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Shares of InterGlobe Aviation Ltd, the parent company of IndiGo, witnessed a sharp rally on Monday, surging as much as 9.78% to touch a high of Rs 5,599, before settling slightly lower at Rs 5,479.85, still up 7.45% for the day. The stock has now delivered a year-to-date (YTD) gain of 19.35%, bolstered by a major geopolitical and operational development.
The sharp upside comes on the back of a ceasefire agreement between India and Pakistan, which has resulted in the reopening of Indian airspace for commercial operations. The cancellation of NOTAMs (Notices to Airmen) across 32 airports is expected to ease air traffic congestion and open new growth opportunities for both domestic and international carriers.
Analyst Take: What Lies Ahead for IndiGo?
According to market experts, the Rs 5,350–5,300 range will now serve as a crucial support zone, while any decisive breakout above Rs 5,600–5,650 could push the stock further.
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Kunal Kamble of Bonanza said, “If IndiGo maintains above Rs 5,350, we could see targets of Rs 5,926 and Rs 6,210 in the short to medium term.”
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Jigar S Patel from Anand Rathi sees Rs 5,300 as support and Rs 5,600 as resistance, projecting a short-term trading range of Rs 5,200 to Rs 5,800.
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Ravi Singh of Religare Broking pointed out that Rs 5,500 acts as immediate support, while Rs 5,650 is a key resistance level.
Technically, IndiGo is in a bullish zone, trading above its 5-day to 200-day simple moving averages. Its 14-day RSI stands at 58.91, indicating a healthy momentum without entering overbought territory.
From a valuation standpoint, the stock holds a P/E ratio of 34.86, P/B of 56.65, and boasts a Return on Equity (RoE) of 162.65%, with an EPS of Rs 157.18. Its 1-year beta of 0.9 also reflects lower volatility compared to broader market trends.
Disclaimer:
This article is published by Jobaaj News for informational purposes only and should not be considered as investment advice. Readers are advised to conduct their own due diligence and consult a qualified financial advisor before making any investment decisions.
