Technical Trend Shift and Market Context
Deep Industries Ltd’s technical trend has deteriorated from mildly bearish to outright bearish, reflecting a growing negative sentiment among traders and investors. The stock closed at ₹440.00 on 31 Dec 2025, down 2.47% from the previous close of ₹451.15. This decline is more pronounced than the broader Sensex’s modest gains, highlighting sector-specific pressures.
The stock’s 52-week range stands between ₹386.00 and ₹624.50, indicating significant volatility over the past year. Despite a strong long-term performance with a 3-year return of 213.89%, the year-to-date (YTD) return is deeply negative at -19.77%, contrasting sharply with the Sensex’s 8.36% gain over the same period. This divergence underscores the stock’s recent struggles amid broader market strength.
MACD and Momentum Indicators Signal Bearishness
The Moving Average Convergence Divergence (MACD) indicator, a key momentum gauge, presents a bearish outlook on both weekly and monthly charts. The weekly MACD is firmly bearish, signalling that the short-term momentum is weakening relative to the longer-term trend. The monthly MACD, while mildly bearish, confirms that the stock’s momentum is under pressure over a more extended timeframe.
This bearish MACD alignment suggests that selling pressure is likely to persist unless a significant catalyst reverses the trend. The lack of bullish crossover points to subdued buying interest and potential continuation of downward price movement.
RSI and Bollinger Bands: Mixed Signals but Leaning Bearish
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, leaving room for further downside or sideways movement depending on market developments.
However, the Bollinger Bands provide a more decisive bearish signal. Both weekly and monthly Bollinger Bands are indicating bearishness, with the stock price trending towards the lower band. This suggests increased volatility and a potential continuation of the downward trend as prices test support levels.
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Moving Averages and KST Confirm Downtrend
Daily moving averages for Deep Industries Ltd are firmly bearish, with the stock trading below key averages such as the 50-day and 200-day moving averages. This technical positioning often signals sustained downward momentum and acts as resistance to price recovery.
The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, aligns with this bearish outlook. The weekly KST is bearish, while the monthly KST remains mildly bearish, reinforcing the view that momentum is weakening across multiple timeframes.
Contrasting Dow Theory and On-Balance Volume Signals
Interestingly, Dow Theory presents a mixed picture. On a weekly basis, it remains mildly bullish, suggesting some underlying strength or potential for short-term recovery. However, the monthly Dow Theory reading is mildly bearish, indicating that the longer-term trend remains under pressure.
On-Balance Volume (OBV), a volume-based indicator, shows mildly bullish signals on both weekly and monthly charts. This divergence between price momentum and volume suggests that while selling pressure dominates price action, accumulation by some investors may be occurring, possibly anticipating a future turnaround.
Valuation and Market Capitalisation Considerations
Deep Industries Ltd holds a Market Cap Grade of 3, reflecting a mid-tier market capitalisation within its sector. Despite this, the overall Mojo Score has declined to 37.0, resulting in a downgrade from Hold to Sell on 10 Nov 2025. This rating change signals a deteriorating outlook based on a combination of technical and fundamental factors.
The downgrade is significant as it reflects a shift in analyst sentiment, urging caution among investors. The stock’s recent underperformance relative to the Sensex and its own historical returns further supports this cautious stance.
Price Performance Relative to Sensex
Examining returns over various periods highlights the stock’s recent challenges. Over the past week, Deep Industries declined by 3.36%, compared to a 0.99% gain in the Sensex. The one-month return is similarly negative at -3.52%, versus Sensex’s 1.20% rise.
Year-to-date and one-year returns are deeply negative at -19.77% and -18.94% respectively, while the Sensex posted gains of 8.36% and 8.21% over the same periods. This stark contrast emphasises the stock’s underperformance amid a generally positive market environment.
Longer-term returns remain impressive, with a 3-year gain of 213.89% compared to Sensex’s 39.17%, indicating that the company has delivered substantial value over time despite recent setbacks.
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Investor Takeaway and Outlook
Deep Industries Ltd’s current technical profile suggests caution for investors. The convergence of bearish signals across MACD, moving averages, Bollinger Bands, and KST indicates that downward momentum is likely to persist in the near term. The absence of strong RSI signals and the mildly bullish OBV readings provide some nuance but are insufficient to offset the prevailing negative trend.
Given the downgrade to a Sell rating and the stock’s underperformance relative to the Sensex, investors should carefully assess their exposure to Deep Industries. The stock’s long-term growth story remains intact, but near-term risks are elevated amid a challenging oil sector environment and technical weakness.
Monitoring key support levels near the 52-week low of ₹386.00 will be critical. A sustained break below this level could trigger further declines, while any recovery above daily moving averages might signal a potential reversal. Until then, a cautious stance is warranted.
Summary of Technical Ratings
MarketsMOJO’s comprehensive technical assessment rates Deep Industries Ltd with a Mojo Score of 37.0 and a Sell grade, reflecting the deteriorated momentum and bearish outlook. The downgrade from Hold on 10 Nov 2025 underscores the shift in market sentiment and technical positioning.
Investors should weigh these technical signals alongside fundamental factors and sector dynamics before making investment decisions.
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