IEX shares have fallen for two consecutive days; is this a good time for investors to get in?

On BSE, IEX shares ended the day 10.18 percent lower at Rs 122.60. The stock fell 14.99% from its previous BSE close of 136.50 to 116.05 during the trading session, marking a 52-week low for the security.

Shares of Indian Energy Exchange Ltd. (IEX) have dropped by more than 17% in the last two trading sessions, after the power minister told the Central Electricity Regulatory Commission (CERC) to speed up the process of market coupling. On Friday, the stock finished at Rs 122.60, down from Rs 136.50 on June 7.

On BSE, the stock ended the last session 10.18% lower, at Rs 122.60. During the session, IEX stock hit its 52-week low of Rs 116.05, which was 14.99% lower than its previous close of Rs 136.50 on BSE. The value of IEX on the market dropped to Rs 11,017 crore.

Technically, IEX’s relative strength index (RSI) is 15.4, which means it is trading in the oversold zone. The stock’s beta is 1.1, which means that it will be very volatile over the next year. The 5 day, 20 day, 50 day, 100 day, and 200 day moving averages are all lower than the price of IEX shares. On BSE, a total of 109.78 lakh shares of the company were traded, which led to a turnover of Rs 134.76 crore.

Angel One’s Head of Research, Technical, and Derivatives, Sameet Chavan, said, “The Central Electricity Regulatory Commission (CERC) oversees IEX, an Indian computer system for trading power. Since about 15 months ago, the company has been a loser. Reports that the power minister has told the CERC to use the “Market Coupling” mechanism for trading spot power have caused stock prices to drop in the last couple of trading sessions. From a technical point of view, we don’t see any relief in the prices in the near future because the drop is being supported by huge amounts. The stock is selling at a new 2-year low, so we recommend that traders stay away from it until things get better.

Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said, “The stock has plummeted in the last two sessions, and it has broken below the previous bottom level of Rs 126, which weakens the trend and puts it in a very bearish mode.” Some sort of comeback is possible, but the bias would have to go above the 137 mark for the trend to turn in a positive direction.

Jigar S. Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, stated: “On a weekly scale, the abovementioned counter has established lower highs and lower lows structure, which resulted in a 60% decrease in price. For now, you should stay away from IEX because its weekly chart structure is very bearish and there are no signs of a comeback.

Indian Energy Exchange is in the business of offering an automated trading tool for the physical delivery of electricity, renewables, and certificates. It has different places for trading, like the electricity market, the green market, and certificates. There are day-ahead markets, term-ahead markets, real-time markets, and markets for trading power across borders. Green term ahead market and green day-ahead market are both parts of the green market.



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