Current Price Action and Market Context
Alembic Ltd closed at ₹98.75 on 10 Feb 2026, up from the previous close of ₹97.14. The stock traded within a range of ₹97.56 to ₹99.83 during the day, remaining well below its 52-week high of ₹125.70 but comfortably above the 52-week low of ₹85.55. This price movement reflects a moderate recovery attempt after a period of subdued performance.
Comparatively, Alembic’s one-week return stands at 7.10%, significantly outperforming the Sensex’s 2.94% gain over the same period. However, the year-to-date return is negative at -2.29%, slightly worse than the Sensex’s -1.36%. Over the longer term, the stock has underperformed the benchmark, with a one-year return of -12.42% against Sensex’s 7.97%, and a five-year return of -4.45% compared to Sensex’s robust 63.78%. Nevertheless, the three-year and ten-year returns of 47.39% and 165.81% respectively indicate some resilience over extended horizons.
Technical Trend and Momentum Indicators
The technical trend for Alembic Ltd has shifted from bearish to mildly bearish, signalling a tentative improvement but still cautioning investors. The daily moving averages reinforce this mildly bearish stance, suggesting that short-term price momentum remains under pressure despite recent gains.
The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly timeframes, indicating that the underlying momentum is still weak. This bearish MACD reading suggests that the stock may face resistance in sustaining upward moves without stronger buying interest.
Relative Strength Index (RSI) readings on weekly and monthly charts show no clear signal, hovering in neutral zones. This lack of momentum extremes implies that the stock is neither overbought nor oversold, leaving room for directional movement but no definitive trend confirmation.
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Bollinger Bands and Price Volatility
Bollinger Bands on the weekly chart indicate a sideways trend, reflecting a consolidation phase with limited volatility expansion. On the monthly chart, the bands suggest a mildly bearish outlook, hinting at potential downward pressure if the stock fails to break above resistance levels. This mixed signal from volatility measures underscores the stock’s current indecision among market participants.
KST and Dow Theory Signals
The Know Sure Thing (KST) indicator presents a mildly bullish signal on the weekly timeframe, suggesting some positive momentum in the short term. However, the monthly KST remains bearish, indicating that longer-term momentum has yet to improve significantly. Similarly, Dow Theory analysis shows a mildly bullish trend on the weekly chart but no clear trend on the monthly scale, reinforcing the notion of short-term optimism tempered by longer-term uncertainty.
On-Balance Volume and Market Sentiment
On-Balance Volume (OBV) readings reveal no clear trend on the weekly chart but a bullish signal on the monthly timeframe. This divergence suggests that while short-term volume flow is inconclusive, longer-term accumulation may be occurring, potentially supporting future price appreciation if buying interest sustains.
Mojo Score and Analyst Ratings
Alembic Ltd’s current Mojo Score stands at 41.0, categorised as a Sell rating, a downgrade from the previous Hold grade assigned on 07 Jul 2025. This downgrade reflects deteriorating technical and fundamental factors as assessed by MarketsMOJO’s proprietary scoring system. The company’s market cap grade is 3, indicating a mid-sized market capitalisation within the Realty sector.
Investors should note that the downgrade signals caution, especially given the mixed technical signals and the stock’s underperformance relative to the Sensex over the past year and five years. The mildly bearish technical trend and bearish MACD readings reinforce the need for prudence in portfolio allocation.
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Investment Implications and Outlook
While Alembic Ltd shows signs of short-term momentum improvement, the overall technical landscape remains cautious. The mildly bearish daily moving averages and persistent bearish MACD readings on weekly and monthly charts suggest that the stock may face resistance in sustaining a meaningful uptrend without stronger fundamental catalysts or sectoral tailwinds.
Investors should weigh the stock’s recent outperformance against the Sensex in the short term with its longer-term underperformance and technical downgrades. The neutral RSI and sideways Bollinger Bands indicate a consolidation phase, which could precede either a breakout or further correction depending on market conditions.
Given the current Mojo Grade of Sell and the downgrade from Hold, a conservative approach is advisable. Monitoring volume trends and momentum indicators closely will be key to identifying any sustained reversal or deterioration in price action.
Sectoral dynamics in Realty and broader market sentiment will also play a crucial role in Alembic’s trajectory. Investors seeking exposure in this space may consider peer comparisons and alternative options with stronger technical and fundamental profiles.
Summary
In summary, Alembic Ltd’s technical parameters reveal a nuanced momentum shift. The stock has moved from a bearish to a mildly bearish trend, supported by mixed signals from MACD, RSI, Bollinger Bands, and KST indicators. While short-term momentum shows some improvement, longer-term technicals remain subdued, reflected in the recent downgrade to a Sell rating by MarketsMOJO. Investors should exercise caution and consider broader market and sector trends before committing to positions in Alembic Ltd.
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