Shares of Indian Energy Exchange (IEX) Ltd have declined 17.13 per cent from their one-year high value of Rs 244.35, a level seen yesterday. The stock today settled 4.30 per cent lower at Rs 202.50.
The sudden drop in IEX's share price came after a news report claimed that market coupling would be implemented by the end of the current fiscal or the beginning of the next fiscal. However, Business Today could not independently verify this information.
A few technical analysts suggested that the counter may slip further. However, one of them said investors can consider accumulating it in the Rs 200-190 range.
"One can consider buying the stock in the Rs 200-190 zone. IEX has potential to hit Rs 450-500 levels over the next three years," market expert Raghvendra Singh told Business Today TV.
"IEX is a good stock on a long-term basis. But it has seen a rally in the short term. Since May's expiry level of Rs 136, we have seen continuous week-on-week new higher levels. Technically, the stock has breached all support levels of short- and medium-term moving averages. We may see a profit booking till Rs 180 level. Short-term traders and investors can exit this stock," said market expert Kush Ghodasara.
"The stock has seen a decent uptick in the near term. At present, it has formed a bearish engulfing pattern. For fresh entry, investors should wait for further dips," said Chandan Taparia, Senior VP, Equity Derivatives & Technical, Broking & Distribution at MOFSL.
The counter traded lower than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150-day and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 44.09. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 52.31 against a price-to-book (P/B) value of 19.91. Earnings per share (EPS) stood at 4.05 with a return on equity (RoE) of 38.04.
IEX is engaged in providing an automated trading platform for the physical delivery of electricity, renewables, and certificates. It offers various trade markets, such as the electricity market, green market and certificates.