IndiGo stock may rally to Rs 2,800, SpiceJet remains sluggish on charts

Technical chart of InterGlobe Aviation appears promising, with price action heading towards Rs 2,800. SpiceJet remains underperformer.

India’s largest airline, InterGlobe Aviation, on Tuesday set a new historic peak post ordering a fleet of 500 Airbus aircraft on June 19, making it the largest purchase agreement in the history of aviation. The biggest deal will place shares of InterGlobe Aviation in the limelight for coming sessions.

So far this year, the stock has surged 21 per cent and is trading with a strong upward bias. The optimistic sentiment has been resilient since late April this year, wherein the stock witnessed majority of its gains. 

SpiceJet, Its listed rival, has been doing well lately; the stock has plunged 19 per cent since the beginning of the year and trades with extreme negative sentiment. 

Here’s the technical outlook for aviation stocks following Indigo’s largest order:-
 

InterGlobe Aviation Ltd (INDIGO) 

Likely target: Rs 2,800

Upside potential:  14%

Until the support of Rs 2,280 is protected, the upside bias is likely to see higher levels in the coming sessions. The overall trend is headed in the direction of Rs 2,800, as per the daily chart.

Monthly chart firmly indicates a breakout over the previous all-time high of Rs 2,380, which is now taken out with aggressive chart structures on weekly and daily. The medium-term uptrend has a support of Rs 2,200-mark. CLICK HERE FOR THE CHART

SpiceJet Limited (SPICEJET LTD)

Outlook: Needs to cross the 200-DMA

Shares of SpiceJet have been on a downward spiral since early 2022 and continue to trade with a pessimistic bias. The trend has been against the overall mood of the benchmark indices. While the domestic market is nearing to hit a new historic peak, SpiceJet counter continues to hit new 52-week low.

The stock needs to surpass the 200-day moving average (DMA) set at Rs 38.55 to recoup the negative bias, and only upon that the price movement could see resurrection. Until this occurs, the stock would not be noticed by the trading community.  

The 200-DMA is placed at Rs 38.60 and once crossed; the positive bias might see Rs 45 to Rs 50 range.  CLICK HERE FOR THE CHART