Key Events This Week
9 Feb: Intraday high with 9.03% surge to Rs.282.20
9 Feb: Quarterly results reveal sharp losses and negative financial trend
10 Feb: Intraday high with 7.6% surge to Rs.312.45
10 Feb: Mixed technical signals amid price momentum shift
12 Feb: Technical momentum shifts to sideways trend
13 Feb: Week closes at Rs.318.05, down 4.72% on day
9 February: Intraday Surge Amidst Quarterly Losses
Chemplast Sanmar Ltd began the week with a strong intraday rally on 9 February 2026, surging 9.03% to an intraday high of Rs.282.20. The stock opened with volatility, dipping to Rs.248.80 before rallying sharply, reflecting an intraday volatility of 5.68%. This gain significantly outpaced the Sensex’s modest 1.04% rise and the Commodity Chemicals sector’s 3.13% advance.
However, this bullish price action contrasted sharply with the company’s quarterly financial results released the same day, which revealed a deepening crisis. Net sales for the December 2025 quarter plunged to ₹835.14 crore, with a negative PBDIT of ₹-56.75 crore and a net loss of ₹119.20 crore, marking a 118.4% decline in profit after tax compared to the previous year. Earnings per share dropped to ₹-7.54, and operating margins contracted to -6.80%, signalling operational challenges.
The company’s debt-equity ratio rose to 0.97 times, and cash reserves fell to ₹569.39 crore, raising liquidity concerns. Despite these fundamentals, the stock showed resilience, closing the day at Rs.282.80, up 9.87%, indicating active repositioning by investors amid mixed signals.
10 February: Continued Price Momentum and Mixed Technical Signals
On 10 February, Chemplast Sanmar Ltd extended its rally, hitting an intraday high of Rs.312.45 with a 7.6% gain from the previous close. The stock outperformed the Sensex’s 0.25% rise and the sector’s gains, registering an intraday volatility of 6.86%. This marked a two-day cumulative gain of over 20%, underscoring strong short-term momentum.
Technical analysis on this day revealed a complex picture. The stock traded above its 5-day, 20-day, and 50-day moving averages, signalling short- to medium-term strength, yet remained below longer-term averages, indicating resistance. The MACD indicator showed mild bullishness on weekly and monthly charts, while RSI readings were neutral to bullish on monthly timeframes but neutral weekly. Bollinger Bands and KST oscillators suggested mild bearishness, reflecting ongoing uncertainty.
Volume-based indicators such as On-Balance Volume (OBV) showed no clear trend, adding to the cautious outlook. Despite the positive price action, MarketsMOJO maintained a Strong Sell mojo grade with a score of 23.0, reflecting fundamental concerns.
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11 February: Modest Gains Amid Consolidation
The stock continued its upward trajectory on 11 February, closing at Rs.317.50, up 2.35%. Trading volume was relatively low at 7,308 shares, suggesting a consolidation phase following the prior days’ sharp rallies. The Sensex rose marginally by 0.13%, indicating a broadly stable market environment.
Chemplast Sanmar’s price remained above key short-term moving averages, maintaining positive momentum, though the lack of volume strength hinted at cautious investor sentiment amid ongoing fundamental concerns.
12 February: Technical Momentum Shifts to Sideways Amid Mixed Signals
On 12 February, the stock surged 5.13% to close at Rs.333.80, reaching the week’s highest close. This gain came despite the Sensex declining 0.56%, highlighting the stock’s outperformance. The trading volume increased to 35,583 shares, reflecting renewed investor interest.
Technical indicators showed a shift from mildly bearish to sideways momentum. Weekly and monthly MACD readings remained mildly bullish, while RSI hovered in neutral zones. Bollinger Bands on the weekly chart turned bullish, with the stock approaching the upper band, signalling potential upward pressure. However, monthly Bollinger Bands and KST oscillators remained bearish, underscoring longer-term caution.
On-Balance Volume (OBV) readings were bullish, suggesting accumulation despite mixed price action. The Mojo Score deteriorated to 28.0 with a Strong Sell grade, reflecting persistent fundamental weaknesses despite technical improvements.
13 February: Profit Taking Leads to Pullback
The week concluded with a 4.72% decline to Rs.318.05 on 13 February, on relatively low volume of 5,950 shares. The Sensex fell 1.40%, indicating a broadly negative market sentiment. This pullback followed the prior day’s strong gains and may reflect profit-taking amid ongoing uncertainty.
Despite the decline, the stock closed well above the week’s opening price, maintaining a strong weekly gain of 23.56%. The technical momentum remains mixed, with short-term indicators suggesting potential for further volatility.
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| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.282.80 | +9.87% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.310.20 | +9.69% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.317.50 | +2.35% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.333.80 | +5.13% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.318.05 | -4.72% | 36,532.48 | -1.40% |
Key Takeaways
Chemplast Sanmar Ltd’s week was characterised by a strong price rally of 23.56%, vastly outperforming the Sensex’s 0.54% decline. The stock’s intraday highs on 9 and 10 February reflected heightened volatility and active trading interest despite the company’s deteriorating quarterly financials, which showed mounting losses and margin contraction.
Technical indicators presented a mixed picture, with short-term momentum improving as evidenced by gains above key moving averages and mildly bullish MACD readings. However, longer-term trends and volume-based indicators remained cautious, reflecting persistent fundamental challenges and a Strong Sell mojo grade.
The stock’s sharp gains amid weak fundamentals suggest speculative trading and repositioning rather than a fundamental turnaround. The sideways technical momentum shift on 12 February and the pullback on 13 February highlight ongoing uncertainty and the potential for volatility in the near term.
Investors should note the company’s elevated leverage, shrinking cash reserves, and negative operating margins as cautionary signals. The divergence between short-term price strength and longer-term financial weakness underscores the need for careful monitoring of upcoming quarterly results and technical confirmations.
Conclusion
Chemplast Sanmar Ltd’s week was marked by significant price volatility and a strong rally that defied the company’s deteriorating financial fundamentals. While short-term technical momentum improved, the stock remains burdened by losses, margin pressures, and liquidity concerns. The mixed technical signals and cautious mojo rating suggest that the recent gains may be driven more by market sentiment and trading dynamics than by fundamental recovery.
As the stock closed the week at Rs.318.05, investors face a complex outlook with potential for further volatility. Monitoring technical breakouts above resistance levels and fundamental improvements in upcoming quarters will be critical to assessing the sustainability of this rally. Until then, a cautious stance remains prudent given the company’s challenging financial position and mixed market signals.
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