GAIL Faces Resistance At ₹191: SEBI RA Vijay Kumar Gupta Recommends Caution

Fundamentals remain strong, boosted by new international deals. However, the analyst advised a wait-and-see approach until a decisive breakout occurs.

GAIL (India) shares are currently rangebound with no clear directional bias, according to SEBI-registered analyst Vijay Kumar Gupta.

GAIL shares are down 0.6% at ₹183.8 on Monday. The stock movement has been marginal over time, with a 3.6% decline year-to-date, while gaining 1.3% over the past month.

The stock is near the lower edge of the Ichimoku cloud, indicating a sideways consolidation phase, Gupta added. 

The stock is holding above the immediate support of ₹185, but a convincing move above ₹191 is required to reignite bullish momentum. Until then, the setup remains rangebound, with key resistance at ₹200.20 and deeper support around ₹172.40, Gupta added.

The price action remains subdued, trading below the Kumo cloud with the Tenkan-sen trailing the Kijun-sen, indicating weak trend strength.

The Chikou Span is still within past candles, suggesting neutral sentiment. The flat cloud ahead further confirms a lack of strong directional cues in the near term.

On the fundamental level, GAIL remains active with strategic moves, including discussions around LNG imports from Alaska, which could be a positive development under the evolving US-India energy trade framework.

Last week, GAIL signed a long-term LNG sales and purchase agreement with Vitol Asia, under which GAIL will receive around 1 million metric tonnes per annum (MMTPA) of liquefied natural gas (LNG) on an annual basis.

The company posted a strong Q4 FY25 profit of ₹2,491 crore, and investors are now looking ahead to Q1 FY26 results, expected in late July or early August.

Valuations remain attractive with a P/E of 9.78 and a healthy dividend yield of 4.05%. FII interest is inching higher, and a solid balance sheet with a debt/equity ratio of just 0.25 adds to its defensive appeal.

For now, it’s a watch-and-wait setup, Gupta concluded.

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