IndiGo shares slump 9% this week amid 'double whammy' pressure

InterGlobe Aviation Ltd, the parent of IndiGo, continued to face selling pressure this week as persistent operational disruptions dragged the stock down nearly 9 per cent. On Friday, shares slipped 3.16 per cent to an intraday low of Rs 5,266 before closing 1.22 per cent lower at Rs 5,371.30. The decline follows widespread cancellations linked to a major reboot of the airline’s operational systems.

In his first public statement since the disruptions began, IndiGo CEO Pieter Elbers acknowledged the severity of the situation, confirming that more than 1,000 flights were cancelled on Friday alone -- over half of the airline's daily operations. He said stabilisation could take up to five days, with full normalcy expected by December 15.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said the cancellations are likely to affect the airline's business in the short- to medium-term. "This disruption will impact market sentiment and a depreciating rupee is also expected to weigh on IndiGo's margins. It is a double whammy for the airline. Fresh entries can be avoided in the medium- to short-term, while existing investors may continue to hold given IndiGo's strong market leadership," he stated.

From a technical perspective, support for the stock is seen in the Rs 5,300–5,000 zone, with resistance placed at Rs 5,450–5,695.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, highlighted that IndiGo has corrected nearly 9 per cent this week. "The stock has slipped below the 200-day simple moving average for the first time in a long period, indicating possible structural weakness. Support is expected around Rs 5,100, which could offer some stability. Caution is advisable at this stage," he said.

Drumil Vithlani, Technical Analyst at Bonanza, said the stock has moved into short-term weakness after breaking below the key Rs 5,450–5,500 support zone amid rising selling volumes. "The stock is trading below the 20-EMA and 50-EMA, with momentum turning bearish. Immediate support lies at Rs 5,275–5,300, and if this zone is breached, further downside towards Rs 5,150 and the 200-day EMA near Rs 5,050 is possible. On the upside, Rs 5,450 now acts as strong resistance, followed by Rs 5,530 and Rs 5,695. RSI has dipped to around 28, signalling weakness with no clear reversal yet. Fresh buying should be avoided unless the stock reclaims Rs 5,450 with strength," he said.

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, pegged support at Rs 5,000 and resistance at Rs 5,600. "A firm move above Rs 5,600 may open the door for a rally towards Rs 5,800. The short-term trading range is expected between Rs 5,000 and Rs 5,800," he added.