INDIGO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | INDIGO | Market Cap | 1,66,080 Cr. | Current Price | 4,295 ₹ | High / Low | 6,232 ₹ |
| Stock P/E | 36.6 | Book Value | 220 ₹ | Dividend Yield | 0.23 % | ROCE | 17.3 % |
| ROE | 104 % | Face Value | 10.0 ₹ | DMA 50 | 4,529 ₹ | DMA 200 | 4,944 ₹ |
| Chg in FII Hold | -3.35 % | Chg in DII Hold | 3.06 % | PAT Qtr | 1,912 Cr. | PAT Prev Qtr | -2,614 Cr. |
| RSI | 42.8 | MACD | 4.22 | Volume | 21,12,703 | Avg Vol 1Wk | 15,10,742 |
| Low price | 3,895 ₹ | High price | 6,232 ₹ | PEG Ratio | 0.86 | Debt to equity | 8.83 |
| 52w Index | 17.1 % | Qtr Profit Var | -21.7 % | EPS | 83.7 ₹ | Industry PE | 17.9 |
📊 Chart & Indicators
- Current price (₹4,295) is below DMA 50 (₹4,529) and DMA 200 (₹4,944), showing short-term weakness.
- RSI at 42.8 indicates neutral-to-weak momentum, not oversold yet.
- MACD at 4.22 shows mild bullish crossover but momentum is weak.
- Bollinger Bands: price near lower band, suggesting support zone.
- Volume (21.1 Lakh) above average (15.1 Lakh), showing active participation.
🎯 Entry & Exit Zones
- **Entry Zone:** ₹4,200 – ₹4,300 (near support).
- **Exit Zone:** ₹4,500 – ₹4,550 (resistance at DMA 50).
- **Stop-Loss:** Below ₹4,150 (support breakdown risk).
📈 Trend Status
- The stock is **consolidating with bearish bias**.
- Short-term rebound possible if price sustains above ₹4,300 with volume support.
- Long-term trend remains weak unless price crosses ₹4,950 (DMA 200).
✅ Positive
- Strong ROE (104%) and ROCE (17.3%).
- EPS at ₹83.7 with PEG ratio 0.86, showing fair valuation.
- DII holdings increased (+3.06%), showing domestic confidence.
- PAT turned positive (₹1,912 Cr.) after previous quarter loss.
⚠️ Limitation
- Price trading below both DMA 50 and DMA 200.
- RSI weak at 42.8, showing lack of momentum.
- Quarterly profit variation at -21.7%.
- FII holdings reduced (-3.35%), showing foreign investor caution.
- High debt-to-equity ratio (8.83).
📉 Company Negative News
- Sequential decline in profits.
- High leverage raises financial risk.
- Weak global aviation demand outlook.
📈 Company Positive News
- Strong rebound in profitability compared to previous loss.
- Domestic institutions increasing stake.
- Market leadership in aviation sector with strong brand presence.
🏭 Industry
- Industry PE at 17.9 vs INDIGO’s 36.6, showing premium valuation.
- Aviation industry facing cost pressures but long-term demand recovery expected.
🔎 Conclusion
IndiGo (INDIGO) is in a **consolidation phase with weak momentum**. Entry near ₹4,200–₹4,300 offers tactical opportunity with exit targets around ₹4,500–₹4,550. Long-term recovery requires breakout above ₹4,950. Fundamentally strong but debt levels and profit volatility warrant cautious accumulation.
Would you like me to extend this into a sector overlay comparing INDIGO with peers like SpiceJet and Air India (financial + technical benchmarking) for a more complete aviation sector view?