GAIL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | GAIL | Market Cap | 1,11,205 Cr. | Current Price | 169 ₹ | High / Low | 203 ₹ |
| Stock P/E | 16.0 | Book Value | 113 ₹ | Dividend Yield | 4.44 % | ROCE | 10.7 % |
| ROE | 9.64 % | Face Value | 10.0 ₹ | DMA 50 | 160 ₹ | DMA 200 | 167 ₹ |
| Chg in FII Hold | -1.03 % | Chg in DII Hold | 0.74 % | PAT Qtr | 1,262 Cr. | PAT Prev Qtr | 1,603 Cr. |
| RSI | 63.0 | MACD | 1.75 | Volume | 57,48,853 | Avg Vol 1Wk | 1,86,42,057 |
| Low price | 134 ₹ | High price | 203 ₹ | PEG Ratio | 1.67 | Debt to equity | 0.29 |
| 52w Index | 50.6 % | Qtr Profit Var | -38.4 % | EPS | 10.6 ₹ | Industry PE | 14.7 |
Chart & Trend Analysis:
GAIL is trading at ₹169, above both its 50 DMA (₹160) and 200 DMA (₹167), reflecting short-term bullish strength with medium-term support. RSI at 63.0 indicates healthy momentum, while MACD at 1.75 confirms a positive crossover. Bollinger Bands are moderately wide, suggesting consolidation with potential breakout. Current volume (57.4L) is lower than the weekly average (1.86 Cr), showing reduced participation.
Momentum Signals:
- RSI above 60 signals bullish continuation.
- MACD positive, confirming momentum strength.
- Resistance zones: ₹172–175 (near-term), ₹185–190 (major).
- Support zones: ₹165 immediate, deeper support at ₹160 (50 DMA).
- Trend status: Consolidating with bullish bias; reversal possible if price sustains above 175.
Entry Zone: ₹165–169 (accumulation zone)
Exit Zone: ₹175–185 (profit booking zone)
Stop-Loss: Below ₹160
Positive
- Price trading above both 50 DMA and 200 DMA confirms bullish technicals.
- Dividend yield of 4.44% adds strong shareholder value.
- DII holdings increased (+0.74%), showing domestic institutional support.
- EPS at ₹10.6 supports valuation stability.
Limitation
- Quarterly PAT declined (₹1,262 Cr vs ₹1,603 Cr), showing earnings pressure.
- Volume participation below average, limiting momentum confirmation.
- ROCE (10.7%) and ROE (9.64%) remain modest compared to peers.
Company Negative News
- Decline in FII holdings (-1.03%) shows reduced foreign investor confidence.
- Quarterly profit variation (-38.4%) highlights earnings weakness.
Company Positive News
- DII support indicates domestic institutional optimism.
- Dividend yield remains attractive for income-focused investors.
Industry
- Industry PE at 14.7 is slightly lower than GAIL’s P/E (16.0), suggesting moderate premium valuation.
- Energy sector remains cyclical, with momentum tied to commodity prices and demand cycles.
Conclusion
GAIL is consolidating with bullish bias, trading above key moving averages with supportive RSI and MACD signals. Entry near ₹165–169 offers a favorable setup, with exits around ₹175–185. Fundamentals remain steady with attractive dividend yield, but declining profits and reduced FII confidence require disciplined monitoring.
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