IGL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📊 Chart Patterns: IGL is trading below both its 50 DMA (200 ₹) and 200 DMA (207 ₹), showing short-term weakness. Price action suggests consolidation between 172 ₹ (support) and 205–210 ₹ (resistance).

📈 Moving Averages: Current price (194 ₹) is below both 50 DMA and 200 DMA, confirming bearish undertone in the medium term.

📉 RSI: At 51.0, RSI is neutral, indicating balanced momentum without strong overbought or oversold signals.

📉 MACD: Negative (-4.57) indicates bearish crossover, confirming short-term downside momentum.

📊 Bollinger Bands: Price is near the lower band, suggesting weakness but potential for rebound if support holds.

📊 Volume Trends: Current volume (78.5 lakh) is lower than 1-week average (118.6 lakh), showing reduced participation and lack of strong buying interest.

📌 Momentum Signals: Weak short-term momentum; rebound possible if price sustains above 190 ₹.

🎯 Entry Zone: 190–195 ₹ (near support).

🎯 Exit Zone: 205–210 ₹ (near resistance trendline).

🔎 Trend Status: Consolidating with bearish bias.

Positive

• Strong ROCE (20.8%) and ROE (15.7%) highlight efficiency.
• Dividend yield of 2.15% adds investor appeal.
• Debt-to-equity ratio is very low (0.01), showing financial stability.
• EPS of 9.74 ₹ supports valuation.

Limitation

• Stock trading below both 50 DMA and 200 DMA, showing technical weakness.
• PEG ratio of 5.89 indicates expensive valuation relative to growth.
• Quarterly profit declined (-13.6%), raising concerns about earnings momentum.

Company Negative News

• Quarterly PAT fell (₹373 Cr vs ₹356 Cr), showing earnings pressure.
• Weak technical indicators (MACD, volume trends) point to short-term bearishness.

Company Positive News

• FII holdings increased (+0.39%) and DII holdings increased (+0.09%), showing institutional support.
• Strong fundamentals with high ROCE and ROE.
• Dividend yield provides steady income for investors.

Industry

• Industry PE at 20.4 is close to IGL’s P/E (19.8), suggesting fair valuation relative to peers.
• Gas distribution sector remains critical for energy transition and long-term demand stability.

Conclusion

⚖️ IGL is consolidating near support levels with weak short-term momentum. Traders may consider entry around 190–195 ₹ with exit near 205–210 ₹. Long-term investors benefit from strong fundamentals, dividend yield, and low debt, though high PEG ratio and declining quarterly profits remain concerns.