Chemplast Sanmar Ltd Technical Momentum Shifts Amid Bearish Outlook

Price Movement and Market Context

Chemplast Sanmar’s current market price stands at ₹259.00, down 2.63% from the previous close of ₹266.00. The stock traded within a range of ₹257.00 to ₹268.95 today, remaining close to its 52-week low of ₹245.35, and significantly below its 52-week high of ₹518.75. This wide gap highlights the stock’s prolonged downtrend over the past year.

Comparatively, the stock’s returns have lagged the broader market benchmarks considerably. Over the past year, Chemplast Sanmar has delivered a negative return of -47.7%, while the Sensex has gained 7.85%. The three-year performance gap is similarly stark, with the stock down 44.5% against the Sensex’s 41.6% rise. These figures underscore the stock’s underperformance within the commodity chemicals sector and the wider market.

Technical Trend Shift: From Mildly Bearish to Bearish

The technical trend for Chemplast Sanmar has recently shifted from mildly bearish to outright bearish, signalling increased downside risk. This change is reflected across multiple timeframes and indicators, painting a cautious picture for investors.

On the daily chart, moving averages have turned bearish, with the stock price trading below key averages, indicating downward momentum. The weekly Moving Average Convergence Divergence (MACD) remains bearish, confirming short-term selling pressure. However, the monthly MACD shows a mildly bullish stance, suggesting some underlying long-term support, though this is insufficient to offset the prevailing weakness.

RSI and Momentum Indicators

The Relative Strength Index (RSI) presents a mixed picture. On the weekly timeframe, the RSI is neutral, offering no clear signal of overbought or oversold conditions. Conversely, the monthly RSI is bullish, indicating some longer-term buying interest. This divergence suggests that while short-term momentum is weak, there may be pockets of accumulation at lower levels.

Other momentum indicators such as the Know Sure Thing (KST) oscillator are bearish on both weekly and monthly charts, reinforcing the downward trend. The Bollinger Bands also signal bearishness on both weekly and monthly timeframes, with the stock price hugging the lower band, a classic sign of sustained selling pressure.

Volume and Trend Confirmation

Volume-based indicators like On-Balance Volume (OBV) show no definitive trend on weekly or monthly charts, indicating a lack of strong conviction among buyers or sellers. Similarly, Dow Theory analysis reveals no clear trend on either timeframe, reflecting market indecision and the absence of a confirmed directional move.

These neutral volume and trend signals suggest that while price momentum is bearish, the selling pressure may not be accompanied by heavy volume, which could limit the extent of the decline or signal a potential base formation in the near term.

Mojo Score and Ratings Update

MarketsMOJO has downgraded Chemplast Sanmar’s Mojo Grade from Strong Sell to Sell as of 01 Jan 2026, reflecting the deteriorating technical and fundamental outlook. The current Mojo Score stands at 31.0, indicating weak momentum and poor market sentiment. The Market Cap Grade is rated 3, signalling a mid-tier market capitalisation within its sector.

This downgrade aligns with the technical indicators and price action, suggesting investors should exercise caution. The stock’s persistent underperformance relative to the Sensex and sector peers further supports a cautious stance.

Sector and Industry Context

Chemplast Sanmar operates within the commodity chemicals industry, a sector often sensitive to global raw material prices, regulatory changes, and demand fluctuations. The current bearish technical signals may also reflect broader sectoral headwinds, including subdued demand and pricing pressures.

Investors should monitor sector trends closely, as any recovery in commodity prices or improvement in industry fundamentals could provide a catalyst for a technical rebound. Until then, the stock’s technical profile remains weak.

Investor Takeaway and Outlook

In summary, Chemplast Sanmar Ltd’s technical parameters have shifted decisively towards a bearish stance, with daily moving averages, weekly MACD, KST, and Bollinger Bands all signalling downside momentum. The stock’s proximity to its 52-week low and significant underperformance relative to the Sensex and sector peers reinforce the cautious outlook.

While monthly indicators such as the MACD and RSI offer some mild bullish hints, these are insufficient to counterbalance the dominant bearish signals. Volume and trend confirmation tools remain inconclusive, suggesting that the stock may be in a consolidation phase but with a downward bias.

Investors should remain vigilant and consider the broader commodity chemicals sector dynamics before committing fresh capital. For those holding the stock, risk management strategies such as stop-loss orders or partial profit-taking may be prudent given the current technical environment.

Longer-term investors might await clearer signs of trend reversal, such as a sustained break above key moving averages or a confirmed bullish crossover in momentum indicators, before increasing exposure.

Summary of Key Technical Indicators:

• Daily Moving Averages: Bearish


• Weekly MACD: Bearish


• Monthly MACD: Mildly Bullish


• Weekly RSI: Neutral


• Monthly RSI: Bullish


• Weekly & Monthly Bollinger Bands: Bearish


• Weekly & Monthly KST: Bearish


• Dow Theory (Weekly & Monthly): No Trend


• OBV (Weekly & Monthly): No Trend

Price and Returns Snapshot:

• Current Price: ₹259.00


• Previous Close: ₹266.00


• 52-Week High: ₹518.75


• 52-Week Low: ₹245.35


• 1 Week Return: +1.37% vs Sensex +0.88%


• 1 Month Return: -1.11% vs Sensex -0.32%


• Year-to-Date Return: -1.15% vs Sensex +0.26%


• 1 Year Return: -47.71% vs Sensex +7.85%


• 3 Year Return: -44.48% vs Sensex +41.57%

Conclusion

Chemplast Sanmar Ltd’s technical deterioration and weak price momentum warrant a cautious approach. The downgrade to a Sell rating by MarketsMOJO reflects these challenges. Investors should weigh the risks carefully and consider alternative opportunities within the commodity chemicals sector or broader market that demonstrate stronger technical and fundamental profiles.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →