Allcargo Terminals Ltd Faces Bearish Momentum Amid Technical Indicator Shifts

Technical Momentum Shifts to Bearish

Allcargo Terminals Ltd (stock code 10038966), operating within the transport infrastructure sector, has seen its technical trend deteriorate from mildly bearish to outright bearish. The daily moving averages have turned decisively negative, reflecting sustained selling pressure. The stock closed at ₹25.20 on 16 Feb 2026, down 4.00% from the previous close of ₹26.25, with intraday lows touching ₹25.11 and highs at ₹25.94.

The 52-week price range remains wide, with a high of ₹40.49 and a low of ₹19.61, indicating significant volatility over the past year. Despite this, the current price is closer to the lower end of this range, underscoring the recent weakness.

MACD and RSI Signal Bearish Outlook

The Moving Average Convergence Divergence (MACD) indicator on the weekly chart is firmly bearish, signalling that momentum is skewed towards sellers. Although the monthly MACD reading is not explicitly bearish, it does not provide any bullish counterbalance. The Relative Strength Index (RSI) on both weekly and monthly timeframes remains neutral, offering no immediate oversold or overbought signals, which suggests the stock could continue its downward trajectory without a near-term technical rebound.

Bollinger Bands on weekly and monthly charts are mildly bearish, indicating that price volatility is skewed towards the downside but not yet at extreme levels. This mild bearishness aligns with the broader technical picture of a stock under pressure but not yet capitulating.

Additional Technical Indicators Confirm Weakness

The Know Sure Thing (KST) oscillator on the weekly timeframe is bearish, reinforcing the negative momentum. Meanwhile, the On-Balance Volume (OBV) indicator is mildly bearish on both weekly and monthly charts, suggesting that volume trends are not supporting any price recovery. The Dow Theory assessment presents a mildly bullish weekly signal, but this is overshadowed by the prevailing bearishness in other indicators and the absence of a monthly trend.

Comparative Performance Against Sensex

When compared to the broader market benchmark, the Sensex, Allcargo Terminals Ltd has underperformed significantly over multiple time horizons. Year-to-date, the stock has declined by 10.38%, whereas the Sensex has fallen by a more modest 3.04%. Over the past year, the stock’s return stands at -11.73%, contrasting sharply with the Sensex’s positive 8.52% gain. This underperformance highlights the stock’s vulnerability amid a generally resilient market environment.

Mojo Score and Ratings Reflect Deterioration

MarketsMOJO assigns Allcargo Terminals Ltd a Mojo Score of 31.0, categorising it with a Sell rating. This represents a downgrade from a previous Strong Sell grade as of 5 Jan 2026, signalling a slight improvement but still firmly negative sentiment. The market capitalisation grade is a low 4, indicating limited scale and liquidity relative to peers.

The downgrade in technical ratings and the modest improvement in Mojo Grade suggest that while the stock may have stabilised somewhat from extreme bearishness, it remains a weak candidate for accumulation given the prevailing negative momentum and sector headwinds.

Sector and Industry Context

Within the transport infrastructure sector, Allcargo Terminals Ltd faces challenges from subdued demand and competitive pressures. The sector itself has shown mixed signals, with some infrastructure stocks benefiting from government spending, while others, particularly in logistics and terminals, grapple with margin pressures and fluctuating volumes.

Given the stock’s technical deterioration and underperformance relative to the Sensex, investors should exercise caution. The bearish daily moving averages and weekly MACD suggest that any rallies may be short-lived without fundamental catalysts.

Price Momentum and Moving Averages

The daily moving averages have turned bearish, with the stock trading below its 50-day and 200-day moving averages. This technical configuration is typically viewed as a negative signal, indicating that the stock is in a downtrend. The lack of RSI signals on weekly and monthly charts further implies that the stock is not yet oversold, leaving room for further declines.

Investors should monitor the stock’s ability to hold the ₹25.00 support level, as a break below this could accelerate selling pressure. Conversely, a sustained move above the 50-day moving average near ₹27.00 would be required to signal a potential reversal in momentum.

Investor Takeaway

Allcargo Terminals Ltd’s technical indicators collectively point to a bearish outlook in the near term. The stock’s underperformance relative to the Sensex and the transport infrastructure sector’s mixed environment suggest that investors should approach with caution. The downgrade from Strong Sell to Sell by MarketsMOJO reflects a marginally less negative stance but does not indicate a turnaround.

For investors considering exposure to this stock, it is prudent to wait for clear signs of technical recovery, such as a sustained break above key moving averages and improvement in momentum indicators like MACD and RSI. Until then, the risk of further downside remains elevated.

Monitoring volume trends and broader sector developments will be critical in assessing any potential shift in the stock’s trajectory.

Long-Term Performance Context

While short-term technicals are bearish, it is worth noting that Allcargo Terminals Ltd has lagged the Sensex significantly over the past year, with a negative return of 11.73% compared to the Sensex’s 8.52% gain. Over longer horizons such as three and five years, data is not available for the stock, but the Sensex’s robust returns of 36.73% and 60.30% respectively highlight the stock’s relative underperformance.

This divergence emphasises the importance of technical and fundamental analysis in identifying stocks that can outperform the broader market, especially in cyclical sectors like transport infrastructure.

Conclusion

In summary, Allcargo Terminals Ltd is currently navigating a challenging technical landscape with bearish momentum dominating key indicators. The downgrade in Mojo Grade and the negative signals from MACD, moving averages, and OBV suggest that the stock is unlikely to rebound in the immediate term without a fundamental catalyst. Investors should remain cautious and consider alternative opportunities within the sector or broader market that demonstrate stronger technical and fundamental profiles.

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