Price hike boost! Gail India, Petronet, Gujarat Gas may rally up to 11%

Natural Gas related stocks were in focus on the back of CNG and piped gas price hike in several northern India cities

The shares of companies related to Natural Gas were trading in green with strong positive sentiment as the prices of Compressed Natural Gas (CNG) and piped natural gas (PNG) were hiked with effect from October 13, 2021 in several cities in North India.

Shares of Indraprastha Gas Limited and Gujarat Gas Limited were trading with significant volume from the start of trading session.

GAIL (India) Limited (GAIL)

Likely target: Rs 190 (after closing above Rs 170)

Upside potential:  11%

As long as the shares of GAIL (India) Limited  trades above the 200-day moving average (DMA), currently placed at Rs 144.50, the positive sentiment is going to support the upside bias. The said moving average is held since December last year. The immediate resistance point for the stock is at Rs 170 and a closing basis breakout above this mark may signal a rally towards Rs 190, according to both daily and weekly charts. CLICK HERE FOR THE CHART

Adani Total Gas Ltd (ATGL)

Outlook: Sideways movement

The gap-down close dismantled the positive sentiment at the Adani Total Gas counter, as per the weekly chart. The range of Rs 1,555 to Rs 1545 needs to be crossed to embark a new trend. It did try to cross this hurdle, however failed to do so in the September 2021. The current candlestick scenario reflects a sideways movement for the stock in the range of Rs 1,550 to Rs 1,330 levels. Either side breakout may decide the next course of action. CLICK HERE FOR THE CHART

Indraprastha Gas Limited (IGL)

Likely target: Rs 531 (mild bullish)

Upside potential:  3%

When looked at from a broader perspective, the stock trades in a wide consolidation range of Rs 600 to Rs 500 levels. The current momentum shows weakness that actually trades below 200-DMA, currently positioned at Rs 531. So, as long as the counter trades above Rs 500, one can expect efforts to conquer Rs 531, according to the daily chart.  CLICK HERE FOR THE CHART

Petronet LNG Limited (PETRONET)

Likely target: Rs 247 and Rs 260

Upside potential:  6% to 10%

The stock tested the support of 50-DMA placed at Rs 228 and once again managed to close above 200-DMA in the recent times. This up move shows further upside towards Rs 247 and Rs 260 levels, which are the next crucial obstacles. The volumes have been supportive of the positive close suggestive of the positive interest of market participants, according to the daily chart. The immediate support for the stock stays at Rs 231. CLICK HERE FOR THE CHART

Gujarat Gas Limited (GUJGASLTD)

Likely target: Rs 820

Upside potential:  10%

The “Higher High, Higher Low” formation shows positive bias from a medium-term perspective. Until the support of Rs 700 is defended on a closing basis, the reversal may see an upside towards Rs 820, according to the weekly chart. The medium-term support stands at Rs 579, which is its 50-weekly moving average (WMA). CLICK HERE FOR THE CHART