Trading Bets: GAIL India, Adani Total Gas, GNFC can gain up to 15%

Gas related stocks are likely to benefit from the price hike on commercial LPG; Charts indicate fresh highs for select shares.

Shares of natural gas producers and distributors were trading with a positive bias on Friday as the government hiked prices of commercial LPG by Rs 250 per cylinder. Adani Total Gas surged 3 per cent, GAIL (India) jumped 2 per cent, and Mahanagar Gas was up a per cent.

Here’s the outlook on gas-related stocks given the backdrop of this price hike:-

GAIL (India) Limited (GAIL)
Likely target: Rs 169.70 and Rs 185

Upside potential:  6% to 15%

The stock seems to be headed towards a new 52-week high. The present 52-week high stands at Rs 159.85 level. As and when the stock breaches it, the stock would also make a breakout on the "Golden Cross", as highlighted by the weekly chart. The immediate support for the stock exists at Rs 140 mark. The chart structure with the Moving Average Convergence Divergence (MACD) successfully trading above the zero line, reflects a rally to a new all-time high of Rs 169.70 and Rs 185 levels. CLICK HERE FOR THE CHART

Mahanagar Gas Ltd (MGL)
Likely target: Rs 837 (after sustaining above 50-DMA)
Upside potential:  8%

Shares of MGL are making an effort to conquer the 50-day moving average (DMA) resistance, currently set at Rs 777, which they have been struggling to overcome for the past six months. If the stock succeeds in doing so, the breakout could see a rally towards Rs 837, its 100-DMA hurdle. Right now, the support for the stock can be seen at Rs 750 level, the daily chart shows. The MACD is on the verge to cross the zero line, a sign of  positive momentum. CLICK HERE FOR THE CHART

Adani Total Gas Ltd (ATGL)
Likely target: Rs 2,450
Upside potential:  10%

Shares of Adani Total Gas hit a new all-time of Rs 2,242.90 on Wednesday, March 20 with the Relative Strength Index (RSI) trading firmly in the overbought territory. The stock is absorbing all the selling pressure emerging at higher level, shows the daily chart. Going ahead, as long as the support of Rs 2,000 is protected, the trend would see a bullish rally heading to Rs 2,450 level. CLICK HERE FOR THE CHART

Gujarat State Fertilizers & Chemicals Limited (GSFC) 
Likely target: Rs 190
Upside potential:  11%

The stock continues to claim a new historic highs with robust sentiment. The immediate support for the stock exists at Rs 155, as per the daily chart. The weekly formation suggests a medium-term breakout over Rs 150 level. The up move could be heading towards Rs 190 level. CLICK HERE FOR THE CHART

Gujarat Narmada Valley Fertilizers and Chemicals Ltd (GNFC)
Likely target: Rs 950
Upside potential:  11%

The counter skyrocketed by over 50 per cent alone in March month. The robust optimism continues to see long bias, shows the daily chart. The immediate support for the stock is seen at Rs 800 level with chart hinting for a rally towards Rs 950 level. The medium-term support stands at Rs 750 level. CLICK HERE FOR THE CHART