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MGL - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 27 May 26, 07:22 pm

Technical Rating: 4.0

Stock Code MGL Market Cap 10,913 Cr. Current Price 1,103 ₹ High / Low 1,587 ₹
Stock P/E 12.9 Book Value 651 ₹ Dividend Yield 2.72 % ROCE 18.3 %
ROE 13.7 % Face Value 10.0 ₹ DMA 50 1,086 ₹ DMA 200 1,161 ₹
Chg in FII Hold -0.76 % Chg in DII Hold 0.18 % PAT Qtr 132 Cr. PAT Prev Qtr 202 Cr.
RSI 53.6 MACD -3.01 Volume 95,010 Avg Vol 1Wk 1,55,501
Low price 900 ₹ High price 1,587 ₹ PEG Ratio 5.51 Debt to equity 0.03
52w Index 29.6 % Qtr Profit Var -45.6 % EPS 85.7 ₹ Industry PE 20.8

📈 Chart & Momentum Analysis

- Current price (₹1,103) is above DMA 50 (₹1,086) but below DMA 200 (₹1,161), showing short-term strength but medium-term weakness.

- RSI at 53.6 indicates neutral momentum, leaving room for upside.

- MACD at -3.01 is negative, signaling short-term bearish bias.

- Bollinger Bands: Price near mid-band, reflecting sideways consolidation.

- Volume (95K) is below average weekly volume (1.55L), showing reduced participation.

🎯 Entry & Exit Zones

- Optimal entry: ₹1,080–₹1,095 (support near DMA 50).

- Exit/Profit zone: ₹1,140–₹1,160 (resistance near DMA 200).

- Stop-loss: ₹1,065 (support zone).

📊 Trend Status

- The stock is consolidating with mild bearish undertone, awaiting breakout above DMA 200 for bullish confirmation.

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Positive

✔ EPS at ₹85.7 reflects profitability.

✔ Dividend yield at 2.72% adds investor appeal.

✔ ROCE (18.3%) and ROE (13.7%) show decent efficiency.

✔ Low debt-to-equity (0.03) ensures financial stability.

Limitation

⚠ Trading below DMA 200, showing medium-term weakness.

⚠ MACD negative, signaling bearish bias.

⚠ Volume tapering, showing weaker conviction.

⚠ PEG ratio at 5.51 indicates expensive growth valuation.

Company Negative News

📉 PAT declined from ₹202 Cr. to ₹132 Cr. (-45.6%).

📉 FII holding reduced (-0.76%).

Company Positive News

📈 DII holding increased (+0.18%).

📈 Dividend yield remains attractive at 2.72%.

Industry

🏭 Energy & gas distribution sector PE at 20.8, MGL trades at a discount (PE 12.9).

🏭 Sector outlook remains steady with consistent demand.

Conclusion

🔎 MGL is consolidating with neutral momentum and bearish undertone. Best strategy is accumulation near ₹1,080–₹1,095 and profit booking around ₹1,140–₹1,160. A breakout above ₹1,161 (DMA 200) would confirm bullish continuation toward ₹1,200+.

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