Technical Trend Overview
IGL’s technical trend has deteriorated from mildly bearish to outright bearish, signalling increased downside pressure. The stock closed at ₹190.65 on 6 January 2026, down 1.78% from the previous close of ₹194.10. This decline comes amid a 52-week high of ₹229.20 and a low of ₹172.00, positioning the current price closer to the lower end of its annual range.
Daily moving averages reinforce the bearish outlook, with the stock trading below key averages, indicating sustained selling pressure. The Moving Average Convergence Divergence (MACD) remains bearish on both weekly and monthly charts, underscoring a persistent negative momentum. Similarly, Bollinger Bands on weekly and monthly timeframes suggest the stock is trending towards the lower band, a classic sign of bearish sentiment.
Momentum Indicators and Oscillators
The Relative Strength Index (RSI) on weekly and monthly charts currently shows no clear signal, hovering in a neutral zone. This suggests that while the stock is not yet oversold, it lacks the momentum to mount a significant recovery in the near term. The Know Sure Thing (KST) indicator, a momentum oscillator, also remains bearish across weekly and monthly periods, reinforcing the downtrend.
On the other hand, Dow Theory and On-Balance Volume (OBV) indicators show no definitive trend on weekly and monthly scales, indicating that volume and price action have not yet confirmed a reversal or acceleration of the current trend. This lack of confirmation adds to the cautious stance among technical analysts.
Comparative Performance Against Sensex
IGL’s returns have lagged significantly behind the benchmark Sensex across multiple time horizons. Over the past week, the stock declined by 2.23%, while the Sensex gained 0.88%. Year-to-date, IGL is down 2.11% compared to a 0.26% rise in the Sensex. The one-year return paints a starker picture, with IGL falling 13.58% against the Sensex’s 7.85% gain.
Longer-term returns also highlight underperformance. Over three years, IGL’s return stands at -9.58%, while the Sensex surged 41.57%. The five-year and ten-year returns show a similar trend, with IGL down 26.58% versus Sensex’s 76.39% gain over five years, and a more positive 241.76% gain over ten years compared to Sensex’s 234.01%. This suggests that while the stock has delivered strong long-term growth, recent years have been challenging.
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MarketsMOJO Rating and Quality Assessment
MarketsMOJO recently upgraded IGL’s Mojo Grade from Sell to Hold on 2 January 2026, reflecting a cautious but less negative outlook. The Mojo Score stands at 50.0, indicating a neutral stance. The Market Cap Grade is 3, suggesting a mid-tier valuation relative to peers in the gas sector.
This rating change is consistent with the technical signals, which show a bearish momentum but no immediate capitulation. Investors should note that the Hold rating implies limited upside potential in the near term, with risks of further downside if bearish trends persist.
Price Action and Volatility
On 6 January 2026, IGL’s intraday price fluctuated between ₹190.30 and ₹194.50, closing near the day’s low. This price action, combined with the negative day change of 1.78%, suggests selling pressure remains dominant. The proximity to the 52-week low of ₹172.00 highlights the risk of further declines if support levels fail to hold.
Volatility remains elevated, as indicated by the Bollinger Bands’ widening on weekly and monthly charts. This increased volatility often accompanies bearish phases, signalling uncertainty among traders and investors.
Outlook and Investor Considerations
Given the current technical landscape, investors should approach IGL with caution. The bearish MACD, KST, and moving averages suggest that the stock may continue to face downward pressure in the short to medium term. The neutral RSI and lack of volume confirmation via OBV and Dow Theory indicators imply that a clear reversal is not imminent.
Long-term investors may find value in IGL’s historical performance, especially its robust ten-year return of 241.76%, which outpaces the Sensex. However, the recent underperformance and technical deterioration warrant close monitoring of key support levels and broader market conditions.
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Sector and Industry Context
IGL operates within the gas sector, a segment that has faced mixed fortunes amid fluctuating energy prices and regulatory developments. While the sector has growth potential driven by urbanisation and cleaner fuel adoption, it remains sensitive to commodity price swings and policy changes.
Within this context, IGL’s technical weakness may partly reflect broader sector challenges. Investors should consider sector trends alongside company-specific factors when evaluating IGL’s prospects.
Summary
Indraprastha Gas Ltd’s technical indicators collectively point to a bearish momentum shift, with MACD, KST, Bollinger Bands, and moving averages signalling downside risk. The recent upgrade to a Hold rating by MarketsMOJO tempers the outlook but does not suggest immediate recovery. Comparative returns lagging the Sensex further highlight the stock’s recent struggles.
Investors are advised to monitor key technical levels and sector developments closely. While long-term fundamentals remain intact, the near-term technical picture calls for prudence and selective exposure.
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