The Indian gas sector has underperformed from October 2024 to mid-2025 as the broader market entered a profit-booking phase. However, recent price action and technical patterns signal a reversal is on the cards. Two key stocks, Indraprastha Gas Ltd. (IGL) & Gujarat Gas, are displaying breakout signals, making them potential candidates for accumulation.
Indraprastha Gas Ltd. (IGL)
The share price of Indraprastha Gas Ltd. (IGL) experienced a steep decline, reaching a panic bottom at Rs 153 in November 2024. The price then rebounded to Rs 226 by January 2025, a 48% rally in just two months. However, the price retraced with the higher-low structure, which is bullish as per Dow Theory. The current chart structure suggests the bulls have an upper hand in the trend.
Technical Chart Structure
- Ascending Triangle Breakout: We can see a bullish Ascending triangle chart pattern breakout on the daily price pattern.
- Above the 200DMA: Reclaiming this technical level for the first time since October 2024 confirms strength.
- Volume Spike: Rising volumes on up-days indicate strong participation from both institutional and retail players.
- RSI Above 60: Momentum with the RSI tool is clearly on the bulls’ side.
Considering the bullish chart structure, IGL is well-positioned for a potential uptrend in the coming months, and investors should add the stock to their watchlist.
Gujarat Gas
Gujarat Gas experienced a sharp correction, falling from Rs 689 in September 2024 to Rs 360 in March 2025. Since then, the share price of Gujarat Gas has rallied over 40%. It is currently consolidating in a tight range—a classic setup for a breakout. The technical chart points toward further bullish action.
Technical Chart Structure
- Cup and Handle Breakout: The daily chart reveals a breakout from this bullish continuation pattern.
- Support at 200-Day Moving Average: The stock has reclaimed this level for the first time since late 2024.
- Price-Volume Breakout: Higher volume during price gains validates the upward move.
- RSI Above 60: The momentum oscillator confirms renewed strength.
On the chart, the bottoming formation pattern, along with other supporting indicators, suggests that a potential rally may be on the cards. Hence, it may be worthwhile to add this stock to your watchlist.
Gas stocks in an Opportunity Zone
The Indian gas sector presents a potential bullish opportunity in IGL and Gujarat Gas on the charts. As the broader markets are approaching highs, the gas sector can catch up with the rally and offer a favourable risk-reward ratio.
Disclaimer
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
As per SEBI guidelines, the writer and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
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