GAIL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.7

GAIL presents a moderate swing trading opportunity with solid fundamentals, attractive yield, and signs of technical consolidation. While the momentum isn't electrifying, the low downside risk and income potential make this a cautious but worthy candidate for a short-term play.

🧾 Fundamental Snapshot

Valuation & Returns

P/E: 12.4 vs Industry PE: 14.4 → Slightly undervalued

EPS: ₹17.7, Book Value: ₹129 → Reasonable intrinsic strength

PEG: -2.56 → Indicates uneven or slowing growth

Profitability

ROE: 13.0%, ROCE: 14.0% → Solid capital returns

Dividend Yield: 4.10% → Among the better-paying stocks in this category

Financial Health

Debt-to-Equity: 0.25 → Stable structure

Quarterly PAT dropped slightly → Short-term pressure, long-term stability intact

📉 Technical Setup

Price Action

Current: ₹183 slightly below DMA 50: ₹186 and DMA 200: ₹187 → Consolidation zone

Indicators

RSI: 43.9 → Slightly weak but not oversold

MACD: -1.43 → Bearish but flattening out

Volume Surge: High activity suggests renewed attention

52W Index: 33.9% → Room to rally if trend reverses

🎯 Swing Trade Strategy

With MACD flattening and RSI near balance, the setup favors an entry on dip, anticipating stabilization or reversal.

✅ Optimal Entry Price

Buy Range: ₹178–₹182 Ideal entry near short-term support zone with minimal downside.

🚪 Exit Strategy

Target Price: ₹195–₹200 Near psychological resistance and short-term breakout level.

Stop-Loss: ₹172 Cut losses below recent support and risk zone.

Already holding? → Watch price action near ₹195–₹200 for exit. → If momentum strengthens and RSI climbs above 55, consider trailing stop-loss to ride a breakout.

If you'd like, I can scan for similarly undervalued dividend plays that are nearing reversal zones. Let me know your sector preference and I'll line them up.

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