GAIL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | GAIL | Market Cap | 99,390 Cr. | Current Price | 151 ₹ | High / Low | 203 ₹ |
| Stock P/E | 12.8 | Book Value | 112 ₹ | Dividend Yield | 4.97 % | ROCE | 15.3 % |
| ROE | 14.1 % | Face Value | 10.0 ₹ | DMA 50 | 161 ₹ | DMA 200 | 173 ₹ |
| Chg in FII Hold | 0.35 % | Chg in DII Hold | -0.12 % | PAT Qtr | 1,603 Cr. | PAT Prev Qtr | 2,217 Cr. |
| RSI | 40.6 | MACD | -4.65 | Volume | 1,05,05,157 | Avg Vol 1Wk | 1,27,63,256 |
| Low price | 144 ₹ | High price | 203 ₹ | PEG Ratio | -4.43 | Debt to equity | 0.26 |
| 52w Index | 11.4 % | Qtr Profit Var | -19.5 % | EPS | 11.8 ₹ | Industry PE | 13.8 |
📉 Chart & Trend: GAIL is trading at ₹151, below both its 50 DMA (₹161) and 200 DMA (₹173). This indicates short-term and medium-term weakness. The stock is in a downtrend with bearish bias.
📊 Momentum Indicators:
- RSI at 40.6 shows weak momentum, leaning towards oversold territory.
- MACD at -4.65 confirms bearish crossover and selling pressure.
- Bollinger Bands: Price is near the lower band, suggesting downside bias but no reversal yet.
- Volume is below average (1,05,05,157 vs 1,27,63,256), showing reduced participation.
📈 Support & Resistance:
- Immediate support: ₹145–150 zone.
- Strong support: ₹144 (recent low).
- Resistance zones: ₹161 (50 DMA) and ₹173 (200 DMA).
- Optimal entry: ₹145–150 near support.
- Exit zone: ₹160–170 if rebound occurs.
🔎 Trend Status: The stock is consolidating with bearish bias, awaiting breakout above 50 DMA for reversal confirmation.
Positive
- EPS of ₹11.8 shows consistent earnings base.
- Dividend yield of 4.97% provides strong income support for investors.
- ROCE (15.3%) and ROE (14.1%) highlight decent capital efficiency.
- FII holding increased by +0.35%, reflecting foreign investor interest.
Limitation
- Price below both 50 DMA and 200 DMA signals technical weakness.
- PEG ratio of -4.43 suggests distorted valuation relative to growth.
- Debt-to-equity ratio of 0.26 indicates moderate leverage risk.
Company Negative News
- DII holding decreased by -0.12%, showing reduced domestic institutional confidence.
- PAT declined to ₹1,603 Cr from ₹2,217 Cr, showing earnings pressure.
- Quarterly profit variation (-19.5%) highlights operational weakness.
Company Positive News
- FII holding increased by +0.35%, reflecting foreign investor confidence.
- Strong dividend yield supports long-term investors.
Industry
- Oil & gas sector is cyclical, influenced by global energy prices and government policies.
- Industry PE at 13.8 is close to GAIL’s PE (12.8), suggesting fair valuation compared to peers.
Conclusion
📌 GAIL is technically weak, consolidating below key moving averages with bearish momentum. Entry is favorable around ₹145–150 with stop-loss below ₹140. Short-term rebound may target ₹160–170, but sustained breakout requires volume confirmation. Fundamentally steady with strong dividend yield and decent ROCE/ROE, but earnings pressure and technical weakness limit immediate upside potential.
Would you like me to extend this into a peer benchmarking overlay against other oil & gas majors like ONGC, IOC, and Petronet LNG to highlight relative strength and sector rotation opportunities?