GUJGASLTD - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.0

📈 Technical Analysis

• 📉 Chart Pattern: GUJGASLTD is showing signs of a reversal, forming lower highs and testing support near 410 ₹.
• 📉 Moving Averages: Price is below both 50-DMA (427 ₹) and 200-DMA (454 ₹), indicating bearish momentum.
• 📉 RSI (35.2): Near oversold zone, suggesting weak momentum and potential for a technical bounce.
• 📉 MACD (-6.15): Negative crossover, confirming bearish sentiment.
• 📉 Bollinger Bands: Price near lower band, indicating oversold conditions but no strong reversal signal yet.
• 📉 Volume Trend: Current volume (3.12L) is below 1-week average (5.01L), reflecting weak participation and low conviction.

📍 Entry & Exit Zones

• ✅ Entry Zone: 390 ₹ – 410 ₹ (near support and psychological level)
• 🚪 Exit Zone: 440 ₹ – 460 ₹ (resistance from 50-DMA and prior breakdown level)

📊 Trend Status

• 📉 Current Trend: Reversing from uptrend to short-term bearish
• ⚠️ Bias: Bearish unless RSI rebounds above 45 and MACD flattens

✅ Positive

• Strong ROCE (19.6%) and ROE (14.3%) indicate efficient capital use.
• Low debt-to-equity ratio (0.02) reflects financial prudence.
• Quarterly PAT improved from 287 Cr. to 327 Cr., showing operational resilience.

⚠️ Limitation

• Price trading below key moving averages — weak technical structure.
• MACD and RSI both reflect bearish momentum.
• PEG ratio (-6.45) suggests valuation concerns relative to growth.

📉 Company Negative News

• FII and DII holdings declined slightly, indicating reduced institutional confidence.
• Quarterly profit variation shows a slight decline (-0.91%).

📈 Company Positive News

• EPS of 16.6 ₹ and a P/E of 24.8 are reasonable compared to industry benchmarks.
• Dividend yield of 1.43% adds to investor appeal.

🏭 Industry

• Natural gas distribution sector remains stable with long-term demand drivers and regulatory support.
• GUJGASLTD trades slightly above industry PE (24.8 vs 19.6), reflecting moderate premium valuation.

🧾 Conclusion

• GUJGASLTD is reversing with bearish technical indicators despite solid fundamentals.
• Short-term traders may consider entries near 400 ₹ and exits near 455 ₹.
• Long-term investors should monitor technical recovery and volume strength before adding exposure.