GAIL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | GAIL | Market Cap | 1,07,325 Cr. | Current Price | 163 ₹ | High / Low | 203 ₹ |
| Stock P/E | 13.8 | Book Value | 112 ₹ | Dividend Yield | 4.59 % | ROCE | 15.3 % |
| ROE | 14.1 % | Face Value | 10.0 ₹ | DMA 50 | 157 ₹ | DMA 200 | 168 ₹ |
| Chg in FII Hold | -1.03 % | Chg in DII Hold | 0.74 % | PAT Qtr | 1,603 Cr. | PAT Prev Qtr | 2,217 Cr. |
| RSI | 61.5 | MACD | 4.04 | Volume | 78,41,736 | Avg Vol 1Wk | 1,02,75,784 |
| Low price | 134 ₹ | High price | 203 ₹ | PEG Ratio | -4.79 | Debt to equity | 0.26 |
| 52w Index | 42.2 % | Qtr Profit Var | -19.5 % | EPS | 11.8 ₹ | Industry PE | 15.3 |
📈 Chart Patterns: Price is trading above the 50 DMA (157 ₹) but below the 200 DMA (168 ₹), showing short-term strength with medium-term caution. Trendlines suggest resistance near 168–170 ₹ and support around 160–162 ₹.
📊 Moving Averages: Current price (163 ₹) above 50 DMA confirms short-term bullish bias, but below 200 DMA reflects longer-term weakness.
📉 RSI: At 61.5, RSI indicates moderately strong momentum, but not yet overbought.
📊 MACD: Positive at 4.04, confirming bullish crossover and short-term upside potential.
📉 Bollinger Bands: Price near mid-to-upper band, reflecting momentum but also risk of consolidation.
📊 Volume Trends: Current volume (78.4L) below 1-week average (102.7L), showing reduced participation despite price strength.
🎯 Momentum Signals: Mildly bullish. MACD and RSI confirm strength, though volume weakness limits conviction.
💹 Entry Zone: 160–162 ₹ (support levels).
💹 Exit Zone: 168–170 ₹ (resistance levels).
📌 Trend Status: Consolidating with mild bullish bias.
Positive
- Strong ROE (14.1%) and ROCE (15.3%) highlight profitability.
- Dividend yield of 4.59% provides shareholder returns.
- EPS of 11.8 ₹ supports earnings visibility.
- DII holdings increased (+0.74%), showing domestic institutional support.
Limitation
- Price below 200 DMA indicates medium-term weakness.
- Quarterly PAT declined (2,217 Cr. → 1,603 Cr.), showing earnings pressure.
- FII holdings reduced (-1.03%), showing weaker foreign investor confidence.
- PEG ratio (-4.79) highlights inefficiency in growth valuation.
Company Negative News
- Quarterly profit variation (-19.5%) highlights operational weakness.
- Reduced FII holdings show foreign investor caution.
Company Positive News
- DII support indicates domestic institutional optimism.
- Dividend yield remains attractive for income-focused investors.
- Stock trading above 50 DMA reflects short-term strength.
Industry
- Industry PE at 15.3 is close to GAIL’s P/E (13.8), suggesting fair valuation.
- Gas and energy sector supported by infrastructure demand and government initiatives.
Conclusion
⚖️ GAIL is consolidating with mild bullish bias, supported by MACD and RSI strength. Entry near 160–162 ₹ offers a favorable setup, with exits around 168–170 ₹. Long-term investors may hold given strong fundamentals and dividend yield, while short-term traders should remain cautious due to declining PAT and price below 200 DMA.