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GAIL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | GAIL | Market Cap | 1,05,432 Cr. | Current Price | 160 ₹ | High / Low | 203 ₹ |
| Stock P/E | 13.5 | Book Value | 112 ₹ | Dividend Yield | 4.79 % | ROCE | 15.3 % |
| ROE | 14.1 % | Face Value | 10.0 ₹ | DMA 50 | 169 ₹ | DMA 200 | 177 ₹ |
| Chg in FII Hold | 0.35 % | Chg in DII Hold | -0.12 % | PAT Qtr | 1,603 Cr. | PAT Prev Qtr | 2,217 Cr. |
| RSI | 42.0 | MACD | -1.71 | Volume | 1,24,41,084 | Avg Vol 1Wk | 1,57,40,614 |
| Low price | 151 ₹ | High price | 203 ₹ | PEG Ratio | -4.68 | Debt to equity | 0.26 |
| 52w Index | 18.8 % | Qtr Profit Var | -19.5 % | EPS | 11.8 ₹ | Industry PE | 16.0 |
📈 Technical Analysis
- Chart Patterns: Stock corrected from 203 ₹ highs and is consolidating near 160 ₹, showing weakness but holding above 151 ₹ support.
- Moving Averages: Current price (160 ₹) is below both 50 DMA (169 ₹) and 200 DMA (177 ₹), confirming bearish bias.
- RSI: At 42.0, the stock is neutral, leaning toward oversold territory.
- MACD: Negative (-1.71), indicating bearish momentum persists.
- Bollinger Bands: Price is near the lower band, suggesting oversold conditions but not yet a reversal signal.
- Volume Trends: Current volume (1,24,41,084) is lower than 1-week average (1,57,40,614), showing reduced participation.
📊 Momentum & Signals
- Short-Term Momentum: Weak, with potential for sideways consolidation.
- Support Zones: 155–160 ₹ (near-term), 151 ₹ (major support).
- Resistance Zones: 169 ₹ (50 DMA), 177 ₹ (200 DMA), 185 ₹ (trendline resistance).
- Entry Zone: 155–160 ₹ if RSI stabilizes.
- Exit Zone: 169–177 ₹ on rebound; strict stop-loss below 151 ₹.
- Trend Status: Stock is consolidating after correction, awaiting breakout direction.
✅ Positive
- Strong dividend yield at 4.79 % provides income support.
- EPS at 11.8 ₹ supports earnings visibility.
- ROCE (15.3 %) and ROE (14.1 %) highlight efficient capital use.
- FII holdings increased (+0.35 %), showing foreign investor confidence.
- Debt-to-equity ratio at 0.26 indicates manageable leverage.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates weak technical strength.
- PEG ratio (-4.68) suggests valuation concerns relative to growth.
- Current price far below 52-week high (203 ₹), showing significant correction.
- 52-week index performance at 18.8 % indicates underperformance compared to broader market.
📉 Company Negative News
- Quarterly PAT declined (1,603 Cr. vs 2,217 Cr.), showing earnings pressure.
- DII holdings decreased (-0.12 %), showing reduced domestic institutional support.
- Quarterly profit variance (-19.5 %) highlights operational weakness.
📈 Company Positive News
- FII holdings increased (+0.35 %), showing foreign investor confidence.
- Strong dividend yield (4.79 %) provides consistent returns to shareholders.
- Stable balance sheet with low debt enhances financial resilience.
🏭 Industry
- Industry PE at 16.0 is slightly higher than company PE (13.5), suggesting GAIL is undervalued relative to peers.
- Energy and natural gas sector outlook remains positive with rising demand and government infrastructure push.
🔎 Conclusion
- GAIL is in a consolidation phase after correction, with neutral RSI and weak MACD.
- Short-term traders may consider entry near 155–160 ₹ with exit around 169–177 ₹.
- Long-term investors may hold due to strong dividend yield, undervaluation relative to industry, and sector growth potential, but should be cautious of declining profits and weak technical signals.