Shares of Indian Energy Exchange (IEX) have been trading near the support zone of Rs 138 in the last few sessions. They have corrected after breaching immediate resistance of Rs 140 in the previous session. On a year-to-date basis, the shares of IEX have tumbled 45%. In the current trading session, IEX stock has remained below the previous session’s close, signaling bearish sentiment in the stock. IEX stock, which closed at Rs 139.60 on December 28, hit an intraday low of Rs 137.35 on BSE.
Shares of IEX have fallen today after three sessions of gain. IEX shares are trading higher than the 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages. The stock is trading in the red zone in terms of seven out of eight simple moving averages. Till date, the IEX stock has lost 50% from its 52-week high of Rs 271.95 hit on January 13, 2022.
At 12:46 pm, the IEX stock was trading at Rs 138.25 on BSE. Total 1.93 lakh shares of the firm changed hands amounting to a turnover of Rs 2.67 crore on BSE. Market cap of the firm stood at Rs 12,419 crore. It has high has a one-year beta of 1.2, indicating high volatility during the period. IEX has a high PE ratio of 41.21 against the industry PE of 33.21.
Recently, the energy exchange platform was in news after the firm said it has incorporated a subsidiary to explore business opportunities in the voluntary carbon market. The wholly owned subsidiary company is named International Carbon Exchange Private Limited (ICX).
In the second quarter of the current fiscal, IEX reported a nearly 7 per cent fall in its consolidated net profit at Rs 71.20 crore against net profit of Rs 77.38 crore for the quarter ended September 30, 2021. Total income declined to Rs 113.77 crore in the quarter from Rs 122.30 crore in the same period a year ago.
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Here’s a look at what analysts said about the prospects of the stock and is it a good buy in the current market position.
Abhijeet from Tips2trade said, “IEX is extremely oversold both on Daily & Weekly charts. It needs to have a Weekly close above Rs 152.4 to gain momentum and move up to Rs 176-230. Strong support can be seen at Rs 130.”
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, “IEX on weekly chart has corrected from Rs 300 levels to now at Rs 130 levels. RSI shows positive divergence can bounce to 150 levels for now. The daily chart has indicated weakness and only a decisive move past the Rs 144 zone would improve the bias and can anticipate for further rise. Overall, the resistance zone is quite strong near Rs 150-152 levels and a decisive breakthrough is needed to trigger for fresh upside targets.”
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said, “IEX has witnessed a 60% correction from its all-time high of Rs 335 it touched in October, 2021. On all-time frame charts, the stock is appearing oversold, and a pullback appears highly probable from a medium-term perspective. We believe that the stock is in the process of forming a long-term bottom for itself and has more upside potential than downside. On the way up, the initial target is placed at Rs 172 levels where resistance in the form of the 200-day moving average is placed and beyond that the upside can extend till Rs 208 levels which is the 38.2% Fibonacci retracement level of the fall from Rs 335 – Rs 129 levels.”
Indian Energy Exchange 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. The electricity market includes day-ahead market, term ahead market, real-time market and cross border electricity trade. The green market includes green term ahead market and green day-ahead market.
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