GSPL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.2

📊 Chart Patterns: GSPL is trading below both its 50 DMA (298 ₹) and 200 DMA (313 ₹), reflecting short-term weakness. The price is closer to its 52-week low (261 ₹), suggesting bearish sentiment but strong support nearby.

📈 Moving Averages:

- 50 DMA: 298 ₹ (resistance)

- 200 DMA: 313 ₹ (major resistance)

The stock remains under both averages, confirming a corrective phase.

📉 RSI: 35.4 → Near oversold territory, indicating weak momentum but potential for a short-term bounce.

📉 MACD: -5.47 → Bearish crossover, confirming downward momentum.

📊 Bollinger Bands: Price near lower band, suggesting oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (3.05 lakh) is slightly below 1-week average (3.17 lakh), showing reduced participation and lack of strong buying interest.

🎯 Momentum Signals:

- Short-term bias: Bearish with oversold signals

- Entry Zone: 270–285 ₹ (near support levels)

- Exit Zone: 300–315 ₹ (near 50 & 200 DMA resistance)

- Breakout potential above 315 ₹ could target 340–360 ₹.

📌 Trend Status: The stock is in a corrective phase with bearish undertone. Consolidation possible if support near 270 ₹ holds.

Positive

• Debt-free balance sheet (Debt-to-equity ratio: 0.00) ensures financial stability.
• EPS of 13.0 ₹ supports valuation strength.
• FII holdings increased (+0.36%), reflecting foreign investor confidence.
• Dividend yield of 1.75% provides shareholder returns.

Limitation

• Stock trading near 52-week low (261 ₹), reflecting weak sentiment.
• Quarterly PAT declined slightly (-1.75%), showing earnings pressure.
• ROCE (9.60%) and ROE (7.67%) are modest compared to peers.
• PEG ratio (-3.10) highlights valuation concerns relative to growth.

Company Negative News

• DII holdings decreased (-0.49%), showing reduced domestic institutional support.

Company Positive News

• Quarterly PAT improved sequentially (382 Cr vs 142 Cr), showing operational recovery.
• FII inflows (+0.36%) reflect renewed foreign investor interest.

Industry

• Industry PE: 15.4, lower than GSPL’s PE of 22.4, suggesting slight overvaluation.
• Gas transmission sector remains cyclical, influenced by energy demand and regulatory changes.

Conclusion

⚖️ GSPL is in a bearish corrective phase with weak short-term signals but strong fundamentals. Entry near 270–285 ₹ offers accumulation opportunity, while resistance lies at 300–315 ₹. A breakout above 315 ₹ could extend momentum towards 340–360 ₹. Investors may accumulate cautiously for long-term value, while traders should wait for confirmation above resistance.