rs 604, Trendlyne data showed, suggesting a potential upside of 19.23 per cent. The stock has a one-year beta of 0.87, suggesting low volatility.
The counter’s 14-day relative strength index (RSI) came at 63.32. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 21.45.
IIFL Finance, with its subsidiaries, provides a range of loans and mortgages. “These include home loans, gold loans, business loans including loans against property and medium & small enterprise financing, microfinance, developer & construction finance and capital market finance; catering to both retail and corporate clients,” according to its website.
The financial services firm has 3,119 branches in more than 500 cities.
Meanwhile, Indian equity benchmarks traded higher in late deals today, led by gains in consumer goods and technology stocks.
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