GAIL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📈 Technical Analysis

• 📊 Chart Pattern: GAIL is showing signs of a mild recovery, trading near key moving averages with a neutral-to-bullish setup.
• 📈 Moving Averages: Price is slightly above both 50-DMA (179 ₹) and 200-DMA (182 ₹), indicating a potential trend continuation.
• 📈 RSI (57.4): In bullish territory but not overbought — suggests moderate upward momentum.
• 📈 MACD (1.31): Positive crossover, indicating early bullish momentum.
• 📉 Bollinger Bands: Price near mid-band, suggesting consolidation with breakout potential.
• 📈 Volume Trend: Current volume (1.32 Cr.) is above 1-week average (1.17 Cr.), showing increased participation and buying interest.

📍 Entry & Exit Zones

• ✅ Entry Zone: 178 ₹ – 183 ₹ (near support and moving averages)
• 🚪 Exit Zone: 210 ₹ – 216 ₹ (resistance zone and 52-week high)

📊 Trend Status

• 🔄 Current Trend: Consolidating with bullish bias
• 📈 Bias: Bullish if RSI crosses 60 and MACD strengthens

✅ Positive

• Strong ROCE (15.3%) and ROE (14.1%) reflect efficient capital deployment.
• Dividend yield of 4.10% offers attractive income potential.
• Price trading above key moving averages and volume surge support bullish sentiment.

⚠️ Limitation

• Negative PEG (-5.15) suggests poor growth alignment with valuation.
• Quarterly profit declined by 17%, which may limit upside.
• MACD signal is mild — momentum needs confirmation.

📉 Company Negative News

• FII holding dropped by 1.19%, indicating reduced foreign investor confidence.

📈 Company Positive News

• DII holding increased by 0.95%, showing domestic institutional support.
• Quarterly PAT remains strong at 2,217 Cr. despite sequential decline.

🏭 Industry

• Natural gas and energy sector remains stable with long-term infrastructure and clean energy tailwinds.
• GAIL trades slightly below industry PE (14.9 vs 16.6), suggesting fair valuation.

🧾 Conclusion

• GAIL is consolidating with bullish undertones and strong fundamentals.
• Short-term traders may consider entries near 180 ₹ and exits near 215 ₹.
• Long-term investors can benefit from dividend yield and monitor earnings consistency for sustained growth.