INDIGO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | INDIGO | Market Cap | 1,68,322 Cr. | Current Price | 4,354 ₹ | High / Low | 6,232 ₹ |
| Stock P/E | 37.1 | Book Value | 220 ₹ | Dividend Yield | 0.23 % | ROCE | 17.3 % |
| ROE | 104 % | Face Value | 10.0 ₹ | DMA 50 | 4,731 ₹ | DMA 200 | 5,114 ₹ |
| Chg in FII Hold | -3.45 % | Chg in DII Hold | 3.50 % | PAT Qtr | 1,912 Cr. | PAT Prev Qtr | -2,614 Cr. |
| RSI | 41.0 | MACD | -165 | Volume | 17,22,966 | Avg Vol 1Wk | 16,60,055 |
| Low price | 4,035 ₹ | High price | 6,232 ₹ | PEG Ratio | 0.87 | Debt to equity | 8.83 |
| 52w Index | 14.5 % | Qtr Profit Var | -21.7 % | EPS | 83.7 ₹ | Industry PE | 17.0 |
📉 Chart & Trend: INDIGO is trading below both its 50 DMA (₹4,731) and 200 DMA (₹5,114), with the current price at ₹4,354. This indicates a bearish undertone and lack of recovery momentum.
📊 RSI: At 41.0, RSI is weak but not oversold, suggesting limited upside potential in the short term.
📉 MACD: Negative at -165, confirming bearish momentum and absence of reversal signals.
📈 Bollinger Bands: Price is near the lower band, reflecting weakness and potential downside risk if support breaks.
📊 Volume: Current volume (17.2 Lakh) is slightly above average weekly volume (16.6 Lakh), showing active participation but tilted towards selling pressure.
📍 Support & Resistance:
- Strong support: ₹4,035
- Immediate resistance: ₹4,731 (50 DMA)
- Major resistance: ₹5,114 (200 DMA)
Optimal entry zone: ₹4,100–₹4,300 (near support).
Exit zone: ₹4,700–₹4,800 (resistance cluster).
🔎 Trend Status: The stock is consolidating with bearish bias. A reversal requires sustained close above ₹4,731.
Positive
- ROE of 104% indicates exceptional shareholder return efficiency.
- EPS at ₹83.7 supports earnings visibility.
- PEG ratio of 0.87 suggests reasonable valuation relative to growth.
- Strong quarterly PAT recovery (₹1,912 Cr vs -₹2,614 Cr) shows operational turnaround.
Limitation
- Trading below both 50 DMA and 200 DMA signals weakness.
- RSI and MACD confirm bearish momentum.
- Debt-to-equity ratio of 8.83 indicates high leverage risk.
- High P/E of 37.1 compared to industry PE of 17.0 shows overvaluation.
Company Negative News
- Quarterly profit variation of -21.7% reflects earnings volatility.
- FII holding decreased by -3.45%, showing reduced foreign investor confidence.
Company Positive News
- DII holding increased by 3.50%, reflecting domestic institutional support.
- Strong recovery in profitability after previous quarter’s loss.
Industry
- Industry PE at 17.0 vs INDIGO’s PE of 37.1 shows relative overvaluation.
- Aviation sector remains cyclical but benefits from rising travel demand and capacity expansion.
Conclusion
⚖️ INDIGO is consolidating with bearish bias near support. Short-term traders may consider entry around ₹4,100–₹4,300 with exits near ₹4,700–₹4,800. Long-term investors should be cautious given high leverage and overvaluation, waiting for confirmation above ₹4,731 before adding positions.
Would you like me to extend this into an aviation basket overlay (SpiceJet, Air India, global airline indices) so you can benchmark INDIGO’s setup against peers and confirm sector momentum?