IEX shares jump 3% ahead of share buyback decision; PL sees stock at Rs 175 in short-term

Shares of Indian Energy Exchange (IEX) gained 3 per cent in Friday’s trade ahead of the company’s board meet to consider a share buyback plan. Brokerage Prabhudas Lilladher (PL) sees strong momentum on the stock and expects IEX shares to hit 175 in the near future.

Vaishali Parekh, Vice President for Technical Research at PL said the stock had been in consolidation for quite some time but has indicated a Triangular Breakout. Moving past the significant 50EMA level of Rs 146 has further improved the trend, she said adding further rise for the scrip in the coming days.

“With the chart looking good, which is quite in the oversold zone, we see immense upside potential. It can continue with the positive move. The RSI indicator is well placed and is on the rise to indicate strength. We recommend a Buy in this stock for an upside target of Rs 175, keeping a stop loss at Rs 144,” She said in a note.

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The stock rose 2.78 per cent to hit a high of Rs 151.15 on BSE.

Market veteran Shyam Sekhar recently in a tweet wondered whether the company board was failing minority shareholders.  Sekhar suggested that IEX’s recent 2:1 bonus issue reduced shareholder value. He said the bonus issue failed, wondering whether the buyback will also fail.

This is what he said recently:

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