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Despite a drop in net profit, this stock soared over 4% on August 08; do you own it?
![Despite a drop in net profit, this stock soared over 4% on August 08; do you own it? Despite a drop in net profit, this stock soared over 4% on August 08; do you own it?](https://storage.googleapis.com/5paisa-prod-storage/files/2022-08/Upper%20Circuit%20Stocks.jpg)
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Last Updated: 8th August 2022 - 11:48 am
MGL has soared over 4% in Monday’s trading session with huge volume.
The stock of Mahanagar Gas Limited (MGL) has jumped over 4% during the initial hours of Monday’s trading session. With this, it has soared over its prior swing high level of Rs 813 and recorded a huge volume. The volume is found to be greater than the 10-day, 30-day, and 50-day average volume. Moreover, the volume has risen for the third consecutive day, indicating an increasing participation level in the stock. Interestingly, the stock has jumped over 13% from its prior swing low level of Rs 725, in just 9 trading sessions. Also, it has risen over all its key moving averages, thus showcasing strong bullishness.
MGL declared its quarterly results last weekend, which saw a dip of 9% in its net profits, and revenue from operations grew more than double. The high cost of natural gas due to ongoing conflict between Russia and Ukraine has fuelled margin constraints due to which the company had to face higher cost of operations. However, the company has had a second price hike last week to offset the higher operating cost. Moreover, a fall in energy prices is likely to improve the situation in upcoming quarters.
As per the technical parameters, the stock is in a strong uptrend, The RSI (65.64) indicates strong strength in the stock. The MACD had indicated a bullish crossover last week and signals potential upside. The OBV continues to rise as volume continues to soar and shows strong buying interest. The Elder Impulse system has indicated a fresh buy, while TSI and KST indicators also show bullishness. Overall, the stock is expected to trade higher in the coming days.
The stock is expected to test the level of Rs 900, followed by Rs 1000 in the medium term. It provides good trading opportunities, and its momentum is likely to attract swing traders’ attention. Keep an eye on this stock to track its further development.
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