Qatar gas strike impact; Petronet LNG, Gail could dip another 10%: Analysts

Petronet LNG has reversed its trend, surrendering all the gains accumulated earlier this year, says research analyst Ajit Mishra of Religare.

Shares of gas-related stocks are in focus on Friday amid fears of supply disruptions following Iran's strike on one of the world's biggest gas hub in Qatar.  Amid the US-Israel-Iran war, Iran attacked Ras Laffan, Qatar's largest Liquefied Natural Gas (LNG) plant on Thursday in an response to Israel's strike on its energy infrastructure in South Pars.  Qatar ranks among the largest Liquified Natural Gas (LNG) producers in the world, with reports suggesting that India imports nearly 20 per cent of its gas requirements from Qatar.  QatarEnergy Chief Executive Officer (CEO) Saad al-Kaabi said the missile strikes damaged infrastructure accounting for about 17 per cent of Qatar's LNG export capacity, with repairs expected to take three to five years.  Kaabi added that the company could be forced to declare force majeure on long-term contracts with some countries for several years. READ MORE  Japan-based brokerage firm Nomura has flagged the escalating West Asia crisis as a key risk to Petronet LNG's FY27 earnings, fearing that supply disruptions could last at least a few months.  Citing the risk of a temporary hit to volumes and earnings, the brokerage firm has slashed the target price on Petronet LNG from ₹370 to ₹340 per share. READ MORE  Meanwhile, on the bourses, thus far in March 2 of India's leading gas-related stocks - Petronet LNG and Gail India plunged 18 per cent and 14 per cent, respectively.  On Friday, Petronet LNG slipped 2 per cent to ₹266, while Gail India was up 1 per cent at ₹145.50.  Technical analysts highlight that the overall outlook for Petronet and Gail looks tepid in the near term owing to the recent damage on the charts. Ajit Mishra, Senior VP, Research at Religare Broking believes that Gail India looks weaker compared to Petronet LNG. 

Petronet LNG

Current Market Price: ₹266  The trend has completely reversed for Petronet LNG, with the stock erasing its entire gains of Jan-Feb period. The positive momentum at the counter has faded, and the stock is now seen inching towards crucial support around ₹258 - ₹295, says Ajit Mishra. 

 

 

  The analyst expects a sideways to negative trend for the stock, with a downside risk of a fall towards ₹240 if the support zone is violated. This translates into a downside risk of 10 per cent from current levels.   

Gail India

Current Market Price: ₹145.50  Mishra highlights that Gail India looks weaker on charts compared to Petronet as the stock is seen trading below its long-term moving average on the weekly chart. 

 

  "Gail India is trading below its 200-week exponential moving average (EMA), and hence may decline to ₹140 - ₹135 zone," says Mishra.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.