Stock market today: IREDA share price falls 3% ahead of board meeting for fundraising; check details

Stock market today: IREDA share price dropped almost 3 per cent in morning trade on BSE on Thursday, January 23, in an otherwise positive market. IREDA shares opened at ₹199 against its previous close of ₹200.30 and dropped 2.7 per cent to the level of ₹194.95. The stock, however, pared losses and around 11 AM, it traded 1.60 per cent lower at ₹197.10 on the BSE.

IREDA board meeting today

Indian Renewable Energy Development Agency Limited (IREDA) shares are under pressure ahead of today's board meeting.

In an exchange filing after market hours on Friday, January 17, the company announced that the board of directors of IREDA is scheduled to meet on Thursday, January 23, 2025, to consider and approve fundraising through a qualified institution placement (QIP) process.

In September last year, the ‘Navratna’ PSU company, IREDA, received government approval for raising ₹4,500 crore through fresh equity issue. The Department of Investment and Public Asset Management (DIPAM) gave its approval to the company on September 18, 2024, to raise up to ₹4,500 crore in fresh equity issue through a QIP.

IREDA share price trend

Till the close of the previous session, IREDA's share price has gained nearly 35 per cent over the last year. The stock hit a 52-week low of ₹121 on March 14, followed by a 52-week high of ₹310 on July 15 last year. Considering the previous close of the stock, it is down over 35 per cent from its 52-week high but up 66 per cent from its 52-week low level.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, advises investors to be cautious about the stock at this juncture.

"At present, IREDA stock is resting at the ₹195-support level, but caution is advised as the daily RSI indicates weakness, trading below 50 and currently near the 42 mark. This suggests limited strength in momentum," said Patel.

"A fresh buying opportunity should be considered only if the stock achieves a daily close above ₹210, signalling a potential shift in trend and confirmation of bullish momentum. Until then, adopting a wait-and-watch approach is prudent to avoid premature entries in a potentially weak setup. Monitoring RSI's recovery alongside price action can provide additional confirmation for an entry," Patel said.

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