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What is the technical outlook for the Indigo February futures? – Bhavneet Goyal
InterGlobe Aviation (₹3,179): The stock ofInterGlobe Aviation (Indigo) is in an uptrend and so is its futures contract. The chart shows that the likelihood of further rally is high.
Particularly, the Indigo February futures, which closed on par with the stock at ₹3,179, exhibit bullishness. In early February, it fell after marking a high of ₹3,314.2. But it found support at ₹3,040 and resumed the upswing. At that time, both 20- and 50-day moving averages coincided within the price range of ₹3,020 and ₹3,050, making it a strong base.
Bouncing off the above-mentioned support, Indigo Feb futures surpassed a resistance at ₹3,150 last Friday. This has improved the odds for the extension of the current leg of rally.
In the near-term, we expect the contract to the price band of ₹3,280-3,300.
But note that the contract is nearing expiry. So, even though it is likely to rise, it may not reach ₹3,300 before it expires. So, if you’re holding longs on Indigo Feb futures, plan your trade accordingly.
Also, it is worth noting that futures and options contracts of stocks are compulsory delivery. So, if you do not intend to take delivery of Indigo shares, you should exit before the contract expires.
Send your queries to derivatives@thehindu.co.in
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