IFCI Shares Fall Nearly 14% in Two Sessions After Sharp Rally

IFCI shares fell more than 4.5% to an intraday low of ₹88.40 on Wednesday, September 9, extending their decline to a second consecutive session. The stock had fallen almost 10% on Tuesday, taking its total loss over the two sessions to nearly 14%. 

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The fall follows a strong run in the stock. IFCI shares have gained 72% over the past six months and touched a 52-week high of ₹107.45 on September 4. The stock was in the green from April through August, with its cumulative gain over those five months standing at 87%. 

Much of the recent interest in IFCI has centred on the NSE IPO. The company has indirect exposure to the National Stock Exchange through Stock Holding Corporation of India (SHCIL), in which IFCI holds a controlling stake of more than 50%. 

SHCIL, in turn, owns more than 4% of NSE. This gives IFCI shareholders indirect exposure to developments at the exchange and has made the stock particularly responsive to progress around the much-anticipated NSE IPO. 

The stock's recent rise came from considerably lower levels. IFCI had touched a 52-week low of ₹46.20 on December 9 last year before climbing to its September 4 high of ₹107.45. 

The latest decline has come amid profit booking after the sharp run-up. Technical analysis cited in the report continues to show higher highs and higher lows, with the stock holding above its short-term and long-term moving averages. 

The correction has brought ₹80 into focus as a support level. The report links this level to the neckline of an earlier inverted head-and-shoulders breakout. The 100-day exponential moving average (EMA) is around ₹76. 

Another level highlighted in the technical assessment is ₹68.15, which has been identified as the level that could signal a longer-term trend reversal if breached. The analysis also points to the possibility of the correction extending towards the 50-day and 100-day EMAs. 

For now, the stock's decline comes after several months of gains and a move to a fresh 52-week high earlier this month. The two-session fall has taken IFCI lower from that peak, while the stock remains above its 52-week low of ₹46.20.