The shares
of the Indian Railway Catering and Tourism Corporation (IRCTC) saw a fall of Rs
1,400 or 15%  approximately, 4,995 per
share in Tuesday’s trading session after hitting the highest in the opening
agreements. Stock closed more than 8% at Rs 5,363.

Also Read: IRCTC market cap hits Rs 1 lakh crore after share jumps 8%

 IRCTC shares reached a record high of Rs 6,393
in opening deals, with their market capitalization exceeding Rs 1 trillion, up
more than 7%.

Wide markets
were also unstable these days. Sensex after hitting 62,000 in the initial trade
ended 49 points. Major bookings of profits have been seen in the midcap and in
the smaller area.

The
co-founder of Equity99, Rahul Sharma suggested investors to be careful after
the sudden drop in today’s trade especially in mid caps and small caps. As, today’s
railway stocks were seen in pressure. 

Also Read: IRCTC breaks into top 100 most valuable companies on Bombay Stock Exchange

 “Investors should be cautious at these levels
after the movement seen in today’s trade especially in mid caps and small caps
counters. Investors are advised to keep strict stop-loss to their positions.
Also today railway stocks were seen in pressure at day’s close after the
outcome of news of appointment of regulator for railways. IRCTC was down 15%.
Today major profit-booking was also witnessed in power stocks,” said Rahul
Sharma.

 Also Read: IRCTC stock split: 10 things to know

He further
added the next IRCTC support is set at 4750 -4500 levels, where the expected
return is expected, so buy discounts are only recommended for long-term
investors. Traders are advised to maintain a strong loss on the stock market
because stocks are under pressure to make a profit and will also remain
unstable.

Swastika
Investmart research head, Santosh Meena said that “The market has seen sharp
sales after hitting new tricks and we are seeing the first sign of distribution
in the market as Nifty and Sensex ended up with a small cut but the real pain
was in the wider market because the Nifty Midcap index ended with more than 2%
cuts. The Fall was led by names that have been playing well over the past few
days such as the IRCTC and Tata Power”. 

Also Read: Sensex hit 62k for the first time while Nifty tops 18,500 in early trade

“IRCTC’s
fundamentals are still strong but there is valuation concern after a steep run
and there was a clear speculative move as it was easy to make money for the
traders every day so we are seeing a technical correction where the
psychological level of 5000 is immediate support but there is a risk that it
may slip below this and may head towards 20-DMA which may coincide with 4500
level however 4000-3800 will be a critical demand zone to take fresh buying positions,”
he further added.

The IRCTC
entered the first markets with a listing in October 2019 and enjoys strong
governance. It has a 100% market share on the railway network. And it is the
only company authorized to handle cooking serving on trains and in large static
units at train stations.