IGL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | IGL | Market Cap | 24,424 Cr. | Current Price | 174 ₹ | High / Low | 229 ₹ |
| Stock P/E | 17.9 | Book Value | 70.0 ₹ | Dividend Yield | 2.44 % | ROCE | 20.8 % |
| ROE | 15.7 % | Face Value | 2.00 ₹ | DMA 50 | 188 ₹ | DMA 200 | 201 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.09 % | PAT Qtr | 373 Cr. | PAT Prev Qtr | 356 Cr. |
| RSI | 36.1 | MACD | -4.28 | Volume | 7,87,550 | Avg Vol 1Wk | 18,96,555 |
| Low price | 171 ₹ | High price | 229 ₹ | PEG Ratio | 5.31 | Debt to equity | 0.01 |
| 52w Index | 5.46 % | Qtr Profit Var | -13.6 % | EPS | 9.74 ₹ | Industry PE | 19.8 |
📊 Chart Patterns & Trend: IGL is in a bearish consolidation phase after correcting from its highs. Price is trading below both the 50 DMA (188 ₹) and 200 DMA (201 ₹), indicating short-term weakness and medium-term resistance. Strong support is visible near 171–175 ₹, while resistance lies around 185–190 ₹.
📉 Moving Averages: Both 50 DMA and 200 DMA are acting as resistance. Sustained move above 190–195 ₹ would confirm bullish reversal.
📉 RSI: At 36.1, RSI is weak, suggesting bearish momentum and oversold conditions.
📉 MACD: Negative (-4.28), showing bearish crossover and continued downside momentum.
📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions. A rebound toward 185–190 ₹ is possible if support holds.
📊 Volume Trends: Current volume (7.87 lakh) is lower than average weekly volume (18.9 lakh), showing reduced participation and lack of strong buying support.
🎯 Entry Zone: 171–175 ₹ (support zone).
🎯 Exit Zone: 185–195 ₹ (resistance zone).
🔑 Stop Loss: 168 ₹ (below recent support).
Positive
- ROCE at 20.8% and ROE at 15.7% indicate strong efficiency.
- Debt-to-equity ratio at 0.01 shows virtually debt-free balance sheet.
- Dividend yield of 2.44% adds income stability.
- EPS at 9.74 ₹ supports valuation strength.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms short-term weakness.
- PEG ratio at 5.31 indicates poor growth-adjusted valuation.
- Quarterly profit variation (-13.6%) reflects earnings pressure.
- Weak volume participation limits momentum strength.
Company Negative News
- FII holdings decreased (-0.21%), showing reduced foreign investor confidence.
- Stock corrected from 229 ₹ to 174 ₹, reflecting investor caution.
Company Positive News
- Quarterly PAT improved from 356 Cr. to 373 Cr., showing operational growth despite volatility.
- DII holdings increased (+0.09%), showing domestic institutional support.
- Strong fundamentals with debt-free balance sheet and decent efficiency ratios.
Industry
- Industry PE at 19.8 vs. stock PE at 17.9 highlights slight undervaluation relative to peers.
- City gas distribution sector supported by government initiatives and rising demand for clean energy.
Conclusion
⚖️ IGL is in a bearish consolidation phase with weak signals (RSI low, MACD negative). Short-term bounce is possible from 171–175 ₹, but resistance near 185–195 ₹ limits upside. Medium-term outlook remains cautious due to earnings pressure and weak technicals, though strong fundamentals, dividend yield, and debt-free status provide resilience. Risk management is crucial for traders considering entry.
Would you like me to extend this into a peer benchmarking overlay with other city gas distribution companies (like MGL, Gujarat Gas, and Adani Total Gas) to highlight relative strength and sector rotation opportunities?