IRCTC's stock surges 11% in a week, although its shares soar 8%. What should investors do?

 IRCTC's stock surges 11% in a week, although its shares soar 8%. What should investors do?

Compared to the Nifty 50, which has gained 15% so far this year, IRCTC shares have risen 33% so far.

Since the firm revealed its significant ambitions to expand into the non-railway food industry last week, IRCTC's stock has witnessed a nice upswing.

On December 21, IRCTC shares increased by about 8% due to strong trading. On the BSE and National Stock Exchange (NSE) together, about 2 crore shares were traded; the 1-month average was 80 lakh. Since the firm revealed last week that it intends to significantly expand its non-railway catering operations throughout the nation, the stock has enjoyed a strong surge.

"IRCTC is now on the path to expand into business areas beyond railways to promote its brand and business across the country," the mini-ratna PSU said in a December 13 regulatory filing. IRCTC's share price has increased since then. eleven percent. During the same time frame, the benchmark Nifty 50 has increased by 1.5 percent.

IRCTC shares were up 7.3 percent at Rs 855.25 on the NSE at 1:14 pm. The stock has risen 33 per cent so far this year, compared to the Nifty 50's 15 per cent increase.

Investors are enthused about the growth plan, according to experts. IRCTC's stock has been stabilizing around the Rs 630–750 band for the last three to four months. The recent clean breakout from the aforementioned range is appealing, according to Jigar S. Patel of Anand Rathi Shares & Stock Brokers.

Due to strong volume, the weekly scale breakthrough seems legitimate. It has also broken out of a bearish trend line that has been there for a year. According to Patel, the weekly relative strength index (RSI) has gone above its previous swing high of 60 and is presently hovering around 68 levels.

Positive weekly DMI (Directional Movement Index) data from IRCTC, according to Patel, "confirms our bullish stance in the counter." -Lose around Rs 740 on a daily closing basis. -Buy in the range of Rs 800-820 with an upside objective of Rs 950, he added.

IRCTC now oversees catering services for a number of ministries and independent organizations, such as colleges and the judiciary. Nine of these establishments, including the Department of Telecommunications in New Delhi, the Calcutta High Court, and the UP Secretariat in Lucknow, are already home to its hospitality outlets.

Furthermore, IRCTC has already inked Memorandums of Understanding (MoU) with a number of government agencies, military institutions including Indian Maritime University in Kolkata and Cotton University in Guwahati, and the Border Security Force.

IRCTC said in a BSE filing that it is "in the active phase of opening 15 more catering units across the country in the near future."