Indigo, SpiceJet are on a breakout and ready to fly higher, charts suggest

A surprising spurt on Indigo share, the Spicejet crossing the resistance indicate breakout in progress.

Shares of Interglobe Aviation, the paremt company of IndiGo gained over 5 per cent in noon deals on Tuesday, a day before the airline starts operating its Hyderabad-Aurangabad flight. The coronavirus-enforced lockdown in late March had led to the suspension of domestic as well as international flights and services were partially restored only in May-end. READ MORE HERE

On the other hand, SpiceJet has plans to induct a wide-body Airbus A340 freighter, which will allow it to operate non-stop flights to Africa, Europe and the Commonwealth of Independent States (CIS) countries. READ ABOUT IT HERE

meanwhile, domestic air traffic grew 6 per cent in July on a month-on-month (MoM) basis amid decline in seat occupancy and restrictions on flight movements in Kolkata. While the number of flights increased in July, compared to June, industrywide load factor declined to 52.7 per cent in July, from 54.8 per cent in June. Airlines flew 2.1 million in passengers in July, against 1.9 million passengers in June. On a year-on-year basis, air traffic fell 82 per cent as total flight movements continue to be around 30 per cent of normal levels. 

Here's how these two stocks look on the technical charts.

InterGlobe Aviation Ltd (INDIGO): With a surprising sudden spurt in Indigo in the last four sessions, the counter is ready to retest the 200-day moving average (DMA) currently placed at Rs 1,175. A decisive close above this would indicate the ability of this counter to gain more momentum ahead. The volumes around the 200-DMA looks subdued, which needs to see an addition for the price to move up convincingly. Going forward, if Indigo does witness surge in volumes, then the stock could climb Rs 1,350 in coming sessions. The Moving Average Convergence Divergence (MACD) has crossed the zero line, suggesting an upward direction with positive momentum is possible. A closing basis support stays at Rs 1,120 levels. CLICK HERE FOR THE CHART
 
SpiceJet Ltd (SPICEJET):  The range of Rs 55 to Rs 53 has become a hurdle for SpiceJet. It did manage to cross the immediate resistance of Rs 48 lately, which could push price towards the hurdle range yet again. The trend appears to be mildly bullish and may see a further boost till it holds Rs 48 levels on the downside. The MACD is crossing the zero line upward; this is an ideal level for the stock to gain strength and move up going ahead on good volumes. CLICK HERE FOR THE CHART