Allcargo Logistics Ltd Technical Momentum Shifts Amid Prolonged Underperformance

Price Movement and Market Context

On 2 Feb 2026, Allcargo Logistics Ltd closed at ₹10.25, down 1.63% from the previous close of ₹10.42. The stock traded within a narrow intraday range, hitting a high of ₹10.59 and a low of ₹10.15. This price action remains significantly below its 52-week high of ₹42.89, underscoring the prolonged downtrend the stock has endured over the past year.

Comparatively, the Sensex has shown resilience, with a 1-year return of +5.16%, while Allcargo Logistics has plummeted by 75.5% over the same period. The disparity widens further over longer horizons, with the stock down 86.81% over three years and 71.77% over ten years, contrasting sharply with the Sensex’s robust gains of 35.67% and 224.57% respectively. This stark underperformance highlights the challenges faced by the company within the transport services sector.

Technical Trend Evolution

The technical trend for Allcargo Logistics has shifted from a strongly bearish to a mildly bearish stance, reflecting a tentative easing of downward pressure. This nuanced change is supported by a mixed bag of technical signals across different timeframes and indicators.

The Moving Averages on the daily chart remain bearish, indicating that the short-term price momentum is still negative. However, the weekly and monthly MACD (Moving Average Convergence Divergence) readings present a more optimistic picture. The weekly MACD has turned mildly bullish, suggesting that momentum may be building for a potential recovery or at least a consolidation phase. Conversely, the monthly MACD remains bearish, signalling that the longer-term downtrend is yet to be decisively reversed.

Similarly, the Relative Strength Index (RSI) readings are bullish on both weekly and monthly charts, indicating that the stock is gaining strength and is not currently oversold. This divergence between RSI and price action could imply an impending momentum shift if buying interest intensifies.

Bollinger Bands and Other Indicators

Bollinger Bands on both weekly and monthly charts remain bearish, indicating that price volatility is still skewed towards the downside. This suggests that despite some positive momentum signals, the stock is yet to break out of its broader downtrend channel.

The KST (Know Sure Thing) indicator is bearish on both weekly and monthly timeframes, reinforcing the cautionary stance. Meanwhile, Dow Theory analysis shows no clear trend on weekly or monthly charts, reflecting market indecision and a lack of definitive directional conviction.

On-Balance Volume (OBV) also shows no discernible trend, indicating that volume flows have not yet confirmed any strong buying or selling pressure. This lack of volume confirmation often precedes a period of consolidation or sideways movement.

Mojo Score and Market Sentiment

MarketsMOJO assigns Allcargo Logistics a Mojo Score of 34.0, categorising it as a Sell with a recent upgrade from a Strong Sell rating on 1 Feb 2026. The Market Cap Grade stands at a low 3, reflecting the company’s diminished market capitalisation and investor confidence. This rating upgrade suggests that while the stock remains unattractive, some technical improvements have been recognised by the rating system.

Despite the downgrade in sentiment over recent years, the mild improvement in technical indicators could attract speculative interest from traders looking for a potential bottoming formation or short-term bounce.

Long-Term Performance and Sector Comparison

Allcargo Logistics operates within the transport services sector, which has faced headwinds due to fluctuating fuel prices, regulatory changes, and global supply chain disruptions. The company’s stock has underperformed the broader sector and market indices significantly, with a 5-year return of -59.74% compared to the Sensex’s +74.40%.

This underperformance is a critical factor for investors to consider, as it reflects both company-specific challenges and sectoral pressures. The current technical signals, while mildly encouraging, do not yet indicate a fundamental turnaround.

Investor Takeaway and Outlook

Investors analysing Allcargo Logistics Ltd should weigh the mixed technical signals carefully. The mildly bullish MACD and RSI on weekly and monthly charts hint at a potential stabilisation or modest recovery in price momentum. However, the persistent bearish signals from moving averages, Bollinger Bands, and KST indicators counsel caution.

The stock’s significant underperformance relative to the Sensex and its sector peers over multiple timeframes underscores the need for a fundamental catalyst to complement any technical recovery. Without improvements in operational performance or sector tailwinds, the technical momentum shift may remain limited in scope.

For traders, the current environment may offer short-term trading opportunities based on momentum oscillations, but longer-term investors should remain vigilant and consider alternative investments with stronger technical and fundamental profiles.

In summary, Allcargo Logistics Ltd’s technical parameters reveal a tentative shift from strong bearishness to a mildly bearish stance, with early signs of bullish momentum emerging. Yet, the overall technical and fundamental backdrop remains challenging, suggesting that investors should approach the stock with measured caution.

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