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“GUJARAT GAS Breaks Out of Descending Channel, Fueling Bullish Sentiment”



Gujarat Gas Limited (GGL), formerly known as GSPC Distribution Networks Limited (GDNL), is a government company under the Companies Act 2013. It operates in the natural gas sector in India, focusing on distributing natural gas from its sources to areas where it’s needed, including homes, businesses, and industries. GGL provides services like supplying Compressed Natural Gas (CNG) for vehicles and Piped Natural Gas (PNG) for cooking and heating purposes. Its operations cover South & Central Gujarat and Saurashtra regions, playing a crucial role in delivering clean and efficient energy solutions to various segments of society.


In the third quarter of the fiscal year 2023-24, Gujarat Gas experienced a standalone net profit after tax (PAT) of ₹220.34 crore, marking a drop of about 41% from the profit of ₹371.26 crore recorded in the same period last year. However, there was a positive development in the revenue from operations, which increased by almost 7% year-on-year, reaching ₹4,084.26 crore for the quarter. Comparatively, in the corresponding quarter of the previous year, revenue from operations was ₹3,821.28 crore.

TECHNICAL OUTLOOK

The breakout of Gujarat Gas Limited (GGL) from a descending channel pattern suggests optimism among traders. Additionally, the stock’s closure above the 21-day moving average, accompanied by a strong bullish candle, reinforces this positive outlook. To capitalize on this trend, it’s prudent to keep an eye on the 580 level. If the stock maintains its position above this mark, it could potentially reach targets of 600 and 620. To mitigate risks, consider setting a stop loss at 545 to protect against any potential downturns.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease.

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