IRCTC share price tanks nearly 50% from record high; what should investors do now? Buy, sell, hold?

IRCTC's share price tanked over 46 percent from an all-time high hit in the previous session to Rs 4,371 apiece on BSE. Avaneesh Parasar

IRCTC share price tanked over 46 per cent from an all-time high hit in the previous session to Rs 4,371 apiece on BSE on Wednesday. The market capitalisation of the Indian Railway Catering and Tourism Corporation has declined to Rs 69,936 crore in intra-day trade today. It touched Rs 1.02 lakh crore in intra-day trade on Tuesday. The stock rose to a record high of Rs 6,393 apiece in yesterday’s intraday deals. “Railway stocks were under pressure on reports of the appointment of regulator for railways. The news was taken as a threat to IRCTC’s growing dominance in the segment. However, despite this development, IRCTC has shown a good rally in the month of October and the open interest reached near 90 per cent of the limit. Stocks enter the ban once open interest crosses 95% of the limit and comes out of it once it’s below 80%,” Ravi Singh, VP — Head of Research, Share India Securities, told Financial Express Online.

Due to this reason, traders have attributed the huge volatility to speculation that it has entered into an F&O ban. On this speculation, investors started squaring up their positions and booked profits in the stock, he said. “The up move in IRCTC was momentarily and the profit booking after the speculation has pushed down the stock substantially. IRCTC may fall further having support at 4200 and 3800 and resistance at 4800 and 5200,” Singh said.
Source: https://www.financialexpress.com/market/irctc-share-price-tanks-nearly-50-from-record-high-what-should-investors-do-now-buy-sell-hold/2352971/