Indian benchmark indices are trading mixed on Tuesday morning with Nifty trading with miniscule gain of 0.05%, while Sensex is marginally down. Despite frontline indices trading flat, stock specific action continues on D-Street with some notable stocks hitting fresh 52-week high on Tuesday.
One such stock is Gail (India) Limited, a Maharatna PSU and India’s flagship natural gas processing and distribution company. The stock on Tuesday hit a fresh 52-week high of Rs 113.95.
From a technical standpoint- The stock has broken out of a symmetrical and ascending triangle like pattern. The higher volume validates the breakout. The stock is above the moving average ribbon and above all the key short- and long-term moving averages.
The stock is currently trading 3% above the 20DMA and 5.2% above the 50DMA. The MACD has given a fresh buy signal. The RSI has entered into the strong bullish zone. The Elder impulse system has formed a bullish bar. It cleared the Anchored VWAP resistance and traded above the Ichimoku cloud. The TSI has also given a fresh buys signal. In short, the stock has broken out of a bullish pattern with volume. A move above Rs.112 is positive and the stock has the potential to touch levels of Rs 122 in the short to medium term. On the downside the stock has support placed around levels of Rs 108.
At the current share price of Rs 112.90, the dividend yield of this Maharatna PSU stands at 4.42%. In the past 12 months, Gail (India) Ltd has declared an equity dividend amounting to Rs 5 per share. Company has declared a whopping 46 dividends since September 3, 2001.
The next board meeting for GAIL (India) Ltd is on May 18, 2023 for the purpose of Audited Results. Interestingly, Mutual Funds have increased holdings from 7.68% to 8.45% in the March 2023 quarter. The number of Mutual Funds schemes have increased from 29 to 31 in March 2023.
Keep this Navratna PSU Stock on your watchlist.