Technical Trend Shift and Price Movement
Deep Industries Ltd, operating within the oil sector, has seen its technical trend deteriorate from mildly bearish to outright bearish. The stock closed at ₹433.00 on 6 Jan 2026, down 4.67% from the previous close of ₹454.20. Intraday trading saw a high of ₹457.40 and a low of ₹431.00, indicating increased volatility. The current price remains significantly below its 52-week high of ₹624.50, while still above the 52-week low of ₹386.00.
This downward momentum is underscored by the daily moving averages, which have turned bearish, signalling sustained selling pressure. The stock’s recent price action contrasts with the broader market, as the Sensex posted a modest gain of 0.88% over the past week, while Deep Industries declined by 4.02% in the same period.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a bearish stance on both weekly and monthly charts. The weekly MACD remains firmly bearish, reflecting negative momentum in the short term, while the monthly MACD is mildly bearish, suggesting that longer-term momentum is also weakening but with less intensity.
The lack of a clear signal from the Relative Strength Index (RSI) on both weekly and monthly timeframes indicates that the stock is neither oversold nor overbought, but the absence of bullish RSI signals fails to provide any immediate relief from the prevailing downtrend.
Bollinger Bands and Volatility
Bollinger Bands on weekly and monthly charts are both bearish, signalling that the stock price is trading near the lower band, which often indicates increased selling pressure and potential continuation of the downtrend. This technical setup suggests that volatility remains elevated and downside risks persist.
Additional Technical Signals
The Know Sure Thing (KST) indicator aligns with the bearish narrative, showing bearish momentum on the weekly chart and mildly bearish conditions on the monthly chart. Meanwhile, the Dow Theory and On-Balance Volume (OBV) indicators show no definitive trend or volume confirmation, which adds uncertainty but does not contradict the bearish signals from other indicators.
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Comparative Performance and Market Context
Deep Industries’ recent performance has lagged behind the broader market benchmarks. Year-to-date, the stock has declined by 5.93%, while the Sensex has gained 0.26%. Over the past year, the stock has suffered a steep 26.64% loss, contrasting sharply with the Sensex’s 7.85% gain. However, the company’s longer-term returns remain impressive, with a three-year return of 201.27% compared to the Sensex’s 41.57%, highlighting past strong performance despite recent weakness.
Market capitalisation metrics also reflect challenges, with Deep Industries assigned a Market Cap Grade of 3, indicating a mid-tier valuation relative to peers. The overall Mojo Score of 37.0 and a Mojo Grade downgraded from Hold to Sell on 10 Nov 2025 further reinforce the cautious stance among analysts.
Sectoral and Industry Considerations
Operating within the oil industry, Deep Industries is subject to sector-specific headwinds including fluctuating crude prices, regulatory changes, and global demand uncertainties. The bearish technical signals may be exacerbated by these external factors, which continue to weigh on investor sentiment.
Outlook and Investor Implications
Given the confluence of bearish technical indicators and the recent downgrade in rating, investors should approach Deep Industries with caution. The absence of strong RSI signals suggests limited immediate oversold conditions, implying that further downside cannot be ruled out. The bearish MACD and moving averages point to sustained negative momentum in the near term.
Investors may consider monitoring key support levels near the 52-week low of ₹386.00, while also keeping an eye on any reversal signals from momentum indicators. Given the stock’s underperformance relative to the Sensex and the oil sector, portfolio diversification and risk management remain prudent strategies.
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Summary
Deep Industries Ltd’s technical landscape has shifted decisively towards bearishness, with multiple indicators confirming weakening momentum and increased selling pressure. The downgrade from Hold to Sell by MarketsMOJO on 10 Nov 2025 reflects this deterioration, supported by a Mojo Score of 37.0. While the stock’s long-term returns remain strong, recent price action and technical signals counsel caution for investors.
In the context of a volatile oil sector and broader market uncertainties, Deep Industries faces significant headwinds. Investors should weigh these factors carefully and consider alternative opportunities within the sector or beyond, as highlighted by comparative screening tools.
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