INDIGO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | INDIGO | Market Cap | 1,76,546 Cr. | Current Price | 4,568 ₹ | High / Low | 6,232 ₹ |
| Stock P/E | 39.0 | Book Value | 220 ₹ | Dividend Yield | 0.22 % | ROCE | 17.3 % |
| ROE | 104 % | Face Value | 10.0 ₹ | DMA 50 | 4,449 ₹ | DMA 200 | 4,849 ₹ |
| Chg in FII Hold | -3.35 % | Chg in DII Hold | 3.06 % | PAT Qtr | 1,912 Cr. | PAT Prev Qtr | -2,614 Cr. |
| RSI | 58.7 | MACD | 10.5 | Volume | 14,36,160 | Avg Vol 1Wk | 14,38,760 |
| Low price | 3,895 ₹ | High price | 6,232 ₹ | PEG Ratio | 0.91 | Debt to equity | 8.83 |
| 52w Index | 28.8 % | Qtr Profit Var | -21.7 % | EPS | 83.7 ₹ | Industry PE | 18.9 |
📊 Chart & Trend Analysis:
INDIGO is trading above its 50 DMA (₹4,449) but below the 200 DMA (₹4,849), showing short-term strength but medium-term caution. RSI at 58.7 indicates mild bullish momentum. MACD at 10.5 confirms positive momentum. Bollinger Bands suggest price is moving toward the upper band, with support around ₹4,450.
📈 Momentum Signals:
- Short-term momentum is positive, with volume (14.36L) in line with weekly average (14.38L).
- Support zone: ₹4,450 – ₹4,500.
- Resistance zone: ₹4,850 – ₹5,000.
- Break above ₹5,000 could trigger a strong rally; failure to hold ₹4,450 may lead to consolidation.
🔎 Trend Status:
Currently trending upward with bullish undertones. Sustained buying above 200 DMA will confirm reversal into a stronger uptrend.
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Positive
✔ Strong ROE (104%) highlights exceptional profitability.
✔ PEG ratio at 0.91 suggests fair valuation relative to growth.
✔ PAT turnaround (loss of ₹2,614 Cr → profit of ₹1,912 Cr).
Limitation
⚠ High debt-to-equity ratio (8.83) raises leverage concerns.
⚠ FII holdings declined (-3.35%), showing reduced foreign investor confidence.
⚠ Quarterly profit variation (-21.7%) indicates earnings volatility.
Company Negative News
📉 High leverage continues to weigh on balance sheet.
📉 Profitability remains inconsistent despite recent turnaround.
Company Positive News
📢 Strong domestic institutional support (+3.06% DII holdings).
📢 Passenger demand recovery boosting revenue outlook.
📢 Expansion in fleet and international routes.
Industry
🌐 Aviation sector PE at 18.9 vs INDIGO’s 39.0, showing premium valuation.
🌐 Industry supported by rising travel demand and easing fuel costs.
Conclusion
INDIGO shows bullish momentum with entry near ₹4,450–₹4,500 and exit targets around ₹4,850–₹5,000. Long-term investors should weigh strong fundamentals against high leverage, while traders can exploit short-term uptrend with strict stop-loss below ₹4,400.
Would you like me to refine this into a swing trade roadmap with layered targets, or expand into a sector overlay analysis comparing INDIGO against SpiceJet and Air India?