Allcargo Logistics Ltd Faces Intensified Bearish Momentum Amid Technical Deterioration

Technical Momentum Shifts and Price Action

Allcargo Logistics Ltd (stock code 968239) closed at ₹8.97 on 17 Feb 2026, down 3.65% from the previous close of ₹9.31. The intraday range was between ₹8.92 and ₹9.35, hovering near its 52-week low of ₹8.92, starkly contrasting with its 52-week high of ₹38.37. This substantial decline over the past year underscores the stock’s vulnerability, with a one-year return of -73.78% compared to the Sensex’s positive 9.66% gain over the same period.

Shorter-term returns also reflect weakness, with the stock down 10.57% over the past week and 10.83% over the last month, while the Sensex remained relatively stable, declining less than 1% in the same timeframe. Year-to-date, Allcargo Logistics has lost 11.71%, significantly underperforming the benchmark’s 2.28% decline.

Moving Averages Confirm Bearish Bias

The daily moving averages for Allcargo Logistics are firmly bearish, signalling sustained downward pressure. The stock price remains below key averages, indicating a lack of short-term buying interest. This bearish alignment is consistent with the broader technical trend, which has shifted from mildly bearish to outright bearish, reflecting increased selling momentum.

MACD and RSI: Divergent Signals Across Timeframes

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On the weekly chart, the MACD remains mildly bullish, suggesting some underlying momentum could be present in the medium term. However, the monthly MACD is bearish, reinforcing the longer-term downtrend. This divergence highlights the stock’s struggle to regain sustained upward momentum.

The Relative Strength Index (RSI) adds further complexity. The weekly RSI currently offers no clear signal, hovering in a neutral zone that neither favours buyers nor sellers decisively. Conversely, the monthly RSI is bullish, indicating that the stock may be oversold on a longer timeframe and could be poised for a technical rebound if other conditions improve.

Bollinger Bands and KST Indicate Continued Downside Risk

Bollinger Bands on both weekly and monthly charts are bearish, with the price frequently touching or breaching the lower band. This suggests heightened volatility and persistent selling pressure. The Know Sure Thing (KST) indicator aligns with this view, showing bearish momentum on both weekly and monthly scales, signalling that the downtrend is likely to continue without significant catalyst.

Additional Technical Indicators and Volume Analysis

The On-Balance Volume (OBV) indicator shows no clear trend on the weekly chart but registers a mildly bearish stance on the monthly timeframe. This suggests that volume flows have not decisively supported any bullish reversal, with selling pressure dominating over the longer term.

Dow Theory assessments remain mildly bearish on both weekly and monthly charts, reinforcing the overall negative sentiment. The combination of these technical signals indicates that the stock is unlikely to break out of its downtrend without a significant change in fundamentals or market sentiment.

Mojo Score and Market Capitalisation Insights

MarketsMOJO assigns Allcargo Logistics a Mojo Score of 28.0, categorising it as a Strong Sell. This represents a downgrade from its previous Sell rating on 16 Feb 2026, reflecting deteriorating technical and fundamental metrics. The company’s market cap grade stands at 4, indicating a relatively small market capitalisation within the transport services sector, which may contribute to its heightened volatility and risk profile.

Sector and Market Context

Within the transport services sector, Allcargo Logistics’ performance starkly contrasts with broader market trends. While the Sensex has delivered a 35.81% return over three years and an impressive 259.08% over ten years, Allcargo has suffered losses of 86.49% and 70.68% respectively over the same periods. This underperformance highlights company-specific challenges amid a sector that has generally rewarded investors.

Investor Considerations and Outlook

Given the prevailing technical signals, investors should approach Allcargo Logistics with caution. The bearish momentum, confirmed by moving averages, Bollinger Bands, and KST, suggests limited near-term upside. However, the mildly bullish monthly RSI and weekly MACD hint at potential oversold conditions that could offer tactical entry points for risk-tolerant investors.

Long-term investors may need to weigh the company’s fundamental prospects alongside these technical indicators, especially considering the significant underperformance relative to the benchmark and sector peers. The downgrade to a Strong Sell rating by MarketsMOJO further emphasises the need for prudence.

Summary

Allcargo Logistics Ltd’s technical landscape has shifted decisively towards bearishness, with multiple indicators confirming sustained downward momentum. The stock’s proximity to its 52-week low, combined with weak moving averages and bearish monthly MACD and Bollinger Bands, suggests continued pressure. While some oscillators indicate potential oversold conditions, the overall technical and fundamental outlook remains negative, as reflected in the recent downgrade to a Strong Sell rating by MarketsMOJO.

Investors should carefully monitor price action and volume trends for signs of a reversal but remain cautious given the stock’s persistent underperformance relative to the Sensex and sector peers. Tactical opportunities may arise if the monthly RSI’s bullish signal materialises into a sustained recovery, but for now, the risk profile remains elevated.

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