SpiceJet shares up 32% in a month; here's what technical charts indicate

SpiceJet shares on Thursday extended their sharp gains for the third consecutive session. The stock jumped 9.83 per cent to hit a fresh one-year high of Rs 48.38. It eventually settled 5.47 per cent higher at Rs 46.46. At this closing price, the scrip has climbed 22.01 per cent in three days. The counter has gained around 31.50 per cent in the past one month and 78.35 per cent in six months.

The stock has been witnessing strong trading volumes in the past few trading sessions. Today, around 2.88 crore shares changed hands today on BSE. The figure was way more than the two-week average volume of 48 lakh shares. Turnover on the counter came at Rs 132.90 crore, commanding a market capitalisation (m-cap) of Rs 3,178.52 crore.

On technical setup, the counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 77.86. 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 5.91 against a negative price-to-book (P/B) value of 0.51.

The scrip has an analyst target price of Rs 38, Trendlyne data showed, suggesting a potential downside of 19 per cent in a year. It has a one-year beta of 0.3, indicating low volatility on the counter.

Analysts said support on the counter could be seen around Rs 38. One of them suggested booking profits at current levels.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "A decisive breach above Rs 45 would confirm a breakout for further targets of Rs 50-52 levels. The near-term support would be maintained near Rs 37, below which the bias can turn little bit weak."

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said "Support lies around Rs 38, below which the counter may plunge to Rs 34. It is advisable to have a cautious approach keeping a close tab on the mentioned levels."

AR Ramachandran from Tips2trades said, "The stock is bullish but also overbought on daily charts. Investors should book profits at current levels as a daily close below support of Rs 37.8 could lead to Rs 30 in the near term."

DRS Finvest founder Ravi Singh also mentioned that support on the counter is in the Rs 38 zone.

Meanwhile, Indian equity benchmarks settled slightly lower today amid a highly volatile trading session.

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

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