SpiceJet shares hit one-year high, up 16% in two sessions; will this upmove sustain?

SpiceJet shares continued their strong upward move for the second straight session on Wednesday. The stock today jumped 10.68 per cent to hit a one-year high of Rs 44.56. It eventually settled 9.41 per cent higher at Rs 44.05. At this closing price, the scrip has climbed 15.68 per cent in two days. The counter has gained 26.95 per cent in the past one month and 82.33 per cent in six months.

The stock saw strong trading volumes today as nearly 2.44 crore shares changed hands on BSE. The figure was way more than the two-week average volume of 24.90 lakh shares. Turnover on the counter stood at Rs 104.48 crore, commanding a market capitalisation (m-cap) of Rs 3,013.64 crore.

On technical setup, support on the counter could be seen at Rs 38 and resistance may be witnessed around the Rs 48-odd zone. An analyst suggested booking profits at current levels.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said "SpiceJet has gained traction in the last couple of trading months. The counter is placed at the crucial juncture of resistance at Rs 43-45 sub-zone. A decisive breakthrough could only trigger momentum. On the downside, immediate 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 with next resistance at Rs 47.2. 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 said, "The stock has resistance around Rs 48 level. Support on the counter is at Rs 38."

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 73.66. 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 12 per cent in a year. It has a one-year beta of 0.3, indicating low volatility on the counter.

(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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