INDIGO - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.4

📊 Indigo (INDIGO) shows moderate potential for swing trading. The stock is currently priced at ₹5,149, below both its 50 DMA (₹5,500) and 200 DMA (₹5,408), indicating short-term weakness. RSI at 39.2 suggests oversold conditions, while MACD (-217) reflects strong bearish momentum. Despite solid fundamentals like high ROE (104%) and EPS (₹131), the recent quarterly loss (-₹2,614 Cr vs profit of ₹2,161 Cr) raises caution. Optimal entry would be near ₹5,000–5,050, close to support. If already holding, consider exiting around ₹5,400–5,500, near resistance levels.

✅ Positive

• Strong ROE (104%) and EPS (₹131)
• Positive FII holding change (+1.13%) and DII inflows (+0.56%)
• PEG ratio (0.92) indicates reasonable valuation relative to growth
• 52-week performance shows 52.6% gain

⚠️ Limitation

• Stock trading below both 50 DMA and 200 DMA
• Weak technical momentum (MACD strongly negative)
• High debt-to-equity ratio (8.83)
• Dividend yield is minimal (0.20%)

📉 Company Negative News

• Sharp quarterly loss (-₹2,614 Cr vs profit of ₹2,161 Cr)
• Profit variation (-164%) highlights operational stress

📈 Company Positive News

• Strong fundamentals with high ROE and EPS
• Positive institutional investor confidence (FII and DII inflows)

🏭 Industry

• Industry PE (18.6) is much lower than Indigo’s PE (39.2), showing relative overvaluation
• Aviation sector remains cyclical, sensitive to fuel costs and demand trends

📝 Conclusion

Indigo presents a cautious swing trade opportunity. Entry near ₹5,000–5,050 is optimal, while exit should be considered around ₹5,400–5,500. Strong fundamentals and institutional inflows support medium-term prospects, but recent losses, high debt, and weak technicals warrant careful risk management.

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