IEX Shares Drop 17% from 52-Week High: Analyst Insights

Shares of Indian Energy Exchange (IEX) Ltd have seen a notable decline, dropping 17.13% from their recent 52-week high of Rs 244.35. As of today, the stock closed 4.30% lower at Rs 202.50, impacted by concerns over potential market coupling, which could take place by the end of this fiscal year or early next year. Although this information is yet to be confirmed, it has prompted a sell-off in the stock.

IEX's stock is currently trading below key short-term moving averages, including the 5-day, 10-day, 20-day, and 30-day simple moving averages (SMAs), while remaining above longer-term SMAs, such as the 50-day, 100-day, 150-day, and 200-day SMAs. The relative strength index (RSI) stands at 44.09, signaling neither overbought nor oversold conditions.

Technical analysts offer a mixed outlook for IEX. Some predict further declines, but there is cautious optimism about its long-term potential. "Investors can look at accumulating IEX shares if the price dips into the Rs 200-190 range, with potential to reach Rs 450-500 over the next three years," said market expert Raghvendra Singh.

In contrast, market analyst Kush Ghodasara suggests that short-term traders may want to exit, as the stock could experience profit booking until it touches Rs 180. "Technically, IEX has breached support levels on its short- and medium-term moving averages, so further dips may occur," he noted.

Chandan Taparia, Senior VP at MOFSL, observed that IEX has formed a bearish engulfing pattern, signaling caution for investors. He advises waiting for additional price corrections before considering fresh entries.

Despite the recent price action, IEX remains a solid stock for long-term investors, with its automated trading platform facilitating electricity and renewable energy trades, as well as offering green certificates. The company's price-to-equity (P/E) ratio stands at 52.31, and it boasts a return on equity (RoE) of 38.04%, with earnings per share (EPS) of Rs 4.05.