Technical Trend Overview
The technical landscape for IREDA has deteriorated over recent weeks, with the overall trend now classified as bearish, a downgrade from the previous mildly bearish stance. This shift is corroborated by multiple technical indicators across different time frames, signalling increased selling pressure and weakening momentum.
On the daily chart, moving averages have turned decisively bearish, with the stock trading below its key short-term and medium-term averages. This suggests that the immediate price action is under pressure, and the likelihood of a sustained rebound remains limited until these averages are breached upwards.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD remains mildly bullish, indicating some underlying positive momentum in the medium term. However, the monthly MACD reading is less favourable, lacking a clear bullish signal and reflecting the broader bearish trend.
This divergence between weekly and monthly MACD readings suggests that while short-term momentum may offer sporadic relief rallies, the longer-term outlook remains subdued. Investors should be cautious of potential volatility as these conflicting signals play out.
RSI and Overbought/Oversold Conditions
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, leaving room for further downside or sideways consolidation before a clear directional bias emerges.
Such neutral RSI readings often precede significant price moves, making it imperative for traders to monitor this indicator closely for any shifts that could signal a reversal or acceleration of the current trend.
Bollinger Bands and Volatility
Bollinger Bands on both weekly and monthly time frames are firmly bearish, with the stock price frequently touching or breaching the lower band. This pattern highlights increased volatility and downward pressure, suggesting that the stock is experiencing sustained selling interest.
The persistent proximity to the lower Bollinger Band often signals that the stock is trading near oversold levels, but without a confirmed reversal pattern, the bearish momentum is likely to continue in the near term.
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On-Balance Volume and KST Analysis
The On-Balance Volume (OBV) indicator presents a nuanced view. Weekly OBV readings are mildly bullish, suggesting that volume trends may be supporting some accumulation in the short term. Conversely, the monthly OBV is mildly bearish, indicating that longer-term volume flows remain negative.
The Know Sure Thing (KST) indicator aligns with the bearish narrative, showing bearish signals on the weekly chart and an absence of clear monthly signals. This further reinforces the notion that momentum is weakening and that the stock may face continued downward pressure.
Dow Theory and Market Context
According to Dow Theory, the weekly chart shows no clear trend, while the monthly chart is mildly bearish. This suggests that while short-term price movements lack conviction, the broader market sentiment towards IREDA is cautious to negative.
Comparing IREDA’s performance with the Sensex reveals a stark contrast. Over the past year, IREDA has declined by 33.27%, significantly underperforming the Sensex’s 8.47% gain. Year-to-date, the stock is down 2.57%, slightly worse than the Sensex’s 1.94% decline. Even over the past month, IREDA managed a modest 1.94% gain, outperforming the Sensex’s 1.31% loss, but this appears to be a short-lived respite amid a generally weak trend.
Price Range and Volatility
IREDA’s current price of ₹136.30 is close to its 52-week low of ₹129.10, while still significantly below its 52-week high of ₹212.45. Today’s trading range between ₹135.60 and ₹139.50 reflects moderate intraday volatility, consistent with the bearish technical backdrop.
The stock’s inability to sustain levels above ₹140 in recent sessions underscores the prevailing selling pressure and the challenge in reversing the downtrend.
Market Capitalisation and Mojo Ratings
With a Market Cap Grade of 2, IREDA is classified as a smaller-cap entity within the finance sector, which often entails higher volatility and risk. The company’s Mojo Score currently stands at 43.0, reflecting a Sell rating, a downgrade from the previous Hold grade as of 11 Nov 2025. This downgrade signals a deterioration in the company’s overall quality and outlook as assessed by MarketsMOJO’s proprietary metrics.
Investors should weigh these technical and fundamental signals carefully, especially given the stock’s underperformance relative to broader market benchmarks and the bearish technical indicators dominating the charts.
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Investor Takeaway and Outlook
In summary, Indian Renewable Energy Development Agency Ltd is currently navigating a challenging technical environment. The shift from mildly bearish to bearish trends across multiple indicators, including moving averages, Bollinger Bands, and KST, signals increased downside risk. The mixed MACD and neutral RSI readings suggest potential short-term volatility but do not yet indicate a clear reversal.
Given the stock’s significant underperformance relative to the Sensex over the past year and the recent downgrade in its Mojo Grade to Sell, investors should exercise caution. Those holding the stock may consider monitoring key support levels near ₹129 and watch for any improvement in volume and momentum indicators before committing additional capital.
Meanwhile, traders seeking opportunities might look for confirmation of trend reversals through sustained breaks above moving averages or bullish MACD crossovers on monthly charts. Until then, the prevailing technical signals favour a cautious or defensive stance.
Long-Term Performance Context
While short-term technicals are bearish, it is worth noting that IREDA’s longer-term returns are not available for 3, 5, and 10-year periods, limiting the ability to assess its historical resilience fully. However, the Sensex’s robust gains of 39.07% over three years and 241.73% over ten years highlight the broader market’s strength, contrasting with IREDA’s recent struggles.
Investors should consider this context when evaluating the stock’s potential for recovery and the relative attractiveness of alternative investments within the finance sector.
Conclusion
Indian Renewable Energy Development Agency Ltd’s technical parameters have shifted decisively towards bearishness, reflecting weakening price momentum and increased selling pressure. The downgrade in its Mojo Grade to Sell further underscores the need for prudence. While short-term indicators offer mixed signals, the overall trend suggests caution for investors and traders alike.
Monitoring key technical levels and volume trends will be critical in the coming weeks to identify any potential inflection points. Until then, the stock remains under pressure amid a challenging market environment.
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