Shares of Indian Energy Exchange Ltd (IEX) have fallen over 17% in the last two sessions after the power ministry directed Central Electricity Regulatory Commission (CERC) to implement the process of market coupling in a timely manner.  

The stock closed at Rs 122.60 on Friday against the close of Rs 136.50 on June 7.

In the last session, the stock closed 10.18% lower at Rs 122.60 on BSE. During the session, IEX stock hit a 52-week low of Rs 116.05, down 14.99% against the previous close of Rs 136.50 on BSE. Market cap of IEX fell to Rs 11,017 crore.

In terms of technicals, the relative strength index (RSI) of IEX stands at 15.4, signaling it’s trading in the oversold zone. The stock has a beta of 1.1, indicating high volatility in a year. IEX shares stand lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.  

Total 109.78 lakh shares of the firm changed hands amounting to a turnover of Rs 134.76 crore on BSE.

Sameet Chavan, Head Research, Technical and Derivatives, Angel One said, “IEX is an Indian electronic system based power trading exchange regulated by the Central Electricity Regulatory Commission (CERC). The stock has been a laggard since the last 15 odd months. Stock prices tumbled in the last couple of sessions after the reports said that the power ministry has directed the CERC to undertake the ‘Market Coupling’ mechanism for spot power trading. Technically speaking, we do not see any near-term relief in the prices as the decline is backed by humongous volumes. The stock is trading at new 2-year low and hence, we advise traders to stay away from the stock till the time things do not stabilise.”

Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, “The stock has tanked in the past 2 sessions with heavy erosion witnessed and broken below the previous bottom level of Rs 126 zone weakening the trend and is in a very bearish mode. Some revival can be expected but for the bias to improve would need to cross at least 137 level above which the trend can turn positive to some extent.”

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Since last two years on a weekly scale, the said counter has made lower highs and lower lows structure which resulted into 60 per cent cut in price. For now, avoid IEX since its structure of weekly chart is extremely bearish and there is no sign of any recovery.”

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.