Key Events This Week
Jan 27: Formation of Death Cross signalling bearish trend
Jan 28: Downgrade to Strong Sell by MarketsMOJO amid flat financials
Jan 30: Week closes at Rs.0.57, down 1.72% for the week
27 January 2026: Death Cross Formation Signals Bearish Momentum
On 27 January, Adcon Capital Services Ltd’s stock price remained flat at Rs.0.58, while the Sensex advanced 0.50% to 35,786.84. This day marked the formation of a Death Cross, a critical technical indicator where the 50-day moving average crossed below the 200-day moving average. This pattern is widely interpreted as a signal of a potential prolonged downtrend and weakening momentum.
The Death Cross reflects intensified selling pressure over recent months, dragging the short-term average below the long-term trend. For a micro-cap stock like Adcon Capital, with a market capitalisation of approximately ₹12 crores, this technical development is particularly concerning given its historical underperformance. Over the past year, the stock has declined 40.63%, sharply underperforming the Sensex’s 8.61% gain.
Additional technical indicators such as the bearish MACD on weekly and monthly charts, and the Know Sure Thing oscillator, reinforce the negative outlook. The Relative Strength Index (RSI) does not yet indicate oversold conditions, suggesting further downside risk remains before any potential recovery.
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28 January 2026: Downgrade to Strong Sell Amidst Weak Fundamentals
On 28 January, the stock declined 1.72% to Rs.0.57, while the Sensex surged 1.12% to 36,188.16. This day saw MarketsMOJO downgrade Adcon Capital Services Ltd from a Sell to a Strong Sell rating, citing flat financials and deteriorating fundamentals as key drivers.
The company’s average Return on Equity (ROE) stands at a low 3.04%, well below typical NBFC sector averages of 10-15%. The latest quarterly results for Q2 FY25-26 showed a Profit Before Tax (PBT) excluding other income of just ₹0.38 crore and Earnings Per Share (EPS) at ₹0.01, indicating stagnation in profitability. Despite an attractive Price-to-Book (P/B) ratio of 0.3, these weak earnings and flat financial trends have overshadowed valuation benefits.
Technically, the stock’s Mojo Score dropped to 26.0, categorised as Strong Sell, reflecting poor momentum and limited upside potential. The downgrade highlights the company’s challenges in a sector where many peers have shown recovery and growth, leaving Adcon Capital isolated with subdued performance and weak market sentiment.
29 January 2026: Continued Price Decline Amid Sensex Gains
On 29 January, Adcon Capital’s stock price slipped further by 1.75% to Rs.0.56, while the Sensex posted a modest gain of 0.22% to 36,266.59. The continued decline in share price amid a broadly positive market underscores the stock’s relative weakness and ongoing bearish momentum following the Death Cross and downgrade.
Trading volume remained moderate at 255,801 shares, reflecting steady investor caution. The stock’s persistent underperformance relative to the Sensex’s gains highlights the challenges faced by this micro-cap NBFC in regaining investor confidence.
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30 January 2026: Slight Recovery on Final Trading Day
On the final trading day of the week, 30 January, Adcon Capital rebounded slightly, gaining 1.79% to close at Rs.0.57. The Sensex, however, declined 0.22% to 36,185.03. This modest uptick in the stock price did little to offset the overall weekly loss of 1.72%.
Volume on this day was 227,820 shares, indicating continued investor caution. The slight recovery may reflect short-term technical buying, but the broader negative trend and fundamental concerns remain dominant factors influencing the stock’s trajectory.
Weekly Price Performance Comparison
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-27 | Rs.0.58 | +0.00% | 35,786.84 | +0.50% |
| 2026-01-28 | Rs.0.57 | -1.72% | 36,188.16 | +1.12% |
| 2026-01-29 | Rs.0.56 | -1.75% | 36,266.59 | +0.22% |
| 2026-01-30 | Rs.0.57 | +1.79% | 36,185.03 | -0.22% |
Key Takeaways
Bearish Technical Signals: The formation of the Death Cross on 27 January is a significant bearish indicator, confirmed by other momentum oscillators and moving averages, signalling potential prolonged weakness.
Fundamental Weakness: The downgrade to Strong Sell reflects flat financial performance, low ROE of 3.04%, and minimal earnings growth, despite an attractive valuation on P/B ratio of 0.3.
Relative Underperformance: The stock declined 1.72% over the week while the Sensex gained 1.62%, highlighting the stock’s continued struggle amid a broadly positive market environment.
Micro-Cap Risks: With a modest market capitalisation and low liquidity, Adcon Capital remains vulnerable to volatility and investor sentiment shifts.
Conclusion
Adcon Capital Services Ltd’s week was dominated by negative developments, including the technical Death Cross formation and a downgrade to Strong Sell by MarketsMOJO. These factors, combined with weak financial metrics and persistent underperformance relative to the Sensex, underscore the challenges facing this micro-cap NBFC. While the stock’s valuation appears attractive, the fundamental and technical signals suggest caution. Investors should closely monitor upcoming financial results and sector dynamics before considering exposure to this stock.
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