Airline stocks Indigo, SpiceJet surge 10% on India-Pakistan ceasefire. Should you buy, sell or hold?

Shares of InterGlobe Aviation (Indigo) and SpiceJet surged by 10% during Monday's trading session after India and Pakistan announced on Saturday that they had reached an agreement to halt all military actions and firings on land, air, and sea.

The reduction in border tensions between India and Pakistan has reportedly raised expectations for the normalization of airline operations.

This development followed India's initiation of ‘Operation Sindoor’ on May 7, aimed at targeting terror infrastructure located in Pakistan and Pakistan-occupied Kashmir, in response to the terror attack in Pahalgam.

Investor confidence received an extra boost when the government permitted operations at 32 airports, including those in border regions of Jammu and Kashmir and Punjab, which had been temporarily closed due to the military conflict with Pakistan. The Notice to Airmen (NOTAM) was issued just two days after both nations agreed to cease military activities.

The stock market indices also saw a significant rebound on Monday, with the Sensex increasing by 2,500 points and the Nifty 50 exceeding the 24,700 mark, as the easing of geopolitical tensions between India and Pakistan, alongside encouraging US-China trade discussions, improved investor sentiment. This represents the largest one-day gain in the past 11 months.

Should you buy, sell or hold?

Indigo share price today opened at ₹5,434.70 apiece on the BSE, the stock touched an intraday high of ₹5,599 apiece, and an intraday low of ₹5,413.60 per share. Anshul Jain, Head of Research at Lakshmishree Investments said that Indigo share price opened with a bullish gap-up, briefly testing the breakout zone near ₹5,600.

“For fresh upward momentum, it must sustain above this key level—doing so could trigger a move toward the ₹6,000 mark. Traders should watch for strong follow-through buying above ₹5,600 to confirm the breakout. On the downside, ₹5,375 remains a crucial support level; any dip toward it may attract buying interest. momentum traders should stay alert for volume spikes near these zones,” advised Jain.

SpiceJet share price opened at ₹46.20 apiece on the BSE, the stock touched an intraday high of ₹47.69, and an intraday low of ₹45.94 per share. Anshul Jain explained that SpiceJet share price has been stuck in a tight range between ₹42 and ₹52 for the past 88 days, with no clear breakout in sight. Range traders can consider playing the extremes, but overall, such setups remain tricky and less rewarding.

“For directional clarity, fresh long positions should only be considered on a confirmed breakout above ₹52. Until then, caution is advised, as the stock continues to consolidate without strong cues. Wait for momentum to return before acting,” added Jain.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.