IGL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📉 IGL is consolidating with neutral momentum and low volatility, supported by strong fundamentals and institutional interest.

📊 Technical Analysis

• Trend Status: Consolidating — price is slightly above both 50-DMA and 200-DMA, indicating a flat trend with no clear breakout.
• Moving Averages: Price ₹215 is above 50-DMA (₹211) and 200-DMA (₹210), suggesting mild bullish bias.
• RSI (50.4): Neutral zone, indicating balanced momentum with no strong directional signal.
• MACD (0.08): Flat crossover, showing lack of momentum and indecision.
• Bollinger Bands: Price near mid-band, consistent with consolidation and low volatility.
• Volume: Current volume (9.96L) is below weekly average (15.89L), indicating reduced participation.

🎯 Entry & Exit Zones

• Support Levels: ₹210, ₹200, ₹190
• Resistance Levels: ₹220, ₹229 (52-week high)
• Optimal Entry: ₹210–₹213 (on pullback)
• Exit Target: ₹225–₹229 (resistance zone)

✅ Positive

• Strong ROCE (20.8%) and ROE (15.7%) reflect solid capital efficiency.
• Debt-to-equity ratio of 0.01 indicates excellent financial health.
• Dividend yield of 1.98% adds passive income appeal.
• FII and DII holdings increased, showing institutional confidence.

⚠️ Limitation

• MACD and RSI show weak momentum, limiting short-term upside.
• Volume below average, suggesting lack of breakout conviction.
• PEG ratio of 6.29 indicates overvaluation relative to growth.

📉 Company Negative News

• Quarterly profit declined from ₹349 Cr to ₹356 Cr, showing margin pressure.

📈 Company Positive News

• EPS of ₹10.2 and consistent profitability support long-term valuation.
• Stock has gained 81.8% from its 52-week low of ₹153, confirming recovery momentum.

🏭 Industry

• City gas distribution sector remains resilient with rising demand for cleaner energy alternatives.
• Industry P/E (19.6) is slightly lower than IGL’s (21.2), suggesting fair valuation.

🧾 Conclusion

• IGL is consolidating with neutral technical indicators and strong financial fundamentals.
• Entry near ₹210–₹213 could offer a favorable setup with targets around ₹225–₹229.
• Investors should monitor volume and MACD for signs of breakout or reversal.