Indian Giant on the Brink of Meltdown
One of India’s largest financial institutions, Infrastructure Lending and Financial Services, which has helped to fuel the growth of the world’s fastest-growing economy over the past 30 years. But now it threatens to, has now helped to bring India to the brink of crisis.
The company is considered systematically important to the health of the economy, since some of its largest stakeholders include the Central Bank of India, the State Bank of India (NSE: SBIN), the largest mortgage lender in India (NSE: HDBFC), and the largest life insurance company in India, which is state-owned.
IL&FS owns or is affiliated with between 170 and 256 smaller companies, depending on the criteria by which they are categorized, and this has made the current crisis difficult to foresee. Its figurehead resigned for health reasons in July, and it began defaulting on its debts in August, the effects of which have taken until mid-September to become apparent.
The BSE SENSEX and the Nifty 50 (NSE: NIFTY) indices have plunged from highs in August, and many brows have been knitted in anticipation of a solution. The IL&FS crisis is only the icing on the cake, really, in the broader context of a nationwide pandemic of bad debt that has caused Reserve Bank of India to force corrective framework on 11 of the 21 government-owned banks in recent months, as well as a falling Rupee (INR:USD).
Momentum Indicator for IFN turns positive, indicating new upward trend
IFN saw its Momentum Indicator move above the 0 level on June 01, 2023. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 78 similar instances where the indicator turned positive. In of the 78 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 52 cases where IFN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IFN advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
IFN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 274 cases where IFN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for IFN moved out of overbought territory on May 16, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for IFN turned negative on May 18, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IFN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
Industry description
General Information
Category Unknown
IFN and
Correlation & Price change
A.I.dvisor indicates that over the last year, IFN has been closely correlated with INDA. These tickers have moved in lockstep 75% of the time. This A.I.-generated data suggests there is a high statistical probability that if IFN jumps, then INDA could also see price increases.
| Ticker / NAME | Correlation To IFN | 1D Price Change % | ||
|---|---|---|---|---|
| IFN | 100% | +0.78% | ||
| INDA - IFN | 75% Closely correlated | +1.02% | ||
| EPI - IFN | 72% Closely correlated | +0.91% | ||
| INDY - IFN | 72% Closely correlated | +0.91% | ||
| DGIN - IFN | 72% Closely correlated | +1.41% | ||
| IIF - IFN | 72% Closely correlated | +0.89% | ||
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