Concord Biotech Ltd Faces Bearish Momentum Amid Technical Downturn

Technical Trend Shift and Price Movement

Concord Biotech’s current price stands at ₹1,102.00, down 1.63% from the previous close of ₹1,120.25. The stock’s intraday range on 23 Feb 2026 spanned from ₹1,092.30 to ₹1,130.95, hovering near its 52-week low of ₹1,092.30 and significantly below its 52-week high of ₹2,149.90. This price action reflects a pronounced downward momentum, with the technical trend having deteriorated from mildly bearish to outright bearish.

The daily moving averages reinforce this negative bias, with the stock trading below key averages, signalling sustained selling pressure. The bearish stance is further corroborated by the weekly and monthly Bollinger Bands, both indicating a bearish configuration, suggesting that volatility is skewed towards downside risk.

MACD and Momentum Oscillators

The Moving Average Convergence Divergence (MACD) indicator on the weekly chart remains bearish, underscoring the prevailing negative momentum. While the monthly MACD does not currently provide a clear signal, the weekly bearishness suggests that short- to medium-term momentum is weakening. This is a critical observation for traders who rely on MACD crossovers to time entries and exits.

Meanwhile, the Relative Strength Index (RSI) on both weekly and monthly timeframes is neutral, offering no definitive overbought or oversold signals. This lack of RSI extremes implies that the stock is not yet in an oversold condition, leaving room for further downside before a potential technical rebound might occur.

Additional Technical Indicators

The Know Sure Thing (KST) indicator on the weekly chart also aligns with the bearish narrative, reinforcing the momentum shift. Dow Theory assessments on weekly and monthly scales remain mildly bearish, indicating that the broader trend has not yet reversed but is under pressure.

Interestingly, the On-Balance Volume (OBV) indicator presents a mildly bullish signal on the weekly chart and a bullish stance on the monthly chart. This divergence between price momentum and volume suggests that while selling pressure dominates price action, accumulation by institutional investors or selective buying may be occurring beneath the surface. However, this has not yet translated into a price recovery.

Comparative Performance and Market Context

Concord Biotech’s recent returns starkly contrast with the broader Sensex index. Over the past week, the stock declined by 6.87%, while the Sensex gained 0.23%. The one-month return for Concord Biotech is a negative 12.34%, compared to a 0.77% rise in the Sensex. Year-to-date, the stock has fallen 18.09%, significantly underperforming the Sensex’s 2.82% decline. Over the last year, the divergence is even more pronounced, with Concord Biotech down 34.54% against the Sensex’s 9.35% gain.

This underperformance highlights sector-specific or company-specific challenges that have weighed on investor sentiment. The Pharmaceuticals & Biotechnology sector, while generally resilient, has seen mixed fortunes, and Concord Biotech’s technical deterioration suggests it is currently on the weaker side of the spectrum.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Concord Biotech a Mojo Score of 34.0, categorising it with a Sell grade. This represents a downgrade from a previous Strong Sell rating on 17 Feb 2026, indicating a slight improvement but still reflecting a cautious stance. The Market Cap Grade stands at 3, signalling moderate market capitalisation relative to peers.

The downgrade in technical trend to bearish aligns with the Mojo Grade, reinforcing the view that the stock is facing headwinds. Investors should note that the current technical and fundamental signals do not favour aggressive buying, and risk management remains paramount.

Outlook and Investor Considerations

Given the prevailing bearish technical indicators, including the MACD, moving averages, and Bollinger Bands, Concord Biotech appears to be in a consolidation or downtrend phase. The absence of RSI extremes suggests that the stock has not yet reached a technical bottom, and further downside cannot be ruled out.

However, the mildly bullish OBV readings hint at some underlying buying interest, which could provide a foundation for a future recovery if accompanied by positive fundamental developments or sector tailwinds. Investors should monitor key support levels near ₹1,090 and watch for any bullish reversals in MACD or moving averages as potential entry signals.

In the context of the broader market, where the Sensex continues to show resilience, Concord Biotech’s relative weakness warrants caution. Portfolio managers may consider rebalancing or exploring alternative stocks within the Pharmaceuticals & Biotechnology sector that demonstrate stronger technical and fundamental profiles.

Summary

Concord Biotech Ltd is currently navigating a challenging technical landscape, with multiple indicators signalling bearish momentum and underperformance relative to the broader market. The downgrade in technical trend and Mojo Grade reflects this cautious outlook. While volume-based indicators suggest some accumulation, the absence of strong bullish signals advises prudence.

Investors should closely monitor technical developments, particularly MACD crossovers, moving average behaviour, and RSI levels, to identify potential inflection points. Until then, the stock remains a sell candidate within the Pharmaceuticals & Biotechnology sector, with better opportunities likely available elsewhere.

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