Analyst recommends buy on InterGlobe Aviation, SpiceJet – See triggers, price targets, top trading strategy

Aviation sector stocks are expected to remain in focus in the near to medium term with unlock theme now at the centerstage. Growing vaccination rate has increased the appetite for travel, Nilesh Jain, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking, said. He was bullish on InterGlobe Aviation Limited and SpiceJet Limited. 

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Sector Indicators 

1. Indian Ministry of Civil Aviation has allowed airlines to operate flights at 85 per cent capacity from an earlier 72.5 per cent. 
2. A DGCA (Director General of Civil Aviation) data showed that passenger growth jumped 136.6% last month 
3. Prime Minister Narendra Modi has said that the Government will be focusing on states with tourism potential. The Government will endeavour to fully vaccinate the population of such states. 
4. Growing Vaccination. 

Stocks to Watch  

1. InterGlobe Aviation 

1. Jain said that InterGlobe Aviation is a stock with great potential. His advice for existing investors is to hold it for the target price of Rs 2500. There is an upside of Rs 350 from the current levels, he added. The support on this stock is Rs 2050.  
2. No fresh positions should be made in this stock as the stock is trading near its 52-week highs, he further said. 
3. The right levels to enter this stock is Rs 2100, Jain said.         
4. The stock was trading at Rs 2160.05 on the NSE on Monday at 2:15 pm, down by almost 1.6 per cent from the Friday closing price. 
5. 52-week high is Rs 2273.95 which it attained on 17 September. Meanwhile, 52-week low is Rs 1180.85 which it hit on 24 September.    

2. SpiceJet  

1. Jain recommends a Buy at current levels, says the stock looks strong on the technical charts. 
2. He said that it is trading near its breakout levels of Rs 84.  
3. Once this level is breached, the upside will open for levels between Rs 90 and Rs 95. 
4. The stock was trading at Rs 80 on the NSE on Monday at 2:15 pm, up by almost 1.8 per cent from the Friday closing price. 
5. The 52-week high is Rs 108 it achieved on 11 December 2020 while the 52-week low is Rs 45.95, it hit on 25 September 2020. 
6. It has been a laggard and is poised well for an upward move, he added.