INTERGLOBE AVIATION (INDIGO)

Technical:
• After reaching a fresh high of near 5,000, the stock has reversed from that level, indicating a potential change in character, a term often used in technical analysis to denote a shift in trend or momentum.
• The RSI (Relative Strength Index) has dropped below 50, signaling a potential weakness in momentum and a bearish outlook in the near term.
• Support Levels:
• Minor support is at 4,500, a level that may provide temporary relief.
• Major support lies at 4,200, a critical level to watch if the weakness continues.

Fundamental:
• The escalating conflict between Israel-Iran has driven up crude oil prices due to concerns about supply disruptions.
• As a major airline, IndiGo is sensitive to rising fuel costs, which directly impacts its operational expenses. The increase in crude oil prices might weigh heavily on the stock in the near term, adding to the existing technical weakness.
• Given the geopolitical situation and its impact on crude prices, IndiGo could face additional selling pressure if oil prices remain elevated, further amplifying its decline.

In summary, IndiGo is showing signs of technical weakness with bearish momentum indicators, coupled with fundamental risks tied to rising crude oil prices, which could lead to more downside pressure in the coming days. Keep an eye on the 4,200 level for strong support. View neglected if price breaks above 5,000 zone.

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