Will ATF price hike, Jet Airways' return hurt IndiGo, Spicejet's stocks?

Aviation stocks have held their ground so far this week even as the government hiked jet fuel prices by a steep 5.3 per cent - the tenth straight increase this year - to an all-time high, early this week. 

The price of aviation turbine fuel (ATF) -- the fuel that helps aeroplanes fly -- was hiked by Rs 6,188.25 per kilolitre, or 5.29 per cent, to Rs 1,23,039.71 per kl (Rs 123 per litre) in the national capital, according to a price notification of state-owned fuel retailers. READ MORE

Separately, Jet Airways has inched closer to its second stint as it conducted its first set of three proving flights on Sunday. The airline plans to restart commercial flight operations in July-September quarter this year, according to a PTI report.

Yet, shares of InterGlobe Aviation have jumped 8.1 per cent over the past three days, while those of SpiceJet have rallied 7 per cent. 

On Wednesday alone, shares of Jet Airways gained over 2 per cent and have soared 21 per cent so far in May. InterGlobe Aviation and SpiceJet, too, witnessed positive spikes and surged upto 5 per cent.

Against these fundamental developments, here's how the stocks look on charts:

InterGlobe Aviation Ltd (INDIGO)

Likely target: Rs 1,800 and next at Rs 1,946

Upside potential: 4% to 11%

While InterGlobe Aviation shares have been trading below their 200-day moving average (DMA) with firm negative bias, one cannot neglect a bounce from the oversold territory of the Relative Strength Index (RSI). Over the last four to five occasions, the stock has managed to reverse near or under the oversold territory of RSI, as per the daily chart's setup. The immediate hurdle falls at Rs 1,800 and next at Rs 1,946 mark, whic is its 200-DMA. The support comes at Rs 1,650-mark, which needs to be considered on the closing basis.  CLICK HERE FOR THE CHART

SpiceJet Limited (SPICEJET LTD)

Outlook: Needs to conquer Rs 55

Since early January 2021, the shares of SpiceJet have been on a downward spiral. The stock has tumbled almost 50 per cent, hitting fresh 52-week lows since then. At present, a move from the oversold territory of RSI could see some upside. However, until Rs 55 is not conquered with volume support, the trend could be dicey. Support comes at Rs 46 levels. CLICK HERE FOR THE CHART

Jet Airways (India) Ltd (JETAIRWAYS)

Likely target: Rs 141

Upside potential: 30%

Jet Airways has crossed the 200-weekly moving average (WMA) for the first time since mid-2018, a period of almost 4 years, which indicates an underneath positive bias. The 200-WMA is placed at Rs 103.65 levels. If the stock manages to sustain above 200-WMA, the strength and momentum could see added interest of market participants and the stock price may head in the direction of Rs 141 levels, its next crucial hurdle, shows the weekly chart. CLICK HERE FOR THE CHART