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IGL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 28 May 26, 08:37 pm

Technical Rating: 3.8

Stock Code IGL Market Cap 23,073 Cr. Current Price 165 ₹ High / Low 229 ₹
Stock P/E 16.9 Book Value 71.3 ₹ Dividend Yield 2.58 % ROCE 18.8 %
ROE 14.2 % Face Value 2.00 ₹ DMA 50 162 ₹ DMA 200 180 ₹
Chg in FII Hold 0.08 % Chg in DII Hold -0.92 % PAT Qtr 277 Cr. PAT Prev Qtr 359 Cr.
RSI 56.0 MACD -0.43 Volume 17,79,228 Avg Vol 1Wk 71,43,935
Low price 142 ₹ High price 229 ₹ PEG Ratio -19.4 Debt to equity 0.01
52w Index 26.4 % Qtr Profit Var -20.7 % EPS 9.74 ₹ Industry PE 20.8

📉 IGL is trading above its 50 DMA (₹162) but below the 200 DMA (₹180), reflecting short-term strength with medium-term weakness. RSI at 56.0 indicates mild bullish momentum, while MACD is slightly negative (-0.43), showing indecision. Bollinger Bands place price mid-range, suggesting consolidation. Current volume (17.8 lakh) is significantly below average (71.4 lakh), showing weak participation.

🔑 Short-term momentum signals: Neutral-to-positive, with potential upside if price sustains above ₹170–₹175 zone.

🎯 Entry Zone: ₹160–₹165 (support region)

🚪 Exit Zone: ₹175–₹185 (resistance region)

📊 Trend Status: Consolidating with mild bullish bias

Positive

  • Trading above 50 DMA supports near-term strength
  • RSI above 55 indicates momentum buildup
  • Debt-to-equity ratio at 0.01 highlights strong balance sheet
  • Dividend yield of 2.58% provides steady income
  • Book value at ₹71.3 supports valuation floor
  • FII holdings increased (+0.08%), showing foreign investor confidence

Limitation

  • Trading below 200 DMA, limiting breakout confirmation
  • MACD negative, showing weak momentum
  • Quarterly PAT declined (₹359 Cr. → ₹277 Cr.)
  • DII holdings decreased (-0.92%), showing reduced domestic support
  • PEG ratio (-19.4) indicates valuation concerns
  • Volume below average, limiting breakout potential

Company Negative News

  • Quarterly profit variation (-20.7%) highlights earnings pressure
  • DII outflows (-0.92%)
  • Price struggling to sustain above long-term averages

Company Positive News

  • FII inflows (+0.08%) support investor confidence
  • Dividend yield of 2.58% adds income cushion
  • Strong balance sheet with minimal debt

Industry

  • Industry PE at 20.8 highlights sector trading at premium multiples
  • City gas distribution sector supported by rising demand and government clean energy initiatives

Conclusion

⚖️ IGL shows neutral-to-positive technical momentum with RSI above 55 but negative MACD. Entry is favorable near ₹160–₹165 with profit booking around ₹175–₹185. Trend remains consolidative with mild bullish bias unless price sustains above 200 DMA (₹180). Fundamentals remain stable with strong balance sheet and dividend yield, though declining PAT and weak volume limit near-term upside.

Would you like me to extend this into a gas distribution sector overlay comparing IGL against peers like MGL, Gujarat Gas, and Adani Total Gas to highlight sector-relative positioning?

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