Spicejet corrects on profit selling

4 Aug 2022 , 11:45 AM

Shares of Spicejet surged 35.41% in the past four sessions to end at Rs 50.10 on 3 August 2022 from its recent closing low of Rs 37 on 28 July 2022. The recent rally was triggered after the low-cost airliner announced this week that it entered into a full and final settlement with the Airports Authority of India (AAI). It said it cleared all outstanding principal dues of the airport operator. With this, SpiceJet will no longer remain on cash and carry at AAI run airports across the country and will revert to advance payment mechanism for daily flight operations. Further, AAI will release SpiceJets Rs 50 crore bank guarantee following the airline clearing all its principal dues. This will result in additional liquidity for the airline. On the technical front, the stocks daily RSI (relative strength index) stood at 68.99. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30. On the daily chart, the stock was trading above its 50-day simple moving average (SMA) placed at 41.60. These level will act as near-term support. It was below its 100-SMA and 200-SMA placed at 48.14 and 57.53, respectively. SpiceJet is an IATA&8208;IOSA certified airline that operates a fleet of Boeing 737s, Q&8208;400s & freighters. It is the countrys largest regional player operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airlines fleet offers SpiceMax, the most spacious economy class seating in India. The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering safe, on&8208;time, efficient and seamless cargo connectivity across India and on international routes. On consolidated basis, the air carrier reported a net profit of Rs 42.47 crore as against a net loss of Rs 66.78 crore. Revenue from operations rose 34.8% year on year to Rs 2204.68 crore in the quarter ended 31 December 2021. Powered by Capital Market – Live News