SpiceJet Ltd’s shares witnessed a significant uptick in Wednesday’s trading session, marking the fourth consecutive day of gains. The stock surged by 6.79% to reach a day high of Rs 60.88, extending its positive momentum from the previous sessions. This surge comes amidst notable developments in both technical indicators and the airline’s operational expansion plans.
According to technical charts, SpiceJet’s stock is currently trading above its 5-day, 10-day, 20-day, 150-day, and 200-day simple moving averages (SMAs). However, it remains below the 30-day, 50-day, and 100-day SMAs. Analysts suggest that support levels for the stock could be observed in the range of Rs 58 to Rs 54.
The recent rally in SpiceJet’s shares coincides with the company’s announcement of new operational routes. The budget carrier revealed plans to launch daily non-stop flights connecting Delhi and Phuket, scheduled to commence on May 31, 2024. This strategic move aims to expand SpiceJet’s footprint in the international market and enhance connectivity for passengers.
Moreover, the addition of the Delhi-Phuket route complements SpiceJet’s existing services to Bangkok from Kolkata and Delhi. By diversifying its flight network, SpiceJet aims to capture growing travel demand and strengthen its position in key tourist destinations across Southeast Asia.
The announcement of these new routes has contributed to a positive sentiment among investors, reflecting confidence in SpiceJet’s growth prospects despite challenges in the aviation sector. As the airline continues to navigate through the complexities of the post-pandemic recovery phase, strategic expansions and operational efficiencies remain crucial in sustaining its upward trajectory.
