Should you invest in IndiGo stock?:Experts urge caution; ₹4,300 per share forms strong support zone; company’s share prices fall 22% from all time highs

Recent turbulence for Indigo airlines has led to a significant correction in its stock price. Market experts are now offering their advice to retail investors, with a common theme: proceed with caution in the short term, but long-term investors may find an opportunity. Never Catch A Falling Knife S Ravi, founder, Ravi Rajan and Company and former chairman of the Bombay Stock Exchange (BSE), continues to advise retail investors to avoid “catching a falling knife.” He suggests waiting for the airline’s operational volatility to subside before considering an investment. While the long-term outlook for Indian air travel remains positive, potential regulatory actions could impact Indigo’s growth. Volatility Expected to Continue Lovelesh Sharma, CMT CFTe, co-founder, also anticipates continued volatility. He highlights the regulated nature of the airline industry and the government’s increased scrutiny. He believes that, in the short term, investing in IndiGo is risky. ₹4,300 Per Share: A Potential Entry Point? Sharma suggests that long-term investors might consider accumulating Indigo stock around the ₹4300 (+/- 5%) level. He emphasizes that the December quarter results will be crucial in assessing the airline’s recovery. Halder’s Perspective: Strong Base Zone Identified Pradip Halder, founder and CEO of PHD Capital, notes that the stock has already corrected significantly from its all-time high. He points to a strong base zone in the ₹4,300–₹4,450 range. Halder suggests that only long-term investors should consider entering the stock within this range, with a strict stop-loss order at ₹3,800 per share to limit potential losses. Long-Term View: 18-25 Months to New Highs? Halder believes it could take 18-25 months for IndiGo to surpass its previous all-time high of ₹6,225 per share. He sees the current situation as a potential buying opportunity for very long-term investors, emphasizing that such a significant issue has never occurred with the airline before. Can Retail Investors Start SIP At Current Levels? Sharma and Halder both advise caution regarding Systematic Investment Plans (SIPs). They suggest waiting for more clarity from the Aviation Ministry and Indigo before initiating a SIP. The Bottom Line: Patience is Key Experts agree that Indigo’s stock is currently facing challenges. Retail investors should exercise caution, wait for more clarity on the airline’s operational stability and regulatory environment, and carefully consider their risk tolerance before investing. The December quarter results will provide valuable insights into Indigo’s ability to navigate these challenges. Long-term investors with a higher risk appetite may find an opportunity to accumulate the stock at lower levels, but a cautious approach is advised.