Allcargo Terminals Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Trend and Momentum Analysis

Recent technical assessments reveal that Allcargo Terminals Ltd’s price momentum is increasingly negative. The weekly technical trend has shifted decisively to bearish, while the daily moving averages confirm a bearish stance. The stock’s current price stands at ₹25.47, marginally down from the previous close of ₹25.52, indicating a lack of upward momentum. Intraday volatility saw a high of ₹26.44 and a low of ₹25.30, underscoring a narrow trading range with limited buying interest.

The 52-week price range remains wide, with a high of ₹40.49 and a low of ₹19.61, but the stock has failed to sustain any meaningful recovery, languishing closer to the lower end of this spectrum. This price behaviour is consistent with the deteriorating technical signals.

MACD and RSI Signals

The Moving Average Convergence Divergence (MACD) indicator on the weekly chart is firmly bearish, signalling that the stock’s short-term momentum is weakening relative to its longer-term trend. The absence of a clear monthly MACD signal suggests that the longer-term trend remains uncertain but is not yet showing signs of improvement.

Meanwhile, the Relative Strength Index (RSI) on both weekly and monthly charts is neutral, providing no clear buy or sell signals. This lack of RSI confirmation indicates that the stock is neither oversold nor overbought, but the prevailing bearish MACD and moving average signals suggest that downside risks dominate.

Bollinger Bands and Moving Averages

Bollinger Bands on weekly and monthly timeframes are mildly bearish, reflecting a contraction in price volatility accompanied by a downward bias. The daily moving averages reinforce this bearish outlook, with the stock trading below key averages, signalling that sellers currently control the price action.

The KST (Know Sure Thing) indicator on the weekly chart also aligns with this bearish momentum, further confirming the weakening trend. However, the monthly KST remains inconclusive, leaving some uncertainty over the longer-term trajectory.

Volume and Dow Theory Perspectives

On-Balance Volume (OBV) presents a mixed picture: mildly bullish on the weekly chart but mildly bearish on the monthly chart. This divergence suggests that while short-term volume trends may support some accumulation, the longer-term volume flow is not confirming a sustained uptrend.

Dow Theory analysis adds further nuance, with a mildly bullish weekly signal contrasting with a lack of clear trend on the monthly timeframe. This indicates that while there may be some short-term optimism, the broader trend remains uncertain and potentially vulnerable to further downside.

Comparative Performance and Market Context

Examining Allcargo Terminals Ltd’s returns relative to the Sensex highlights the stock’s underperformance over longer periods. Year-to-date, the stock has declined by 9.42%, significantly lagging the Sensex’s modest fall of 2.82%. Over the past year, the stock’s return was a negative 17.76%, while the Sensex gained 9.35%. This stark contrast emphasises the stock’s relative weakness within the broader market.

Shorter-term returns show some resilience, with a 1-week gain of 1.07% outperforming the Sensex’s 0.23% rise, and a 1-month gain of 4.13% versus the Sensex’s 0.77%. However, these gains have not translated into sustained momentum, as reflected in the technical indicators and longer-term returns.

Mojo Score and Ratings Update

MarketsMOJO’s latest assessment downgraded Allcargo Terminals Ltd from a Sell to a Strong Sell on 16 Feb 2026, reflecting the worsening technical and fundamental outlook. The company’s Mojo Score stands at a low 26.0, underscoring significant concerns about its near-term prospects. The Market Cap Grade is 4, indicating a micro-cap status with associated liquidity and volatility risks.

This downgrade aligns with the technical deterioration and the stock’s inability to sustain positive momentum despite occasional short-term rallies.

Implications for Investors

The confluence of bearish technical signals across multiple indicators suggests that Allcargo Terminals Ltd faces continued downward pressure in the near term. The weekly MACD and KST indicators, combined with bearish daily moving averages and mildly bearish Bollinger Bands, point to a weakening price structure.

Investors should be cautious given the stock’s relative underperformance against the Sensex and the recent downgrade to a Strong Sell rating. The neutral RSI readings imply no immediate oversold conditions, indicating that further declines cannot be ruled out before any meaningful recovery.

Given the micro-cap nature of the stock and its low Mojo Score, liquidity and volatility risks remain elevated. Those holding the stock may consider risk mitigation strategies, while prospective investors might explore higher-rated alternatives within the transport infrastructure sector or broader market.

Summary

Allcargo Terminals Ltd’s technical momentum has shifted decisively towards bearishness, with multiple indicators confirming a weakening trend. Despite short-term gains, the stock’s longer-term performance remains disappointing relative to the Sensex. The downgrade to a Strong Sell rating by MarketsMOJO further emphasises the cautious stance investors should adopt. Until technical indicators show sustained improvement, the outlook remains challenging for this transport infrastructure player.

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