The stock touched a high of 125 in August and has been falling since then. It is forming lower highs and lower lows on the charts that indicate negative sentiment in the stock. The stock is in the oversold zone so an upside rally is possible. The stock has first resistance at 60. The company failed to deliver in the last quarter because of higher raw material costs. The order execution has not been good. However, the valuations are attractive.

The stock has been forming lower tops and bottoms for the last 5 months and from a high of 192 it has touched a low of 92. The stock has seen range bound trade in the last 5 weeks.

Shares of GAIL (India) are trading at Rs 461, up Rs 18.6, or 4.20% at the Bombay Stock Exchange (BSE) on Monday at 2:05 p.m. On reports of lower borrowing costs as the company intends to tap cheaper external commercial borrowings to fund its massive expansion programme. The scrip has touched an intra-day high of Rs 461 and low of Rs 443.30. The total volume of shares traded at the BSE is 134,851.