MGL - Technical Analysis with Chart Patterns & Indicators

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

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Technical Rating: 3.8

Technical Analysis Summary

• Trend: Reversing from recent highs, showing signs of weakness
• Moving Averages: Price (₹1,275) is below DMA 50 (₹1,307) and DMA 200 (₹1,354), indicating bearish pressure
• RSI (43.4): Weak momentum, approaching oversold territory
• MACD (-3.82): Bearish crossover, confirming downward momentum
• Bollinger Bands: Price near lower band, suggesting potential support but also weakness
• Volume: Above average (3.72L vs 2.22L), indicating active selling

Entry & Exit Zones

• Support: ₹1,250 – ₹1,275 (recent base zone)
• Resistance: ₹1,305 – ₹1,330 (DMA 50 and prior swing highs)
• Optimal Entry: ₹1,260 – ₹1,275 if RSI stabilizes and volume eases
• Exit Zone: ₹1,305 – ₹1,330 if price struggles near moving averages

Positive

• Low debt-to-equity ratio (0.03) and strong ROCE (22.9%)
• Attractive P/E of 12.7 vs industry average of 19.9
• Dividend yield of 2.37% adds income appeal
• PEG ratio of 0.71 suggests reasonable valuation

Limitation

• Price trading below key moving averages
• MACD and RSI indicate bearish momentum
• Quarterly profit dropped by 32.6%
• FII holding declined by 1.89%

Company Negative News

• Weak quarterly earnings and reduced foreign investor interest

Company Positive News

• Stable fundamentals and consistent dividend payouts
• Strong long-term performance with 39.1% gain over 52 weeks

Industry

• MGL operates in the city gas distribution sector under utilities
• Peers include Gujarat Gas, Indraprastha Gas, and Adani Total Gas

Conclusion

MGL is currently reversing from its highs with bearish technical indicators and declining momentum. While fundamentals remain solid, short-term weakness may persist. Traders should watch for stabilization near ₹1,260 before considering entry, with cautious targets around ₹1,330.

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