GUJGASLTD - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.1

📊 Chart Patterns: GUJGASLTD is trading below both its 50 DMA (406 ₹) and 200 DMA (439 ₹), reflecting a bearish structure. The price is closer to its 52-week low (360 ₹), suggesting weak sentiment and pressure near support zones.

📈 Moving Averages:

- 50 DMA: 406 ₹ (resistance)

- 200 DMA: 439 ₹ (major resistance)

The stock remains under both averages, confirming a downtrend.

📉 RSI: 32.8 → Near oversold territory, indicating weak momentum but potential for a short-term bounce.

📉 MACD: -5.66 → Bearish crossover, confirming downward momentum.

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

📊 Volume Trends: Current volume (4.93 lakh) is higher than 1-week average (4.05 lakh), showing increased activity, possibly due to accumulation near support.

🎯 Momentum Signals:

- Short-term bias: Bearish with oversold signals

- Entry Zone: 370–390 ₹ (near support levels)

- Exit Zone: 405–420 ₹ (near 50 DMA resistance)

- Breakout potential above 420 ₹ could target 440–460 ₹.

📌 Trend Status: The stock is in a corrective phase with bearish undertone. Consolidation possible if support near 370 ₹ holds.

Positive

• Strong ROCE (19.6%) and ROE (14.3%) indicate efficient capital usage.
• Dividend yield of 1.55% provides shareholder returns.
• Low debt-to-equity ratio (0.02) ensures financial stability.
• EPS of 16.2 ₹ supports valuation strength.

Limitation

• Stock trading near 52-week low (360 ₹), reflecting weak sentiment.
• Quarterly PAT declined (281 Cr vs 327 Cr), showing earnings pressure.
• RSI and MACD indicate bearish momentum.
• PEG ratio (-6.33) highlights valuation concerns relative to growth.

Company Negative News

• Quarterly profit variation (-8.44%) indicates earnings slowdown.
• FII holdings decreased (-0.16%) and DII holdings decreased (-0.03%), showing reduced institutional confidence.

Company Positive News

• Strong fundamentals with low leverage and consistent dividend payouts.

Industry

• Industry PE: 20.4, lower than GUJGASLTD’s PE of 24.3, suggesting slight overvaluation.
• Gas distribution sector remains resilient with long-term demand drivers but cyclical earnings.

Conclusion

⚖️ GUJGASLTD is in a bearish corrective phase with weak short-term signals but strong fundamentals. Entry near 370–390 ₹ offers accumulation opportunity, while resistance lies at 405–420 ₹. A breakout above 420 ₹ could extend momentum towards 440–460 ₹. Investors should remain cautious due to earnings slowdown, while traders may attempt short-term plays near support zones.