Recent Price Movement and Market Comparison
The stock has underperformed significantly against the benchmark Sensex over multiple time frames. In the past week, IRIS Business shares fell by 4.74%, whereas the Sensex declined marginally by 0.40%. Over the last month, the stock's loss widened to 8.22%, compared to a negligible 0.23% drop in the Sensex. Year-to-date figures reveal a stark contrast, with IRIS Business down 35.48% while the Sensex has gained 8.12%. Even on a one-year basis, the stock has declined by 33.19%, whereas the Sensex has appreciated by 5.36%. These figures highlight a persistent underperformance relative to the broader market.
Despite this recent weakness, it is worth noting that IRIS Business has delivered impressive long-term returns, with a three-year gain of 266.60% and a five-year surge of 700.27%, substantially outpacing the Sensex’s respective gains of 37.73% and 79.90%. However, the current trend indicates a correction phase or consolidation after a prolonged rally.
Strong fundamentals, solid momentum, fair price – This Large Cap from the NBFC sector checks every box for our Top 1%. This should definitely be on your radar!
- - Complete fundamentals package
- - Technical momentum confirmed
- - Reasonable valuation entry
Intraday Volatility and Technical Indicators
On 18-Dec, IRIS Business shares exhibited intraday volatility, reaching a high of ₹314.70, which was a 4.03% increase from the previous close, before retreating to the day’s low of ₹295.30, marking a 2.38% decline. The weighted average price indicates that a greater volume of shares traded closer to the lower end of the day’s price range, signalling selling pressure.
Technically, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests a bearish trend and weak short- to long-term momentum. The consecutive two-day decline, with a cumulative loss of 2.61%, further emphasises the negative sentiment among traders and investors.
Investor Participation and Liquidity
Investor engagement appears to be waning, as evidenced by a sharp drop in delivery volume. On 17-Dec, the delivery volume was recorded at 2.03 lakh shares, representing a 55.49% decrease compared to the five-day average delivery volume. This decline in investor participation often signals reduced conviction in the stock’s near-term prospects and can exacerbate price declines.
Despite this, the stock maintains adequate liquidity, with trading volumes sufficient to support sizeable trade sizes without significant price disruption. This liquidity ensures that investors can enter or exit positions relatively easily, although the prevailing sentiment remains cautious.
Holding IRIS Business from Software Products? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary and Outlook
The decline in IRIS Business shares on 18-Dec can be attributed to a combination of factors including sustained underperformance relative to the Sensex, technical weakness as the stock trades below all major moving averages, and a marked reduction in investor participation. The intraday price action, with a failure to sustain gains and a weighted average price skewed towards the lower end, further underscores the prevailing bearish sentiment.
While the stock has demonstrated exceptional long-term growth, the current environment suggests a period of consolidation or correction. Investors should monitor volume trends and technical indicators closely, as well as broader market conditions, before making fresh commitments. The stock’s liquidity remains sufficient to facilitate trading, but caution is warranted given the recent price and volume dynamics.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
