GAIL - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.9

📈 Analysis: GAIL presents a moderately strong swing trade setup. The current price of ₹182 is right at the 200 DMA and slightly above the 50 DMA (₹179), suggesting a potential support level. RSI at 54.1 and MACD at 1.39 indicate neutral-to-bullish momentum. The stock trades below industry P/E (14.7 vs 16.5), offering valuation comfort. Strong ROCE (15.3%) and ROE (14.1%) reflect operational efficiency. However, the negative PEG ratio and recent profit contraction (-17%) warrant caution. Institutional activity is mixed, with FII reduction and DII increase.

🎯 Optimal Entry Price: ₹178–₹182 (near DMA support)

🚪 Exit Strategy (if holding): Consider exiting near ₹200–₹210 or if RSI crosses 65 with weakening volume.

✅ Positive

• 📈 Price near 50 & 200 DMA — potential support zone
• 📊 Strong ROCE (15.3%) and ROE (14.1%) — efficient capital use
• 💰 High dividend yield (4.13%) — attractive for income seekers
• 📉 P/E below industry average — valuation comfort
• 📈 DII holding increased (+0.95%) — domestic institutional support

⚠️ Limitation

• 📉 RSI and MACD show only mild momentum — no strong breakout yet
• 📉 Negative PEG ratio (-5.09) — poor growth valuation
• 📉 Quarterly profit contraction (-17%) — earnings volatility
• 📉 FII holding reduced (-1.19%) — foreign investor caution

📰 Company Negative News

• No major public negative news, but profit decline and weak PEG ratio are concerns

🌟 Company Positive News

• Strong PAT of ₹2,217 Cr. and rising DII interest reflect operational strength and domestic confidence

🏭 Industry

• Industry P/E is 16.5 — GAIL trades slightly below, offering relative value
• Gas and energy sector benefits from infrastructure expansion and clean energy transition

🧾 Conclusion

GAIL is a moderately attractive swing trade candidate with solid fundamentals and neutral technicals. Entry near DMA support offers a favorable setup. Exit near resistance or on RSI/MACD confirmation is advisable.

I can also compare GAIL’s setup with ONGC or Petronet LNG to help refine your swing strategy across the energy sector.