Mahanagar Gas Ltd has formed a double bottom pattern on the 2-hour chart, signaling a potential near-term bullish reversal following a prolonged decline. The technical formation indicates strong defense by buyers at lower levels, with a breakout above the neckline suggesting strengthening buying interest and potential upside momentum.

Technical Pattern Analysis

The double bottom pattern reflects a potential trend reversal after a decline, where prices form two similar lows near a support zone. A decisive breakout above the neckline signals strengthening buying interest, suggesting sellers are losing control and upside momentum could build.

On Tuesday's session, Mahanagar Gas Ltd sustained above the neckline after forming the double bottom pattern. The move, supported by improving buying interest, indicates emerging near-term bullish momentum. Continued holding above this level could strengthen upside prospects and confirm the reversal signal.

Technical Indicator Confirmation

Multiple technical indicators provide mixed signals for the stock's near-term direction:

RSI Analysis: The daily RSI remained flat amid heightened volatility. After recovering from 40.00 last Friday session to 47.00 on Monday, the RSI remained flat on Tuesday due to geopolitical uncertainty and broader index volatility.

MACD Signal: The Blue MACD line crossed above the orange signal line, with the histogram turning green, indicating bullish momentum building in the stock.

Moving Averages: On the 2-hour timeframe, the 5-day moving average has crossed above the 9-day moving average, further confirming a bullish trend alignment.

Volume Analysis: The Price Volume Indicator confirmed the neutral trend, as volume activity remained flat and lacked strong directional conviction.

Stock Performance Overview

Mahanagar Gas Limited operates as one of India's largest City Gas Distribution companies with over 30 years of consistent growth. The company serves a 45,691 sq km area including Mumbai, Thane, and Raigad through an extensive infrastructure featuring an 8,062 km pipeline network and 485 CNG stations.

Recent Price Performance

Despite the bullish technical pattern, the stock has faced significant headwinds in recent periods:

Trading Implications

The formation of a double bottom suggests scope for further upside momentum. A sustained close above the key ₹1,060.00 support level, ideally accompanied by improved buying volume, would validate the reversal and reduce the risk of a false breakout. The former resistance near ₹1,060.00 has now turned into immediate support, and continued trading above this level would strengthen bullish control in the near term.

In a double bottom setup, upside targets are typically measured using immediate resistance levels above the neckline. Traders often use these zones to book partial or full profits while closely monitoring price action for continuation or signs of exhaustion.

Mumbai's compressed natural gas (CNG) supply faced a significant disruption due to damage to GAIL's main gas pipeline, affecting transportation services across the city and neighboring areas. The incident, which occurred inside the RCF compound, has led to widespread impact on various modes of public transport.

Impact on Transportation

The pipeline damage has resulted in:

• Disruption of CNG supply to Mahanagar Gas 's (MGL) City Gate Station at Wadala
• Affected majority of autorickshaws and taxis, including popular ride-hailing services Ola and Uber
• Impacted some public transport buses across Mumbai, Thane, and Navi Mumbai

Residential Gas Supply

Despite the widespread disruption to transportation services, MGL has prioritized residential piped gas supply, ensuring minimal impact on household consumers.

Cause of Disruption

The CNG supply interruption was attributed to third-party damage to GAIL's main gas pipeline within the RCF compound. The exact nature and extent of the damage, as well as the timeline for repairs, were not immediately available.

Implications for Commuters

This disruption is likely to cause significant inconvenience for daily commuters who rely on CNG-powered vehicles for their transportation needs. The affected areas include:

Commuters are advised to seek alternative transportation options or expect potential delays and reduced availability of CNG-powered vehicles until the situation is resolved.

As the city grapples with this unexpected disruption, authorities and gas supply companies are likely working to address the issue and restore normal CNG supply. However, no official statement regarding the expected timeline for resolution has been provided at this time.