INDIGO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.6

📉 INDIGO is reversing from its recent highs with weak short-term momentum, though long-term fundamentals and institutional interest remain supportive.

📊 Technical Analysis

• Trend Status: Reversing — price is below 50-DMA and approaching 200-DMA, indicating short-term weakness.
• Moving Averages: Price ₹5,695 is below 50-DMA (₹5,758) but above 200-DMA (₹5,375), suggesting loss of momentum but long-term support.
• RSI (39.8): Bearish zone, indicating oversold conditions and weak momentum.
• MACD (4.08): Positive but flattening, signaling fading bullish momentum.
• Bollinger Bands: Price near lower band, suggesting potential support but no breakout signal.
• Volume: Current volume (11.8L) is above weekly average (9.3L), showing increased activity during the pullback.

🎯 Entry & Exit Zones

• Support Levels: ₹5,600, ₹5,375 (200-DMA), ₹5,200
• Resistance Levels: ₹5,758 (50-DMA), ₹5,950, ₹6,100
• Optimal Entry: ₹5,550–₹5,650 (on pullback)
• Exit Target: ₹5,950–₹6,100 (resistance zone)

✅ Positive

• ROE of 104% and ROCE of 17.3% reflect strong capital efficiency.
• EPS of ₹173 and P/E of 32.9 align with industry average, suggesting fair valuation.
• FII holdings increased by 1.13%, showing foreign investor confidence.
• Price has gained 48.7% from its 52-week low of ₹3,830.

⚠️ Limitation

• RSI in bearish zone may lead to further short-term weakness.
• MACD flattening suggests fading momentum.
• Debt-to-equity ratio of 7.21 is high, typical for airlines but worth monitoring.

📉 Company Negative News

• Quarterly PAT dropped from ₹3,073 Cr to ₹2,161 Cr, indicating margin pressure.
• Quarterly profit variation of -20.7% reflects earnings volatility.

📈 Company Positive News

• DII holdings increased by 0.56%, showing cautious domestic accumulation.
• Strong brand and market leadership in the aviation sector support long-term growth.

🏭 Industry

• Aviation sector is cyclical but recovering with rising travel demand and operational efficiency improvements.
• Industry P/E (32.5) is in line with INDIGO’s (32.9), suggesting fair sector alignment.

🧾 Conclusion

• INDIGO is reversing with weak short-term momentum but supported by strong fundamentals and institutional interest.
• Entry near ₹5,550–₹5,650 could offer tactical value with targets around ₹5,950–₹6,100.
• Investors should monitor RSI and MACD for signs of recovery or deeper correction.