Coromandel International Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview and Price Movement

As of 5 Feb 2026, Coromandel International’s share price closed at ₹2,270.00, down 0.99% from the previous close of ₹2,292.80. The intraday range saw a high of ₹2,292.05 and a low of ₹2,222.00, indicating some volatility within the session. The stock remains comfortably above its 52-week low of ₹1,590.00 but still trails its 52-week high of ₹2,720.00 by approximately 16.5%, signalling room for recovery if momentum improves.

The technical trend has shifted from mildly bullish to mildly bearish, reflecting a cautious stance among traders and investors. This shift is corroborated by the daily moving averages, which currently present a bearish signal, suggesting that short-term price momentum is weakening. The moving averages’ bearish alignment typically indicates that the stock may face resistance in sustaining upward price movements in the near term.

MACD and RSI: Divergent Signals

The Moving Average Convergence Divergence (MACD) indicator, a widely used momentum oscillator, shows mildly bearish signals on both weekly and monthly charts. This suggests that the stock’s upward momentum is losing steam, with the MACD line likely crossing below the signal line or remaining below it, a classic bearish indication. However, the Relative Strength Index (RSI) on both weekly and monthly timeframes remains neutral, providing no clear overbought or oversold signals. This lack of RSI extremes implies that while momentum is softening, the stock is not yet in a critical zone that would typically trigger a strong reversal or buying opportunity.

Bollinger Bands and KST: Mixed Momentum Indicators

Bollinger Bands, which measure volatility and potential price breakouts, show a sideways trend on the weekly chart but a mildly bullish stance on the monthly chart. This divergence suggests that while short-term price movements are consolidating, the longer-term outlook retains some positive bias. Meanwhile, the Know Sure Thing (KST) indicator presents a bullish signal on the weekly timeframe but a mildly bearish one monthly, further highlighting the conflicting momentum signals across different time horizons.

Volume and Dow Theory Insights

On-Balance Volume (OBV), a volume-based indicator used to confirm price trends, shows no clear trend on either weekly or monthly charts. This absence of volume confirmation may indicate that recent price movements lack strong conviction from market participants. Dow Theory assessments add another layer of complexity, with a mildly bullish weekly outlook but no discernible trend monthly, reinforcing the notion of short-term optimism tempered by longer-term uncertainty.

Comparative Returns and Market Context

Coromandel International’s performance relative to the broader market, represented by the Sensex, reveals a mixed but generally favourable long-term trend. Over the past week, the stock returned 0.59%, underperforming the Sensex’s 1.79% gain. However, over one month, the stock’s decline of 0.46% was less severe than the Sensex’s 2.27% drop, indicating relative resilience amid broader market weakness.

Year-to-date, Coromandel’s return stands at -0.15%, outperforming the Sensex’s -1.65%. More impressively, the stock has delivered a 21.00% return over the past year, significantly outpacing the Sensex’s 6.66%. Over three and five years, the stock’s cumulative returns of 159.58% and 195.52%, respectively, dwarf the Sensex’s 37.76% and 65.60%, underscoring Coromandel’s strong growth trajectory within the fertilisers sector. The ten-year return of 1,263.77% compared to the Sensex’s 244.38% further cements its status as a long-term outperformer.

Mojo Score and Rating Revision

MarketsMOJO’s proprietary Mojo Score for Coromandel International currently stands at 50.0, reflecting a Hold rating. This represents a downgrade from the previous Buy rating issued on 19 Jan 2026. The downgrade aligns with the recent technical trend shift and the mixed signals from momentum indicators, signalling a more cautious stance for investors. The Market Cap Grade remains low at 2, indicating limited market capitalisation strength relative to peers.

Implications for Investors

The technical indicators suggest that Coromandel International is at a crossroads. The bearish signals from moving averages and MACD caution against aggressive buying in the short term, while neutral RSI and sideways Bollinger Bands imply that the stock is not yet oversold. Investors should monitor for confirmation of trend direction, particularly watching for a sustained break below key moving averages or a MACD crossover to the downside, which could signal further weakness.

Conversely, the stock’s strong long-term returns and relative outperformance versus the Sensex provide a compelling backdrop for investors with a longer horizon. The mildly bullish monthly Bollinger Bands and weekly KST suggest that any pullbacks could present buying opportunities if accompanied by improving volume and momentum.

Sector and Industry Considerations

Operating within the fertilisers industry, Coromandel International is subject to sector-specific dynamics such as commodity price fluctuations, government policies on subsidies, and agricultural demand cycles. The current technical signals may also reflect broader sector volatility, which has been evident in recent months due to global supply chain disruptions and changing input costs.

Investors should weigh these external factors alongside technical indicators when assessing Coromandel’s outlook. The stock’s ability to maintain its long-term growth trajectory will depend on both operational execution and favourable sector conditions.

Conclusion

Coromandel International Ltd’s recent technical momentum shift from mildly bullish to mildly bearish highlights a period of consolidation and uncertainty. Mixed signals from MACD, RSI, moving averages, and other indicators suggest that while short-term caution is warranted, the stock’s strong historical performance and sector positioning offer potential for recovery. Investors are advised to monitor key technical levels and volume trends closely, balancing short-term risks with long-term growth prospects.

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