IEX shares are trading higher than the 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages Shares of Indian Energy Exchange (IEX) slipped 9% in the last 30 minutes of trade on Thursday amid reports that the power ministry has directed Central Electricity Regulatory Commission (CERC) to implement the process of market coupling in a timely manner.
Market coupling refers to forming of a single power trading entity owned by the government where price discovery will happen with power getting dispatched to short-term power trading platforms including IEX among others.
IEX is a market leader and has the highest volumes in terms of power trading.
This will dry up volumes in a significant manner for IEX among other power trading platforms, fear analysts. This led to the crash in the IEX stock in the current session.
IEX stock hit an intraday low of Rs 135.40, down 8.97% against the previous close of Rs 148.75 on BSE. Later, the stock closed 8.24% lower at Rs 136.50 on BSE.
In terms of technicals, the relative strength index (RSI) of IEX stands at 36.8, signaling it's trading neither in the overbought nor in the oversold zone. The stock has a beta of 1, indicating low volatility in a year. IEX shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Total 22.95 lakh shares of the firm changed hands amounting to a turnover of Rs 32.32 crore on BSE. Market cap of the firm fell to Rs 12,266 crore.
Abhijeet from Tips2trade said, "Market coupling mechanism for spot power trading by CERC, which will see better and lower pricing for consumers in general has led to a sharp fall in IEX stock price with next support at Rs 132.7 on the Daily charts. Till Daily close above resistance of Rs 140.6 is not achieved, investors should not buy at current levels."
Indian Energy Exchange is engaged in providing an automated trading platform for the physical delivery of electricity, renewables, and certificates. It offers various trade markets, such as the electricity market, green market and certificates. The electricity market includes day-ahead market, term ahead market, real-time market and cross border electricity trade. The green market includes green term ahead market and green day-ahead market.