MGL - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.5

📊 Swing Trade Analysis: MGL (Mahanagar Gas Ltd.)

MGL offers a decent swing trade setup, but with moderate conviction due to mixed technical signals and relatively low momentum. Here's the breakdown

✅ Positives

Strong Fundamentals

Low P/E (12.2) vs Industry PE (20.2): Undervalued.

PEG Ratio (0.68): Attractive valuation relative to growth.

High ROCE (22.9%) and ROE (17.7%): Efficient capital use and profitability.

EPS (₹110) and Book Value (₹596): Solid earnings and asset base.

Debt-to-Equity (0.03): Virtually debt-free.

Dividend Yield (2.24%): Adds passive income.

Institutional Interest

FII Holding Increase (+1.72%): Positive sentiment from foreign investors.

⚠️ Weaknesses

MACD (-2.87): Bearish crossover, indicating short-term weakness.

Volume (2.54L) below 1-week average (3.89L): Reduced trading interest.

DII Holding Decline (-1.30%): Domestic investors pulling back.

RSI (55.3): Neutral, no strong momentum.

Quarterly Profit Growth (14%): Positive but not explosive.

🎯 Optimal Entry Price

Ideal Entry Zone: ₹1,325–₹1,335

Slight dip below current price near 50 DMA (₹1,341) offers a better risk-reward setup.

🚪 Exit Strategy (If Already Holding)

Target Exit Price: ₹1,400–₹1,425

Short-term resistance zone based on recent price action.

Stop Loss: ₹1,310

Below recent support and 50 DMA.

Time Horizon: 1–2 weeks, depending on volume recovery and MACD reversal.

This setup suits cautious swing traders who prefer fundamentally strong stocks with low downside risk. Want help identifying higher-momentum alternatives?

Edit in a page