IEX Analysis

Indian Energy Exchange is the largest power exchange in India with automated trading platform for physical delivery of electricity. It has almost 95% market share in electricity trading. It was established in 2008.

IEX has a market capitalization of more than 14,000 crores with almost no debt on it. IEX was able to generate more than 300 crores of profit with a profit growth of almost 31%. This stock has a 3 years CAGR of 58% but 1-year returns are almost -20%. If we check the charts as depicted below, we will find that IEX has already given almost 773% increase in less than 2 years and after that it is now correcting which is almost 50%.

In order to better understand it, consider that IEX move up almost 773 points and now corrected only for 50 points which can be considered as healthy correction.

Growth of 723% in 2 years

Correction in IEX from past 280 days after hitting all time high

As IEX has already broken its long term trendline so IEX can be said in Bearish zone or it can be said that IEX is now correcting after such a strong move. Now, if we go to the weekly charts and check the Fibonacci retracements, we will find that it is in between the 0.5 and 0.618 Fibonacci levels. If IEX corrects more, then it might even touch 147 level too. For now, 180 is the strong resistance point and 147 is the support point. New upward movement can only be predicted only after its closing above 180.

In daily charts, if we check that IEX after a brief downtrend is consolidating broadly between 150 and 180 levels. Generally, when stock consolidates after a brief downtrend then it means that it is building its base before starting its upward movement. So, one should wait for these levels to break before entering in this stock. Though Options writers make use of this consolidation for making profits.

So, fundamentally IEX is a good stock and technically it is consolidating for now. Now, we have to wait for IEX to break these levels most probably upwards or downwards.

Above Information is for educational purpose only. No trades solicited.

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