INDIGO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | INDIGO | Market Cap | 1,77,393 Cr. | Current Price | 4,590 ₹ | High / Low | 6,232 ₹ |
| Stock P/E | 39.1 | Book Value | 220 ₹ | Dividend Yield | 0.22 % | ROCE | 17.3 % |
| ROE | 104 % | Face Value | 10.0 ₹ | DMA 50 | 5,059 ₹ | DMA 200 | 5,280 ₹ |
| Chg in FII Hold | -3.45 % | Chg in DII Hold | 3.50 % | PAT Qtr | 1,912 Cr. | PAT Prev Qtr | -2,614 Cr. |
| RSI | 33.4 | MACD | -131 | Volume | 4,86,915 | Avg Vol 1Wk | 12,74,250 |
| Low price | 4,158 ₹ | High price | 6,232 ₹ | PEG Ratio | 0.92 | Debt to equity | 8.83 |
| 52w Index | 20.8 % | Qtr Profit Var | -21.7 % | EPS | 83.7 ₹ | Industry PE | 17.5 |
📉 Chart & Trend Analysis: INDIGO is trading at ₹4,590, below both its 50 DMA (₹5,059) and 200 DMA (₹5,280), signaling weakness. RSI at 33.4 suggests the stock is near oversold territory. MACD at -131 confirms strong bearish momentum. Bollinger Bands show price leaning toward the lower band, indicating sustained selling pressure. Current volume (4.9L) is significantly below the 1-week average (12.7L), reflecting weak participation.
🔑 Momentum Signals: Short-term momentum is bearish with immediate support at ₹4,158 (recent low) and resistance at ₹4,900–₹5,000 (trendline + DMA zone). Optimal entry zone: ₹4,200–₹4,300 for risk-tolerant traders. Exit zone: ₹4,900–₹5,000 if recovery occurs. Trend status: Reversing downward.
Positive ✅
- ROE of 104% highlights exceptional profitability relative to equity.
- Quarterly PAT of ₹1,912 Cr shows strong recovery from previous losses.
- DII holding increased (+3.50%), reflecting domestic institutional confidence.
- PEG ratio of 0.92 indicates reasonable valuation relative to growth.
Limitation ⚠️
- Stock trading below both 50 DMA and 200 DMA, confirming weak technical strength.
- High debt-to-equity ratio (8.83) raises financial risk concerns.
- Quarterly profit variation (-21.7%) shows earnings volatility.
- Volume trend weaker than average, indicating lack of strong buying support.
Company Negative News 📉
- FII holding decreased (-3.45%), showing reduced foreign investor confidence.
- Stock has fallen sharply from 52-week high of ₹6,232 to ₹4,590, eroding investor sentiment.
Company Positive News 📊
- Turnaround from previous quarter loss of ₹-2,614 Cr to profit of ₹1,912 Cr.
- EPS of ₹83.7 reflects strong earnings base.
Industry 🌐
- Industry PE at 17.5 is significantly lower than INDIGO’s PE of 39.1, suggesting sector peers may be more attractively valued.
- Aviation sector continues to benefit from rising passenger demand and operational recovery post-pandemic.
Conclusion 📝
INDIGO is currently in a bearish reversal phase, trading below key moving averages with weak momentum indicators. While fundamentals show strong ROE and recent profit recovery, high debt and declining FII confidence remain concerns. Risk-tolerant traders may consider entries near ₹4,200–₹4,300 with exits around ₹4,900–₹5,000, while long-term investors should wait for confirmation of trend reversal above the 50 DMA.
Would you like me to also prepare a sector benchmarking overlay comparing INDIGO with peers like SpiceJet, Air India (if listed), and global carriers to highlight relative valuation and momentum?