Technical Trend Overview
Recent analysis reveals that Deccan Cements’ technical trend has deteriorated from mildly bearish to outright bearish. The daily moving averages are firmly bearish, reflecting downward pressure on the stock price, which closed at ₹700.65 on 13 Feb 2026, down 2.50% from the previous close of ₹718.60. The stock’s intraday range was between ₹671.20 and ₹719.15, indicating heightened volatility within the session.
The weekly MACD remains bearish, reinforcing the negative momentum, while the monthly MACD is mildly bearish, suggesting that longer-term momentum is weakening but not yet decisively negative. The weekly RSI, however, shows a bullish signal, indicating some short-term buying interest or oversold conditions that could provide temporary support. Conversely, the monthly RSI offers no clear signal, reflecting indecision in the broader timeframe.
Moving Averages and Momentum Indicators
Daily moving averages have turned bearish, with the stock trading below key averages, signalling a downtrend. The Bollinger Bands on both weekly and monthly charts are mildly bearish, suggesting the stock price is trending towards the lower band, which often indicates increased selling pressure. The KST (Know Sure Thing) indicator aligns with this view, showing bearish momentum on the weekly scale and mildly bearish on the monthly scale.
On balance, the On-Balance Volume (OBV) indicator is mildly bearish on the weekly chart and shows no clear trend monthly, implying that volume does not strongly support a reversal at this stage. The Dow Theory readings present a mixed picture, mildly bullish weekly but mildly bearish monthly, underscoring the conflicting signals across different time horizons.
Price Performance Relative to Sensex
Examining Deccan Cements’ returns relative to the Sensex provides additional context. Over the past week, the stock outperformed the Sensex with a 4.33% gain compared to the benchmark’s 0.43%. However, this short-term strength contrasts with the year-to-date (YTD) performance, where the stock has declined by 5.90%, underperforming the Sensex’s 1.81% loss. Over the one-year horizon, Deccan Cements returned 7.59%, lagging behind the Sensex’s 9.85% gain.
Longer-term returns remain robust, with a three-year gain of 49.52% surpassing the Sensex’s 37.89%, and a five-year return of 74.79% also outpacing the benchmark’s 62.34%. However, the ten-year return of 170.00% trails the Sensex’s 264.02%, indicating that while the company has delivered solid growth, it has not matched the broader market’s performance over the decade.
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Mojo Score and Ratings Update
Deccan Cements currently holds a Mojo Score of 28.0, categorised as a Strong Sell, an upgrade in severity from its previous Sell rating as of 22 Dec 2025. This downgrade reflects the deteriorating technical and fundamental outlook. The Market Cap Grade stands at 4, indicating a mid-tier market capitalisation relative to peers in the Cement & Cement Products sector.
The downgrade to Strong Sell is consistent with the bearish technical indicators and the recent price decline. Investors should note that the stock’s 52-week high of ₹1,183.95 is significantly above the current price, while the 52-week low of ₹575.00 suggests a wide trading range and potential downside risk if bearish momentum persists.
Sector and Industry Context
Within the Cement & Cement Products sector, Deccan Cements faces competitive pressures and cyclical demand fluctuations. The sector has seen mixed technical signals, but Deccan’s technical deterioration is more pronounced. The stock’s relative underperformance YTD and the bearish technical trend suggest caution compared to sector peers that may be showing more stable or bullish patterns.
Investors should weigh these technical signals alongside broader macroeconomic factors affecting cement demand, such as infrastructure spending, real estate activity, and commodity price volatility.
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Investor Takeaway and Outlook
Deccan Cements’ technical indicators collectively point to a bearish momentum shift, with daily moving averages and MACD signalling sustained downward pressure. The weekly RSI’s bullish signal may offer short-term relief, but it is insufficient to offset the broader negative trend. The stock’s recent price action, including a 2.50% decline on 13 Feb 2026, underscores the challenges ahead.
Long-term investors should consider the stock’s relative underperformance YTD and the downgrade to a Strong Sell rating. While the company has delivered strong returns over three and five years, the current technical environment suggests caution. Monitoring key support levels near the 52-week low of ₹575.00 will be critical, as a breach could accelerate selling pressure.
Given the mixed signals from monthly indicators and the sector’s cyclical nature, investors may prefer to wait for clearer confirmation of trend reversal or improvement in technical parameters before increasing exposure.
Summary
In summary, Deccan Cements Ltd. is navigating a challenging technical landscape marked by a shift from mildly bearish to bearish momentum. The combination of bearish MACD, moving averages, and Bollinger Bands, alongside a Strong Sell Mojo Grade, suggests that investors should exercise caution. Short-term bullish RSI signals offer limited respite amid broader negative trends. Comparative performance against the Sensex and sector peers further emphasises the need for careful stock selection within the cement industry.
Investors are advised to closely monitor technical developments and consider peer comparisons to identify potentially superior investment opportunities within the sector and broader market.
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