Trade Idea of The Day - IndiGo Ltd Target Rs.110 - Religare Broking Ltd
IndiGo Ltd
BUY 26 MAY 4200 PUT SELL 26 MAY 4000 PUT IndiGo Ltd Entry Range 60-65 Target Range 110 Stop Loss 40
Rationale
* ON the daily chart INDIGO remains under pressure as the prices continuously trades below its key moving averages of 20-DEMA and 50-DEMA, indicating a sustained bearish trend.
* Recent price action shows lower highs and lower lows, reinforcing the prevailing downtrend. Any minor pullbacks are being sold into, highlighting continued dominance of sellers in the market.
* RSI is hovering near the 40 mark, reflecting weak strength and absence of buying interest, while MACD shows signs of negative crossover, further confirming bearish momentum.
* As long as the prices holds below the 4450-4500 resistance zone, remain unable to reclaim these EMA zone, near term momentum remain weak with limited upside.
