Gas stocks in focus: Trading strategies for Gujarat Gas, MGL, Adani Total

The outlook for Natural gas stocks looks good. However, these stocks need to cross and sustain above the key levels for renewed buying interest.

Shares of natural gas companies were seen trading with robust gains on Wednesday post an impressive financial performance by the companies in the recently concluded March quarter. Gujarat Gas and Mahanagar Gas reported a 36 per cent and 51 per cent improvement in total revenues during the quarter. 

Shares of Gujarat Gas opened 6 per cent higher and rallied to an intra-day high of Rs 555, surging over 9 per cent so far in the day. Mahanagar Gas too gained nearly 7 per cent in trades so far. Meanwhile, Gujarat State Petronet added 4 per cent, while Petronet LNG  and Adani Total Gas traded with modest gains.

Here’s an outlook on stocks related to Natural Gas.

Gujarat Gas Limited (GUJGASLTD)

Outlook: If the breakout sustains, the stock can touch Rs 590

Gujarat Gas appears to breakout on the “Double Bottom” formation with strong volume, shows the daily chart. The stock has also surpassed its 50-day moving average (DMA). If this breakout sustains, one can expect a rally in the direction of Rs 590, which is its 100-DMA. The Moving Average Convergence Divergence (MACD) is making an attempt to rise above the zero line, if it succeeds in doing so, the momentum could see more long additions. CLICK HERE FOR THE CHART

Mahanagar Gas Ltd (MGL)

Outlook: Trading in a tight range 

As per the candlestick study, the MGL stock is relentlessly holding the previous breakout mark of Rs 740, seen in early March 2022, shows the daily chart. That’s said, now the stock has a barrier of Rs 800 level on the upside, which was the subsequent breakout mark experienced in late March 2022. Thus, the price action shows a tight range of Rs 800 to Rs 740 and any break outside this range could determine the next course of action. As and when that happens, one can anticipate a Rs 100 rally in the stock. CLICK HERE FOR THE CHART

Gujarat State Petronet Limited (GSPL)

Outlook: Rs 270 key hurdle

In a broad sense, the shares of Gujarat State Petronet are trending on “lower high, lower low” formation, according to the daily chart. The biggest hurdle for the stock exists at Rs 290 and upon a conclusive close over the same could mean a reversal in trend. The immediate hurdle falls at Rs 270 mark. The trend is sluggish and until crucial obstacles are not conquered, the sentiment could stay uneasy.  CLICK HERE FOR THE CHART

Adani Total Gas Ltd (ATGL)

Outlook: Faces resistance at Rs 2,600

The range of Rs 2,350 to Rs 2,250 indicates an accumulation and reversal points. The stock exhibited a firm reversal around these levels twice in the recent times, shows the daily chart. Thus, as long as the this range is protected, the positive bias could see a sharp recovery. The immediate resistance falls at Rs 2,600 level. CLICK HERE FOR THE CHART

Petronet LNG Limited (PETRONET)

Outlook: Struggling at 200-DMA of Rs 216

The stock of Petronet LNG managed to scale the 200-DMA after crossing the hurdle of 50-DMA at Rs 207. Currently, the stock is struggling to decisively surpass the 200-DMA positioned at Rs 216. Only a robust close above the same could trigger the next upside. The MACD is trading with a positive crossover suggesting a decent upward momentum. CLICK HERE FOR THE CHART