Mahanagar Gas Rallies After PNGRB Tariff Move: SEBI RA Sees Fresh Upside After Breakout

Mahanagar Gas (MGL) shares rose 3% on Friday after the Petroleum and Natural Gas Regulatory Board (PNGRB) approved amendments to the Natural Gas Pipeline Tariff Regulations, 2025, leading to revisions in CNG and PNG prices across several cities.

SEBI-registered analyst Financial Independence noted that the stock has decisively broken out of a key resistance zone, positioning itself for a potential upside in the near term.

After months of sideways consolidation, MGL broke above the ₹1,525 - ₹1,550 resistance zone. At the time of writing, Mahanagar Gas shares were up 2.16% to ₹1,540.60.

They added that the technical charts are showing a bullish candle, backed by strong volumes, which adds credibility to the breakout.

The stock has exited a multi-month range, with the relative strength index (RSI) jumping to 71.8. Despite showing strong momentum, the RSI levels indicate that the stock is in an overbought zone, the analyst said.

If the price sustains above ₹1,585, the stock could aim for upside targets in the ₹1,660 - ₹1,700 range, a 7% upside, they said. On the downside, immediate support has shifted to the ₹1,500 - ₹1,525 zone, in case of any pullback.

A visible accumulation is seen in the base formation, which strengthens the bullish case.

Market participants could make fresh entries if the stock sees a pullback towards ₹1,525, the analyst recommended, before cautioning against a stop-loss below ₹1,490.

Earlier this week, domestic brokerage firm Axis Securities flagged Mahanagar Gas as one of the three stocks to trade in the short term.

Year-to-date, the stock has risen over 20%.

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