Key Events This Week
Jan 19: Formation of Golden Cross signalling potential bullish breakout
Jan 20: Upgrade to Buy rating on strong fundamentals and improved technicals
Jan 20: Technical momentum shifts to mildly bullish outlook
Jan 23: Week closes at Rs.2,246.50 (-0.31% on the day)
Monday, 19 January: Golden Cross Formation Signals Potential Bullish Breakout
Coromandel International Ltd opened the week at Rs.2,271.80, down 2.17% from the previous close, underperforming the Sensex which declined 0.49%. Despite this initial weakness, the company announced the formation of a Golden Cross, a key technical indicator where the 50-day moving average crossed above the 200-day moving average. This event is widely regarded as a bullish signal, suggesting a potential shift in long-term momentum for the stock.
The Golden Cross indicated renewed investor confidence and a possible reversal from recent short-term volatility. However, the stock’s decline on the day highlighted that the market was still digesting this development amid broader sector pressures. The Sensex’s larger fall of 0.49% contrasted with the stock’s sharper 2.17% drop, reflecting some near-term caution among investors.
Tuesday, 20 January: Upgrade to Buy on Strong Fundamentals and Improved Technicals
On 20 January, Coromandel International’s stock price was largely flat at Rs.2,272.30, gaining a marginal 0.02% despite the Sensex plunging 1.82%. This relative resilience coincided with a significant upgrade by MarketsMOJO, which raised the company’s rating from Hold to Buy. The upgrade was based on a comprehensive assessment of the company’s quality, valuation, financial trends, and technical indicators.
Fundamentally, Coromandel boasts a strong Return on Equity of 20.41%, a low Debt to Equity ratio of 0.03, and a compound annual growth rate in net sales of 15.42%. The company’s market capitalisation stands at ₹66,816 crore, making it the largest in the fertilisers sector by this measure. Despite a premium Price to Book ratio of 5.5, the upgrade reflected confidence in the company’s consistent earnings growth and record quarterly performance, including net sales of ₹9,654.13 crores and PBDIT of ₹1,146.52 crores in the latest quarter.
Technically, the upgrade was supported by a shift in momentum indicators, with daily moving averages turning mildly bullish and the weekly KST indicator signalling positive momentum. However, some indicators such as the MACD remained mildly bearish, suggesting cautious optimism.
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Wednesday, 21 January: Price Declines Amid Mixed Technical Signals
The stock declined 0.53% to Rs.2,260.20 on 21 January, underperforming the Sensex which fell 0.47%. This drop followed the previous day’s upgrade and reflected some consolidation after the recent technical developments. Volume was notably lower at 16,864 shares, indicating reduced trading interest.
Technical indicators remained mixed, with the MACD still mildly bearish on weekly and monthly charts, while the RSI showed no clear signal. Bollinger Bands suggested sideways movement on the weekly timeframe, indicating limited volatility. This consolidation phase suggested that while momentum was improving, confirmation of a sustained uptrend was still pending.
Thursday, 22 January: Mild Recovery on Positive Market Sentiment
On 22 January, Coromandel International rebounded by 0.82% to Rs.2,278.70, outperforming the Sensex which gained 0.76%. This recovery aligned with the positive technical momentum shift and the earlier upgrade, as investors appeared to respond favourably to the company’s fundamentals and sector leadership.
Volume surged to 73,327 shares, supporting the price rise and indicating renewed buying interest. The daily moving averages remained mildly bullish, and the weekly KST indicator continued to signal positive momentum. This day’s performance reinforced the potential for a bullish breakout, consistent with the Golden Cross formation earlier in the week.
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Friday, 23 January: Week Ends with a Decline Amid Broader Market Weakness
The week concluded with Coromandel International falling 1.41% to Rs.2,246.50, slightly outperforming the Sensex which dropped 1.33%. The volume was very low at 2,609 shares, suggesting limited trading activity on the final day. The decline reflected broader market weakness and some profit-taking after the midweek gains.
Despite the drop, the stock’s weekly performance was marginally better than the Sensex, which fell 3.31% compared to the stock’s 3.26% decline from the previous Friday’s close of Rs.2,322.10. This relative outperformance underscores the stock’s resilience amid volatile market conditions.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-19 | Rs.2,271.80 | -2.17% | 36,650.97 | -0.49% |
| 2026-01-20 | Rs.2,272.30 | +0.02% | 35,984.65 | -1.82% |
| 2026-01-21 | Rs.2,260.20 | -0.53% | 35,815.26 | -0.47% |
| 2026-01-22 | Rs.2,278.70 | +0.82% | 36,088.66 | +0.76% |
| 2026-01-23 | Rs.2,246.50 | -1.41% | 35,609.90 | -1.33% |
Key Takeaways
Positive Signals: The formation of the Golden Cross on 19 January marked a significant technical milestone, signalling a potential bullish breakout and a shift in long-term momentum. The upgrade to a Buy rating by MarketsMOJO on 20 January reflected strong fundamentals, including a high Return on Equity of 20.41%, low leverage, and consistent earnings growth. The shift in technical momentum to mildly bullish, supported by daily moving averages and the weekly KST indicator, further reinforced a constructive outlook.
Cautionary Notes: Despite these positives, the stock experienced short-term volatility with declines on multiple days, including a 2.17% drop on Monday and a 1.41% fall on Friday. Some technical indicators such as the MACD remained mildly bearish, and the low trading volume on the final day suggested limited conviction. The premium valuation metrics, including a Price to Book ratio of 5.5, imply elevated expectations that could lead to increased volatility if growth targets are not met.
Conclusion
Coromandel International Ltd’s week was characterised by a blend of technical optimism and short-term price fluctuations. The Golden Cross formation and upgrade to a Buy rating underscore the company’s strong fundamentals and improving technical outlook. While the stock closed the week slightly down, it marginally outperformed the Sensex, demonstrating resilience amid broader market weakness.
Investors should monitor upcoming price action and volume trends to confirm the sustainability of the bullish signals. The mixed technical indicators suggest that while the stock may be poised for an upward move, cautious risk management remains prudent given the current market environment and valuation levels.
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