Shares of SpiceJet Ltd. have shown a significant rebound over the past two trading days, advancing 14.51 percent. On Monday, the stock climbed 6.72 percent to close at Rs 13.18. This recent surge, however, comes after a prolonged period of decline, with the counter still down 55.90 percent on a year-to-date (YTD) basis.
The airline's stock also experienced heavy trading activity on the BSE, with approximately 2.16 crore shares changing hands. This volume is notably higher than the two-week average of 66.38 lakh shares. Turnover reached Rs 28.36 crore, and the company's market capitalization stood at Rs 2,011.40 crore.
Expert Views on SpiceJet's Volatility
Market experts caution that SpiceJet's stock is currently suitable primarily for investors with a high-risk appetite. Ravi Singh, Chief Research Officer at Master Capital Services, highlighted the airline's ongoing struggles.
"SpiceJet is going through a really rough patch right now. They are facing hurdles from lawsuits, cash shortages, and a large number of grounded planes. While they keep dodging bankruptcy by raising fresh funds and striking last-minute deals with leasing companies, their actual day-to-day flying operations are struggling. If we look at the technical charts, it trades very much like a highly volatile penny stock."
Singh added that the share price swings wildly based on news about court rulings or new capital injections. He emphasized that unless the airline can get a significant portion of its fleet airborne and demonstrate consistent profits, it remains a speculative play for aggressive, risk-tolerant traders rather than a long-term investment.
Kranthi Bathini, Equity Strategist at WealthMills Securities, echoed this sentiment, reiterating that the stock is only for those comfortable with high risk.
Technical Outlook for SpiceJet Shares
According to technical analysts, the stock shows mixed signals.
- AR Ramachandran, Sebi-registered research analyst at Tips2trades, noted that SpiceJet's stock is bullish on daily charts, with strong support identified at Rs 12.35. A daily close above the resistance level of Rs 13.6 could potentially lead to an upside target of Rs 15.2 in the near term.
- Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, provided different levels, observing support at Rs 30 and resistance at Rs 33.5. He suggested that a decisive move above Rs 33.5 might trigger further upside towards Rs 35, with an expected short-term trading range between Rs 30 and Rs 35.
The recent gains provide a glimmer of hope for SpiceJet, but the underlying operational and financial challenges continue to make it a highly speculative investment.