Trade Idea of The Day - IndiGo Ld Target Rs. 80 - Religare Broking Ltd
BUY 30 MAR 1460 PUT SELL 30 MAR 1400 PUT Indigo Ltd Entry Range 45 – 50 Target Range 80 Stop Loss 30
Rationale
* On the daily chart, INDIGO continue to trade in a clear downtrend, decisively trading below its key moving average of 20-DEMA and 50-DEMA, indicating persistent selling pressure and weak short-term momentum.
* The recent price action exhibits a breakdown below the long-term rising trendline support near the 4,400 zone, indicate a structural weakness and increasing the probability of further downside.
* The key Momentum indicators remain weak, with RSI hovering near the 40 level, reflecting lack of buying strength and continued bearish bias for the near term.
* Additionally MACD remains in negative territory with a bearish crossover and expanding histogram, signalling robust downside momentum, hence a sell-on-rise approach is advisable unless the prices reclaims key moving averages.
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