Shares of Adani Total Gas Ltd extended their decline in Monday's trade, falling 3.97 per cent to hit a low of Rs 741.85. The stock was later seen trading 2.56 per cent lower at Rs 752.80. At this level, the counter has corrected 12.44 per cent from its 52-week high of Rs 859.70, touched on May 29.

Despite the pullback, the stock remains up around 47 per cent over the last three months.

The sharp rally in recent weeks was supported by a series of domestic compressed natural gas (CNG) price hikes.

CNG prices have been increased four times in the last two weeks amid rising global energy costs and geopolitical tensions in West Asia. The price revisions are expected to improve realisations for city gas distribution companies and could support profitability in the coming quarters.

As a key player in the city gas distribution segment, Adani Total Gas is also seen as an important beneficiary of India's push to increase the share of natural gas in the country's overall energy mix.

However, after the recent run-up, some market participants believe the stock may witness near-term consolidation.

Ravi Singh, Chief Research Officer at Master Capital Services, said, "Adani Total has witnessed a strong rally over the last few weeks, breaking out of a long consolidation phase. Positive sentiment around the gas distribution business and improving sector outlook have supported the move. However, after such a sharp rise, the stock has approached a key resistance area around Rs 820–850. Traders should be prepared for some short-term consolidation or volatility. Support is seen around Rs 740, followed by Rs 700. Despite near-term fluctuations, the broader trend remains firmly on the positive side."

AR Ramachandran, Sebi-registered research analyst at Tips2trades, said, "The stock is bearish and also overbought on daily charts with strong resistance at Rs 860. Investors should keep booking profits as a daily close below the support of Rs 714 could trigger a fall towards Rs 590 in the near term."

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, noted, "Support will be at Rs 740 and resistance at Rs 831. A decisive move above Rs 831 level may trigger a further upside towards Rs 860. The expected trading range will be between Rs 740 and Rs 860 for the short term."