IEX shares dive 16% in two days; here's what technical charts suggest

Shares of Indian Energy Exchange Ltd (IEX) on Thursday continued their sharp decline for the second straight session. The stock plunged 6.76 per cent to settle at Rs 137.30. At today's closing price, the scrip has plunged 16.31 per cent in just two trading days.

IEX shares began falling after it was reported that the government would implement the market coupling mechanism soon in the sector. In an interview with Zee Business, Union Minister RK Singh mentioned that market coupling -- or a uniform market clearing price for buyers and sellers in all exchanges operating in an area -- will be implemented soon.

Technical analysts said immediate support on the counter could be seen around the Rs 130 zone. A drop below the said support level can bring in more pain. On the higher side, resistance will be at Rs 140, followed by Rs 145 and Rs 150 levels.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has plunged heavily. Next major and crucial support zone is at Rs 120-122 levels, which if broken can turn the situation into worse. A decisive breach above Rs 150 is necessary to improve the overall bias and only then traders can anticipate for a further rise."

AR Ramachandran from Tips2trades said, "IEX looks bearish on daily charts with strong support at Rs 131. A daily close below this support could lead to target of Rs 124 in the near term. Strong resistance will be at Rs 145.8."

DRS Finvest founder Ravi Singh said, "The stock is looking weak and may slip towards Rs 130 level. Resistance will be seen around the Rs 140 zone."

The counter traded lower than the 5-day simple moving average (SMA) but higher than the 10-day, 20-, 30-, 50-, 100-, 150- and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 31.53. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 42.21 against a price-to-book (P/B) value of 15.40.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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