IGL, MGL, Guj Gas likely to outperform OMCs; Charts show up to 17% upside

Oil & Gas stocks outlook: Indraprastha Gas and Mahanagar Gas are awaiting a breakout from a narrow trading band, show technical charts.

Shares of city gas distributors - Indraprastha Gas, Mahanagar Gas, Gujarat Gas, BPCL, Indian Oil (IOC) and HPCL - were trading with steady gains of up to 3 per cent in intra-day deals on Monday in a positive trending market.

Here's a chart check on these stocks for potential upside targets and key levels to track.

Indraprastha Gas (IGL)

Current Price: Rs 535

Upside Potential: 10.3%

Support: Rs 514; Rs 505

Resistance: Rs 540; Rs 557

Indraprastha Gas stock is seen consolidating in a tight range of Rs 514 - Rs 540 since the start of July; after a sharp 21.5 per cent rally post May. A breakout in either direction, can unveil an extended move in that particular direction.

On the downside, the stock can test its 20-DMA (Daily Moving Average) support at Rs 505 levels. On the upside, the stock can potentially rally to Rs 590, with interim resistance seen at Rs 557. CLICK HERE FOR THE CHART

Mahanagar Gas (MGL)

Current Price: Rs 1,743

Upside Potential: 17.3%

Support: Rs 1,718; Rs 1,688

Resistance: Rs 1,760; Rs 1,873; Rs 1,945

Mahanagar Gas stock has been moving broadly in a range of Rs 1,640 - Rs 1,760. Near term bias for the stock is likely to remain positive as long as it sustains above Rs 1,718 and Rs 1,688 levels.

On the upside, the stock can potentially surge to Rs 2,045 levels; with interim resistance seen at Rs 1,873 and Rs 1,940 levels. CLICK HERE FOR THE CHART

Gujarat Gas

Current Price: Rs 644

Upside Potential: 12.5%

Support: Rs 632

Resistance: Rs 665

Gujarat Gas is seen testing support around its 20-DMA at Rs 632 in the last two trading sessions. The bias for the stock is likely to remain positive as long as the stock holds above the same. CLICK HERE FOR THE CHART

On the upside, the stock needs to clear its resistance at Rs 665; above which it can potentially rally to Rs 725 levels.

HPCL

Current Price: Rs 348

Upside Potential: 8.6%

Support: Rs 336; Rs 322

Resistance: Rs 351; Rs 367

HPCL stock is seen testing resistance around its super trend line on the daily chart at Rs 351. Break and sustained trade above the same can trigger a rally to Rs 378 levels, with interim resistance seen at Rs 367. CLICK HERE FOR THE CHART 

On the flip side, in case of a dip, the stock may revisit the supports at Rs 336 and Rs 322.

BPCL

Current Price: Rs 308

Upside Potential: 5.5%

Support: Rs 297; Rs 293

Resistance: Rs 312; Rs 317

BPCL has been trading sideways in the range of Rs 293 - Rs 312 for more than a month now. The Bollinger Bands too have narrowed down considerably indicating an anticipated trading range of Rs 311 - Rs 297. A breakout seems likely to be around the counter for the stock. CLICK HERE FOR THE CHART

The daily chart shows presence of resistance at Rs 317; above which the up move may stretch to Rs 325 levels. On the flip side, breakout on the downside can trigger a slide towards Rs 285.

IOC

Current Price: Rs 169

Upside Potential: 7.7%

Support: Rs 162; Rs 159

Resistance: Rs 170

Indian Oil (IOC) is seen attempting a breakout on the upside. The stock needs to trade above Rs 170 on a consistent basis for a fresh rally to emerge. On the upside, the stock can potentially rally to Rs 182 levels. 

In case of a decline, the stock is likely to find support around Rs 162 and Rs 159 levels. CLICK HERE FOR THE CHART