Chemplast Sanmar Ltd Technical Momentum Shifts Amid Bearish Sentiment

Current Market Performance and Price Action

Chemplast Sanmar’s stock closed at ₹257.90 on 2 Jan 2026, down 1.56% from the previous close of ₹262.00. The day’s trading range was relatively narrow, with a low of ₹255.50 and a high matching the previous close at ₹262.00. This price action underscores a cautious market sentiment, especially when juxtaposed with the stock’s 52-week high of ₹518.75 and a low of ₹245.35, indicating a significant depreciation of nearly 50% from its peak over the past year.

Comparatively, the benchmark Sensex has demonstrated resilience, delivering an 8.51% return over the last year, starkly contrasting Chemplast Sanmar’s 48.31% decline. This divergence highlights sector-specific headwinds and company-level challenges impacting investor confidence.

Technical Trend Analysis: A Mixed Picture

The technical trend for Chemplast Sanmar has shifted from a strongly bearish stance to a mildly bearish one, signalling a potential easing of downward pressure but no definitive reversal yet. This subtle change is reflected in several key technical indicators:

• MACD (Moving Average Convergence Divergence): The weekly MACD remains bearish, indicating that short-term momentum is still negative. However, the monthly MACD has turned mildly bullish, suggesting that longer-term momentum may be stabilising or beginning to improve.


• RSI (Relative Strength Index): On a weekly basis, the RSI is neutral with no clear signal, implying indecision among traders in the short term. Conversely, the monthly RSI is bullish, indicating that the stock is gaining strength over a longer horizon and may be emerging from oversold conditions.


• Bollinger Bands: Both weekly and monthly Bollinger Bands remain bearish, signalling that price volatility is skewed towards the downside and the stock is trading near the lower band, which often acts as a support level but also reflects persistent selling pressure.


• Moving Averages: Daily moving averages continue to be bearish, with the stock price trading below key averages such as the 50-day and 200-day moving averages. This suggests that short-term price momentum remains weak and the stock is yet to establish a sustainable uptrend.


• KST (Know Sure Thing): Both weekly and monthly KST indicators are bearish, reinforcing the view that momentum remains subdued across multiple timeframes.


• Dow Theory: Weekly Dow Theory signals are mildly bullish, hinting at a tentative shift in market sentiment, though the monthly outlook shows no clear trend, reflecting ongoing uncertainty.


• OBV (On-Balance Volume): Weekly OBV is mildly bullish, indicating that buying volume is slightly outweighing selling volume in the short term, but the monthly OBV shows no definitive trend, suggesting volume-based momentum is not yet firmly established.

Mojo Score and Ratings Update

MarketsMOJO has adjusted Chemplast Sanmar’s Mojo Grade from a 'Strong Sell' to a 'Sell' as of 1 Jan 2026, with a current Mojo Score of 31.0. This reflects a marginal improvement in the stock’s outlook but still signals caution for investors. The Market Cap Grade remains low at 3, indicating limited market capitalisation strength relative to peers.

The downgrade in rating aligns with the technical indicators that suggest the stock is struggling to regain upward momentum despite some mildly bullish signals on longer-term charts.

Long-Term Performance and Sector Context

Over the past three years, Chemplast Sanmar has underperformed significantly, delivering a negative return of 43.9%, while the Sensex has appreciated by 40.02%. This underperformance is indicative of structural challenges within the commodity chemicals sector and company-specific issues such as margin pressures and subdued demand.

Year-to-date, the stock has declined by 1.56%, slightly worse than the Sensex’s marginal 0.04% gain, reflecting continued investor caution. The one-month return of -9.51% further emphasises short-term weakness, contrasting with the Sensex’s modest 0.53% gain over the same period.

Technical Outlook and Investor Implications

The mixed signals from technical indicators suggest that while the stock remains under pressure, there are tentative signs of stabilisation on longer-term charts. The mildly bullish monthly MACD and RSI, coupled with weekly OBV improvements, hint at a potential base formation or a pause in the downtrend.

However, the persistence of bearish signals on daily moving averages, Bollinger Bands, and KST indicators caution against premature optimism. Investors should closely monitor whether the stock can break above key resistance levels and moving averages to confirm a sustained reversal.

Given the current Mojo Grade of 'Sell' and the technical backdrop, a cautious approach is warranted. Investors may consider waiting for clearer confirmation of trend reversal before increasing exposure, while those holding the stock should be mindful of downside risks.

Conclusion: Navigating a Challenging Technical Landscape

Chemplast Sanmar Ltd’s technical parameters reveal a stock caught between bearish momentum and emerging signs of mild bullishness on longer timeframes. The downgrade to a 'Sell' rating by MarketsMOJO reflects ongoing concerns, yet the monthly MACD and RSI improvements offer a glimmer of hope for a potential turnaround.

Investors should weigh these mixed signals carefully, considering the stock’s significant underperformance relative to the Sensex and the commodity chemicals sector’s cyclical challenges. A prudent strategy would involve monitoring key technical levels and volume trends for confirmation of a sustained recovery before committing additional capital.

In the meantime, the stock’s current valuation and technical profile suggest that it remains a speculative proposition, better suited for risk-tolerant investors with a long-term horizon.

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