Technical Outlook On Gas-related Stocks Post Gujarat Gas, GSPL Merger Plan

4 min read Last Updated : Sep 02 2024 | 11:53 AM IST

Shares of gas-related companies were in focus on Monday following state-run Gujarat Gas plan of realigning its business units. On Friday post market hours, Gujarat Gas announced the merger of Gujarat State Petronet Limited (GSPL) and Gujarat State Petroleum Corporation (GSPC) with itself.

Further, the Gujarat Gas and GSPL board also approved the demerger of the gas transmission unit into a separate entity once the above mentioned merger process is completed.

Analysts believe that the restructuring of these Gujarat companies will simplify the existing layered structure, and thus are upbeat on the future prospects.

On Monday morning, shares of Gujarat Gas zoomed 13.7 per cent to a hit a high of Rs 690 on the back of heavy volumes; similarly, GSPL stock jumped 5.6 per cent to Rs 468. READ MORE

Against this backdrop here’s how the leading gas-related stocks are placed on the charts.

Gujarat Gas

Current Price: Rs 657

Upside Potential: 7.5%

Support: Rs 645; Rs 630

Resistance: Rs 681

After zooming to a high of Rs 690, Gujarat Gas has pared some gains but still rules almost 9 per cent higher compared to its previous close. The stock is seen attempting a breakout on the daily scale, for which the stock will need to close above Rs 650 levels. CLICK HERE FOR THE CHART

On the upside, near resistance for the stock is seen at Rs 681 – the higher-end of the Bollinger Bands on the weekly scale; above which the stock can potentially soar to Rs 706 levels. Support on the downside can be expected around Rs 645 and Rs 630 levels.

GSPL

Current Price: Rs 455

Upside Potential: 15.4%

Support: Rs 438; Rs 424; Rs 413

Resistance: Rs 474; Rs 493; Rs 509

GSPL stock has been on a winning run for the last 10 trading sessions, wherein the stock has zoomed over 46 per cent from levels of Rs 320 on August 19. The daily chart suggests that the short-term bias for GSPL is likely to remain bullish as long as the stock trades above Rs 438; below which support for the stock can be anticipated around Rs 424 and Rs 413. CLICK HERE FOR THE CHART

On the upside, the stock can potentially rally to Rs 525, with interim resistance seen at Rs 474, Rs 493 and Rs 509 levels.

Mahanagar Gas

Current Price: Rs 1,811

Upside Potential: 8.8%

Support: Rs 1,778; Rs 1,700

Resistance: Rs 1,850; Rs 1,860

Mahanagar Gas (MGL) stock has been trading with a positive bias post its breakout above the 20-DMA (Daily Moving Average) in early June. Thereafter, the stock has consistently found support around this short-term moving average and scaled to higher highs. CLICK HERE FOR THE CHART

At present, MGL stock is once again seen testing support around its 20-DMA at Rs 1,778; below which stronger support for the stock exists near 1,700 levels. On the upside, the stock is seen facing some resistance around Rs 1,860, which is the higher-end of the Bollinger Bands on the daily scale. Break and sustained trade above Rs 1,850, can trigger an up move towards Rs 1,970 levels.

Indraprastha Gas

Current Price: Rs 556

Upside Potential: 4.9%

Support: Rs 530; Rs 520

Resistance: Rs 558; Rs 574

Indraprastha Gas (IGL) stock is seen attempting a breakout on the daily scale as it tests the resistance around its higher-end of Bollinger Bands at Rs 558. Break and sustained trade above Rs 558, can trigger a rally towards Rs 583, with some resistance seen at Rs 574. CLICK HERE FOR THE CHART

On the flip side, in case, the stock fails to hold above Rs 558, it can possibly slip back to Rs 530 and Rs 520 levels, wherein lies the strong support for IGL stock.

Petronet LNG

Current Price: Rs 369

Downside Risk: 4.6%

Support: Rs 355

Resistance: Rs 375; Rs 382

Petronet LNG stock seems to be struggling around its 20-DMA for the last few trading sessions. The 20-DMA stands at Rs 369; while key momentum oscillators are marginally tilted in favour of a downside.

As such, below its 20-DMA the stock can potentially slip towards its 50-DMA at Rs 352, with interim support seen at Rs 356. On the upside, the stock is expected to face resistance around Rs 375 and Rs 382 levels. CLICK HERE FOR THE CHART

First Published: Sep 02 2024 | 11:53 AM IST