IEX shares plunge to 52-week low; fall for two consecutive sessions

Shares of Indian Energy Exchange Ltd (IEX) slipped 10% in early trade on Friday after the power ministry directed Central Electricity Regulatory Commission (CERC) to implement the process of market coupling in a timely manner.   

IEX stock hit a 52-week low of Rs 122.85, down 10% against the previous close of Rs 136.50 on BSE. Market cap of the firm fell to Rs 11,040 crore.  

In terms of technicals, the relative strength index (RSI) of IEX stands at 22.6, signaling it's trading in the oversold zone. The stock has a beta of 1.1, indicating high volatility in a year. IEX shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.   

Total 8.52 lakh shares of the firm changed hands amounting to a turnover of Rs 10.58 crore on BSE.

Watch: IEX shares in a free fall, tank another 15% to fresh 52-week low; what's dragging the stock, and should you buy? 

Abhijeet from Tips2trade said, "Market coupling mechanism for spot power trading by CERC, which will see better and lower pricing for consumers in general has led to a sharp fall in IEX stock price with next support at Rs 132.7 on the Daily charts. Till Daily close above resistance of Rs 140.6 is not achieved, investors should not buy at current levels."   

Indian Energy Exchange is engaged in providing an automated trading platform for the physical delivery of electricity, renewables, and certificates. It offers various trade markets, such as the electricity market, green market and certificates. The electricity market includes day-ahead market, term ahead market, real-time market and cross border electricity trade. The green market includes green term ahead market and green day-ahead market.

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