Technical Analysis Gujarat Gas Ltd

The stock

is hit its all-time high roughly ₹780–₹800 back in mid-2021. Since then it has been making lower highs which is a classic sign of a primary downtrend. The price is trading around ₹397. It has lost nearly 50% of its value from the peak. The stock is currently sitting near a crucial support zone ₹380–₹400. This area acted as a base several times between 2021 and 2024. Head and shoulders pattern if you look at the price movement between 2021 and 2024 there is a large messy Head and Shoulders topping pattern. The breakdown below the ₹440 level the neckline accelerated the recent drop. The price swings are getting smaller narrowing which suggests that the stock is searching for a bottom but lacks the buying force to start a new rally. For long-term investors the current price is near a historical support zone. However don't rush. Wait for the price to stop falling and start moving sideways consolidation before entering. For Traders avoid aggressive buying until the stock consistently closes above the ₹450 mark with high volume. NEWS The current supply crisis in the Middle East has created a high-risk environment for Gujarat Gas because the company relies heavily on imported LNG which has seen prices skyrocket to over $25/mm Btu. By declaring Force Majeure and cutting supply to industrial customers by nearly 50% the company is protecting its margins but will likely see a significant drop in total sales volume this quarter. While the stock showed a slight recovery today March 11 due to recent gas price hikes and government intervention the overall sentiment remains cautious and bearish until global supply chains stabilize. Essentially the high cost of raw materials and the inability to provide full supply to industries are the biggest short-term Red Flags for the stock's performance.