Alembic Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview

The stock’s overall technical trend has transitioned from a sideways pattern to a mildly bearish stance. This shift is underscored by the daily moving averages, which currently indicate a mildly bearish outlook. Alembic Ltd’s current price stands at ₹101.95, slightly above the previous close of ₹101.06, with intraday highs and lows of ₹102.35 and ₹100.95 respectively. The 52-week trading range remains broad, with a high of ₹137.60 and a low of ₹85.55, reflecting significant volatility over the past year.

MACD Signals: Divergent Weekly and Monthly Perspectives

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD is mildly bullish, suggesting some upward momentum in the short term. However, the monthly MACD reading is mildly bearish, signalling that longer-term momentum is weakening. This divergence implies that while short-term traders may find opportunities, the broader trend remains under pressure.

RSI and Momentum Indicators

The Relative Strength Index (RSI) on the weekly chart currently offers no clear signal, hovering in a neutral zone that neither indicates overbought nor oversold conditions. Conversely, the monthly RSI is bullish, hinting at underlying strength over the longer term. Complementing this, the Know Sure Thing (KST) indicator is mildly bullish on the weekly timeframe but mildly bearish monthly, reinforcing the mixed momentum narrative.

Bollinger Bands and Price Volatility

Bollinger Bands on the weekly chart show a sideways movement, indicating limited volatility and a consolidation phase. On the monthly scale, however, the bands suggest a mildly bearish trend, consistent with the broader technical signals pointing to some downside risk. This pattern suggests that while the stock is currently range-bound in the short term, there is potential for downward pressure to build over the coming months.

Volume and Trend Confirmation

On-Balance Volume (OBV) analysis reveals a bullish trend on the weekly chart, indicating that buying volume is supporting the recent price gains. However, the monthly OBV shows no clear trend, reflecting uncertainty among longer-term investors. Dow Theory assessments align with these findings, showing a mildly bullish weekly trend but no definitive monthly trend, further emphasising the stock’s technical indecision.

Comparative Performance Analysis

Examining Alembic Ltd’s returns relative to the Sensex provides further context to its technical signals. Over the past week, the stock has outperformed the benchmark with a 0.88% gain compared to the Sensex’s 0.26% decline. This outperformance extends over the last month, where Alembic rose 1.79% while the Sensex fell 0.53%. Year-to-date, the stock is marginally positive at 0.88%, slightly ahead of the Sensex’s near-flat performance (-0.04%).

However, longer-term returns paint a more challenging picture. Over the past year, Alembic Ltd has declined by 23.09%, significantly underperforming the Sensex’s 8.51% gain. Over three years, the stock has appreciated 43.29%, slightly outperforming the Sensex’s 40.02%. Yet, over five and ten years, Alembic has lagged considerably, with a 3.59% loss over five years versus the Sensex’s 77.96% gain, and a 113.96% gain over ten years compared to the Sensex’s 225.63% rise. These figures highlight the stock’s volatility and inconsistent performance relative to the broader market.

Mojo Score and Grade Implications

Alembic Ltd’s current Mojo Score stands at 41.0, categorised as a Sell, reflecting the recent downgrade from Hold on 7 July 2025. This downgrade is consistent with the mildly bearish technical trend and mixed indicator signals. The company’s Market Cap Grade is 3, indicating a mid-tier market capitalisation within its sector. Investors should weigh these technical assessments alongside fundamental factors before making investment decisions.

Sector and Industry Context

Operating within the Realty sector, Alembic Ltd faces sector-specific challenges including regulatory changes, interest rate fluctuations, and demand-supply dynamics in the property market. The mixed technical signals may reflect broader sector volatility, with investors cautious amid macroeconomic uncertainties. The mildly bearish monthly indicators suggest that the stock could face headwinds if sector conditions deteriorate further.

Investor Takeaway

In summary, Alembic Ltd’s technical landscape is characterised by a delicate balance between short-term bullish momentum and longer-term bearish pressures. The mildly bullish weekly MACD and OBV suggest some near-term buying interest, but the monthly bearish MACD, Bollinger Bands, and KST indicators caution investors about potential downside risks. The stock’s recent outperformance relative to the Sensex in the short term is encouraging, yet its significant underperformance over the past year and mixed longer-term returns warrant a cautious approach.

Given the downgrade to a Sell rating and the current Mojo Score of 41.0, investors should carefully monitor key technical levels and broader market conditions before committing fresh capital. Those with existing positions might consider tightening stop-losses or reducing exposure, while prospective buyers may prefer to wait for clearer confirmation of trend reversal or sustained bullish momentum.

Technical Indicator Summary:

• Daily Moving Averages: Mildly Bearish


• Weekly MACD: Mildly Bullish


• Monthly MACD: Mildly Bearish


• Weekly RSI: Neutral


• Monthly RSI: Bullish


• Weekly Bollinger Bands: Sideways


• Monthly Bollinger Bands: Mildly Bearish


• Weekly KST: Mildly Bullish


• Monthly KST: Mildly Bearish


• Weekly OBV: Bullish


• Monthly OBV: No Trend


• Weekly Dow Theory: Mildly Bullish


• Monthly Dow Theory: No Trend

These mixed signals highlight the importance of a nuanced, multi-timeframe analysis when evaluating Alembic Ltd’s stock prospects.

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