Indigo Shares: SEBI RA Sees Over 10% Upside If It Breaks Out Above ₹5,400

While InterGlobe Aviation (IndiGo) is fundamentally strong and well-positioned for long-term growth, its daily technical charts suggest a possible consolidation around the ₹5,200 level, according to SEBI-registered analyst Deepak Pal.

The stock is currently trading in a tight range between its 14-day and 55-day exponential moving averages (EMA), indicating consolidation.

Indigo's stock is facing resistance at around ₹5400, while ₹5200 appears to be a key support zone. However, if the stock makes a decisive breakout above ₹5,400, it could potentially rise toward ₹5,600, Pal said.

Recent turbulence in the aviation sector, triggered by the Air India crash in Ahmedabad, has created short-term pressure on airline stocks. If positive sentiment returns in the sector and momentum builds, the stock could rally toward ₹6,000 over the long run, he noted.

Fundamentally, IndiGo looks strong, backed by its focus on cost optimization and improving profitability, according to Pal.

IndiGo is India's largest airline with a 60% share of the domestic aviation market and a fleet of over 360 aircraft.

In FY24, it posted a record profit of more than ₹8,200 crore and a revenue of approximately ₹62,000 crore. Backed by a healthy cash reserve of ₹21,000 crore and moderate debt, the airline continues to expand internationally while maintaining high load factors and a cost-efficient model.

Pal said that despite near-term risks from fuel price volatility and global geopolitical uncertainties, IndiGo's long-term prospects remain robust.

The retail sentiment on Stocktwits on Indigo remained 'bullish'.

At the time of writing, the stock edged marginally higher to ₹5,289.50. Year-to-date, IndiGo shares have climbed 16%.

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