Jet Airways shares jump 37% in 7 sessions; time to buy, sell or hold?

Shares of Jet Airways Ltd rose sharply in Monday's trade, extending their gains for the seventh straight session. The stock jumped 5 per cent today to hit its upper price band of Rs 50.80. The counter has surged 37.22 per cent in seven days. That said, it has declined 28.80 per cent in 2023 so far and 51.46 per cent in the past one year.

Today's jump in the share price came after aviation regulator DGCA renewed its air operator certificate. The Directorate General of Civil Aviation (DGCA) has renewed the Airport Operator Certificate (AOC) of Jet Airways on July 28, the Jalan-Kalrock Consortium said in an official statement.

With the NCLT-approved resolution plan, Jet Airways is currently being revived under the Insolvency and Bankruptcy Code (IBC), with ownership transferred to the Jalan-Kalrock consortium in January this year.

"JKC expresses its heartfelt gratitude to the aviation regulator, the Ministry of Civil Aviation, and all other stakeholders, in showcasing their faith in JKC and in the revival of Jet Airways," the consortium said.

The private carrier suspended its operations in April 2019 due to financial challenges. The renewal of the AOC marks a promising step forward in Jet Airways' journey towards regaining its position in the Indian aviation industry.

Bourses BSE and NSE have put the securities of Jet Airways under the ESM (Enhanced Surveillance Measure) framework. Exchanges put stocks in ESM framework to caution investors about high volatility in share prices.

On technical setup, support on the counter could be seen at Rs 47.

Kush Ghodasara, CMT, said, "The stock has regained volume momentum after positive news on the re-operational move. The stock has finally started trading above the short-term moving averages located at 42.80, which is showing strong momentum. Now, the next hurdle is at the 200-day average situated at Rs 66.40. Buying fresh at current levels seems difficult, but buying on dips can be considered with a stop loss paced at Rs 42.80."

AR Ramachandran from Tips2trades said, "Jet Airways looks bullish on the daily charts with strong support at Rs 47. A daily close above resistance of Rs 52.50 could lead to target of Rs 56 in the near term."

The counter's 14-day relative strength index (RSI) came at 65.12. 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-earnings (P/E) ratio of 0.55 against a negative price-to-book (P/B) value of 0.03.

The scrip has a one-year beta of 0.27, indicating low volatility.

Meanwhile, Indian equity benchmarks traded higher in afternoon deals today, led by gains in technology, metals, energy and automobile stocks.

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