Trade Idea of The Day - IndiGo Ltd Target Rs.140 - Religare Broking Ltd
IndiGo Ltd
BUY 27 OCT 4900 PUT SELL 27 OCT 4700 PUT Entry Range 55 – 60 Target 140 Stop Loss 30
Rationale
• INDIGO exhibits a robust technical weakness on the weekly chart as price action breaks below crucial support levels. The stock price has slipped below both its 20-WEMA and 50-WEMA, signaling a bearish trend continuation in the coming sessions.
• A dynamic descending trendline continues to cap overhead recovery efforts. Momentum indicators further confirm weakness, with the RSI falling below the 50 mark and the MACD showing a bearish crossover alongside weakening histogram bars.
• Given the dominant supply pressure and inability to hold key moving averages, the stock presents a classic "sell on rise" setup. Any temporary pullbacks toward the 4,960-5,000 resistance zone should be utilized to initiate the fresh bearish strategy to capitalize the negative momentum.
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SEBI Registration number is INZ00017433
