Technical Trend Transition and Price Movement
On 18 Feb 2026, Carborundum Universal’s share price closed at ₹831.80, up from the previous close of ₹819.40. The intraday range was relatively narrow, with a low of ₹820.70 and a high of ₹837.00. This price action reflects a mild recovery from the 52-week low of ₹748.70, though still well below the 52-week high of ₹1,127.00. The technical trend has shifted from bearish to mildly bearish, signalling a tentative improvement in momentum but not yet a full reversal.
The daily moving averages remain mildly bearish, indicating that short-term price averages are still trending lower, but the gap is narrowing. This suggests that while the downtrend has not been decisively broken, selling pressure may be easing.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced view. On a weekly basis, the MACD is mildly bullish, hinting at a potential upward momentum building over the medium term. However, the monthly MACD remains bearish, reflecting longer-term downward pressure. This divergence between weekly and monthly MACD readings suggests that while short-term momentum is improving, the broader trend remains under strain.
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, leaving room for directional movement in either direction depending on upcoming market catalysts.
Bollinger Bands and Volatility Assessment
Bollinger Bands on weekly and monthly timeframes are mildly bearish, signalling that price volatility remains somewhat subdued but with a downward bias. The bands have not expanded significantly, suggesting that volatility has not spiked, which often precedes strong directional moves. This mild bearishness in volatility aligns with the overall cautious tone of the technical outlook.
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Other Technical Indicators: KST, Dow Theory, and OBV
The Know Sure Thing (KST) indicator remains bearish on both weekly and monthly charts, reinforcing the notion that momentum has not fully turned positive. Dow Theory analysis shows no clear trend on the weekly timeframe but indicates a mildly bearish stance monthly, consistent with the cautious medium-term outlook.
On the volume front, the On-Balance Volume (OBV) indicator shows no trend weekly but is bullish monthly. This suggests that while short-term volume patterns are inconclusive, longer-term accumulation by investors may be underway, potentially supporting a future price recovery.
Comparative Performance Versus Sensex
Carborundum Universal’s returns relative to the Sensex over various periods highlight challenges and opportunities. Over the past week, the stock gained 0.64%, outperforming the Sensex’s decline of 0.98%. Over one month, the stock rose 2.31%, again ahead of the Sensex’s marginal fall of 0.14%. However, year-to-date, the stock has declined 2.90%, slightly worse than the Sensex’s 2.08% fall.
Longer-term performance remains a concern. Over one year, Carborundum Universal has fallen 14.25%, contrasting with the Sensex’s robust 9.81% gain. Over three years, the stock is down 15.17%, while the Sensex has surged 36.80%. Despite this, the five-year and ten-year returns are more encouraging, with the stock up 59.65% and 403.21% respectively, outpacing the Sensex’s 61.40% and 256.90% gains. This suggests that while recent years have been challenging, the company has delivered substantial long-term value.
Mojo Score and Analyst Ratings
MarketsMOJO assigns Carborundum Universal a Mojo Score of 34.0, categorising it as a Sell. This is an upgrade from a previous Strong Sell rating dated 17 Feb 2026, reflecting a slight improvement in outlook. The Market Cap Grade stands at 3, indicating a mid-tier capitalisation relative to peers in the Industrial Products sector.
The upgrade from Strong Sell to Sell suggests that while the stock remains under pressure, some technical and fundamental factors have improved enough to warrant a less negative stance. Investors should note that the overall technical trend remains mildly bearish, and caution is advised.
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Investor Takeaway and Outlook
Carborundum Universal Ltd’s recent technical developments suggest a cautious but potentially stabilising scenario. The mild bullishness in weekly MACD and monthly OBV points to some accumulation and momentum building, yet the persistent bearish signals from KST, moving averages, and Bollinger Bands temper enthusiasm.
Investors should weigh the stock’s relative outperformance in the short term against its longer-term underperformance versus the Sensex. The upgrade in Mojo Grade from Strong Sell to Sell indicates that while the worst may be behind, the stock is not yet poised for a strong recovery.
Given the mixed technical signals and the company’s industrial sector exposure, market participants would be prudent to monitor upcoming quarterly results, sectoral trends, and broader economic indicators before committing to a significant position. The current price near ₹831.80 offers a moderate entry point but requires vigilance for confirmation of a sustained trend reversal.
Summary of Key Technical Metrics:
- Current Price: ₹831.80 (Day Change: +1.51%)
- 52-Week Range: ₹748.70 - ₹1,127.00
- MACD: Weekly Mildly Bullish, Monthly Bearish
- RSI: Neutral on Weekly and Monthly
- Bollinger Bands: Mildly Bearish (Weekly & Monthly)
- Moving Averages: Daily Mildly Bearish
- KST: Bearish (Weekly & Monthly)
- Dow Theory: No Trend Weekly, Mildly Bearish Monthly
- OBV: No Trend Weekly, Bullish Monthly
- Mojo Score: 34.0 (Sell, upgraded from Strong Sell)
In conclusion, Carborundum Universal Ltd is at a technical crossroads. While some indicators hint at a nascent recovery, the overall picture remains cautious. Investors should consider these mixed signals carefully and stay alert to further developments in price momentum and sector dynamics.
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