The sharp decline followed the Central Electricity Regulatory Commission’s (CERC) decision to approve market coupling in the day-ahead market segment—a move expected to dilute IEX’s dominant position in electricity price discovery.
The stock, which was already under pressure in recent sessions, opened with a significant gap-down and hit its lower circuit limit, triggering widespread investor concerns.
The regulatory change is viewed as a structural shift in the power trading landscape, leading to a marked shift in market sentiment around IEX.
What should investors do now?
Amid the steep correction and regulatory headwinds, analysts are advising caution on fresh positions while outlining key levels for existing investors to monitor.
Ajit Mishra, SVP – Research at Religare Broking, noted that IEX has declined sharply following the CERC’s approval of market coupling, dragging the stock to a four-month low.“Going forward, the Rs 120–Rs 140 zone is expected to offer strong support, while the Rs 170–Rs 180 zone may act as resistance during any recovery attempts,” he said.He added that existing investors should manage their positions based on these key levels, while fresh investors are advised to stay on the sidelines and wait for signs of price stability before considering any entry.
Hardik Matalia, Derivative Analyst at Choice Broking, stated, “Today’s sharp gap-down breakdown not only breached the consolidation zone but also broke below key swing lows, confirming a fresh leg of weakness.”
He added that the Relative Strength Index (RSI) is now at a deeply oversold level of 17.68, signaling persistent selling pressure and no immediate signs of reversal.
Matalia advised that short-term traders avoid fresh buying at current levels. “For those already holding the stock, any bounce should be used to exit, as the recent regulatory move may continue to weigh on IEX’s price performance in the near term,” he said. He also recommended that investors considering fresh long positions should wait for further clarity and signs of price stabilization.
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, identified Rs 150 as a critical support level. He pointed out that this area aligns with both the anchored volume profile and the yearly S3 Camarilla pivot, suggesting a possible technical base.
“Analysts suggest adopting a wait-and-watch approach for the next 4–5 sessions, as the stock may attempt to stabilize and form a base in the Rs 140–150 zone before any meaningful reversal,” Jigar said.
As of 12:40 p.m., shares of IEX remained locked in their 26% lower circuit.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
On Thu, Jul 24, 2025 at 12:41 PM Nishtha Awasthi nishtha.awasthi@timesinternet.in> wrote: