INDIGO - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.8

✈️ INDIGO shows strong fundamentals but weak technical momentum. Entry near ₹5,550–₹5,580 is optimal. If already held, consider exiting near ₹5,950–₹6,050.

📈 Positive

• EPS ₹173 and P/E 32.6 — fairly valued vs industry PE of 32.4
• ROE 104% and ROCE 17.3% — excellent capital efficiency
• PEG ratio 0.76 — attractive valuation relative to growth
• DII and FII holdings increased — rising institutional confidence
• Trading above DMA 200 (₹5,381) — long-term support intact

⚠️ Limitation

• MACD -11.7 and RSI 41.9 — weak technical momentum
• Trading below DMA 50 (₹5,751) — short-term bearish bias
• Dividend yield 0.18% — minimal income support
• Volume below weekly average — cooling short-term interest

🚫 Company Negative News

• Quarterly PAT dropped: ₹2,161 Cr. vs ₹3,073 Cr. — down 20.7%
• Stock down ~10% from 52-week high of ₹6,232

✅ Company Positive News

• Strong YoY performance and market leadership in domestic aviation
• Positive outlook on travel demand and fleet expansion
• Analysts expect recovery toward ₹6,200+ if sentiment improves

🏭 Industry

• Aviation sector benefits from rising passenger traffic, fuel price stability, and fleet modernization
• INDIGO trades in line with industry PE (32.4) — reflects fair valuation

🧾 Conclusion

• INDIGO is a fundamentally strong but technically weak swing candidate
• Best entry: ₹5,550–₹5,580 near support and RSI base
• If already held, exit near ₹5,950–₹6,050 — resistance zone below 52-week high
• Watch for MACD crossover and RSI >50 for confirmation

I can also chart INDIGO’s RSI and MACD trends to help visualize its swing potential.