Shares of the Indian Energy Exchange rose 3% to hit a 52-week high on Thursday as technical analysts saw the scrip could move above ₹200 as the stock broke out from the consolidating phase.

What Happened: IEX share price surged to a 52-week high of ₹181.75. The stock took a beat down in June 2023 after reports said the central electrical authority would implement market coupling, diminishing IEX's competitive moat. 

However, the stock has regained ground since then, rising by 43% in the last year. 

In May, IEX's monthly volumes increased by 29% to 10,633 million units while the electricity volume jumped by 21% to 9,568 million units. Elara Securities said the increasing share of short-term power volume would help IEX as India's peak power demand reached an all-time high of 250 gigawatts in May 2024. 

See Also: Vodafone Idea, Suzlon Emerge As Mutual Funds’ Top Midcap Picks In May

Technical Views: Jigar S Patel, senior manager- technical research analyst, Anand Rathi Shares and Stock Brokers said the stock has broken out of its range. 

"In recent weeks, IEX has experienced fluctuations within a defined price range, typically oscillating between 130 and 160. However, this week, it has decisively broken out of this range and remained consistently above it. Additionally, consolidation has been observed around the 200 EMA, indicating strength. On the indicator front, the Weekly RSI has maintained its 40 level throughout the consolidation period, further affirming our bullish outlook. Consequently, we recommend initiating a long position within the range of 174-184, with an upside target of 240 and a stop-loss set near 147 on a daily close basis." said Patel. 

"IEX has given a rounding bottom pattern breakout on the weekly chart, suggesting a rise in optimism. Additionally, the weekly RSI is in a bullish crossover with a reading above 60. In the short term, it has the potential to move towards 200, with support placed at 170.", Rupak De, senior technical analyst, LKP Securities.

Price Action: IEX share price rose 3.24% to ₹179.24 on Thursday afternoon.

Read Next: Sobha Shares Surge 5% To All-Time High After Fundraising Approval