SpiceJet shares jump 7% today; here’s what technical charts indicate

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Shares of SpiceJet Ltd saw a sharp uptick in Wednesday’s trade, taking their winning run to the fourth straight session. The scrip surged 6.79 per cent to hit a day high of Rs 60.88 over its previous close of Rs 57.01.

The budget carrier has recently announced that it will commence daily non-stop flights connecting Delhi and Phuket, starting May 31, 2024. This new service will complement the airline’s existing operations to Bangkok from Kolkata and Delhi, SpiceJet said.

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“The daily non-stop flights between Delhi and Phuket are conveniently timed to ensure a hassle-free travel experience. The departing flight from Delhi will take off at 9 am, arriving in Phuket at 3:15 pm. The return flight departs Phuket at 4:15 pm, arriving in Delhi at 7:20 pm,” the airline stated.

On technical charts, the counter was trading higher than the 5-day, 10-, 20-, 150-day and 200-day simple moving averages (SMAs) but lower than the 30-day, 50-day and 100-day SMAs. Support could be seen in the Rs 58-54 zone.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, “The stock can hit an upside target of Rs 65 in the near term. Keep stop loss placed at Rs 58.”

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Support will be at Rs 55 and resistance at Rs 63.45. A decisive close above Rs 63.45 level may trigger a further upside till Rs 67. The expected trading range will be between Rs 55 and Rs 67 for a month.”

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, “The stock has taken support at the Rs 55 zone. It has witnessed a pullback to improve the bias. Near-term target is visible at 63 and thereafter with strength sustaining, it can achieve Rs 67 level in the coming days.”

AR Ramachandran from Tips2trades said, “SpiceJet stock price looks bullish on daily charts with strong support at Rs 56.8. A daily close above resistance of Rs 62 could lead it to an upside target of Rs 71 in the near term.”

Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, said, “The counter has a strong resistance near the Rs 65-68 zone and a decisive breach could only trigger next leg of momentum. On the lower end, Rs 54 is likely to act as a crucial support and a breakdown could disrupt the near-term view in the counter. Hence, it is advisable to keep a close watch on the mentioned zone with proper risk management.”

The stock’s 14-day relative strength index (RSI) came at 50.33. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a negative price-to-equity (P/E) ratio of 39.94 against a price-to-book (P/B) value of (-)1.36.

The counter saw heavy trading volume today as around 26.94 lakh shares changed hands today at the time of writing this story. The figure was higher than the two-week average volume of 19.68 lakh shares. Turnover on the counter came at Rs 16.04 crore, commanding a market capitalisation (m-cap) of Rs 4,724.71 crore.

There were 13,93,065 sell orders against buy orders of 4,93,603 shares. As of March 2024, promoters held a 48.27 per cent stake in the airline.

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