INDIGO - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.9
| Stock Code | INDIGO | Market Cap | 1,93,789 Cr. | Current Price | 5,012 ₹ | High / Low | 6,232 ₹ |
| Book Value | 167 ₹ | Dividend Yield | 0.20 % | ROCE | 6.71 % | ROE | -14.4 % |
| Face Value | 10.0 ₹ | DMA 50 | 4,533 ₹ | DMA 200 | 4,816 ₹ | Chg in FII Hold | -3.35 % |
| Chg in DII Hold | 3.06 % | PAT Qtr | -2,438 Cr. | PAT Prev Qtr | 1,912 Cr. | RSI | 70.4 |
| MACD | 124 | Volume | 12,76,079 | Avg Vol 1Wk | 16,23,187 | Low price | 3,895 ₹ |
| High price | 6,232 ₹ | Debt to equity | 13.2 | 52w Index | 47.8 % | Qtr Profit Var | -179 % |
| EPS | -64.7 ₹ | Industry PE | 16.7 |
InterGlobe Aviation (INDIGO) currently shows weak potential for swing trading. The stock is trading at ₹5,012, above both the 50 DMA (₹4,533) and 200 DMA (₹4,816), indicating recent strength. However, RSI at 70.4 signals overbought conditions, and MACD at 124 reflects strong but potentially unsustainable bullish momentum. Fundamentals are concerning: ROCE is only 6.71%, ROE is negative (-14.4%), debt-to-equity is very high at 13.2, and EPS is negative (-64.7 ₹). The latest quarterly PAT is a loss of ₹2,438 Cr. compared to a profit of ₹1,912 Cr. in the previous quarter, showing sharp volatility. Overall, this stock is risky for swing trading at current levels.
✅ Optimal Entry Price: Around ₹4,700–₹4,800 (near 200 DMA support)
📈 Exit Strategy (if already holding): Consider exiting near ₹5,200–₹5,300 (short-term resistance) to lock in gains before potential correction.
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🌟 Positive
- 📈 Trading above both 50 DMA and 200 DMA shows short-term strength.
- 📊 Strong industry presence with large market cap of ₹1,93,789 Cr.
- 📈 Domestic institutional investors increased holdings (+3.06%).
⚠️ Limitation
- 📉 Negative ROE (-14.4%) and weak ROCE (6.71%).
- 📊 Very high [debt-to-equity](ca://s?q=Debt_to_equity_ratio) ratio of 13.2.
- 📉 RSI at 70.4 indicates overbought conditions.
- 📊 EPS is negative (-64.7 ₹), reflecting poor profitability.
📰 Company Negative News
- 📉 Quarterly PAT turned into a loss of ₹2,438 Cr. from a profit of ₹1,912 Cr.
- 📊 FII holdings decreased (-3.35%), showing reduced foreign investor confidence.
📢 Company Positive News
- 💡 Stock trading above DMA levels indicates short-term momentum.
- 📈 Domestic institutional investors increased holdings (+3.06%).
- 🌐 Strong market position in aviation sector.
🏭 Industry
- 📊 Industry PE is 16.7, while INDIGO has no meaningful P/E due to negative earnings.
- ✈️ Aviation industry faces cyclical demand and high cost pressures, making profitability volatile.
✅ Conclusion
INDIGO is currently overbought with weak fundamentals and high debt, making it a risky swing trade candidate. Entry near ₹4,700–₹4,800 offers better risk-reward, while existing holders should consider exiting near ₹5,200–₹5,300 to avoid potential downside. Long-term investors should be cautious given negative earnings and high leverage.
Would you like me to also compare INDIGO’s swing trade setup with peers like SpiceJet or Air India to highlight relative opportunities in the aviation sector?