Key Events This Week
2 Feb: Stock opens at Rs.362.15, down 2.67% amid broader market weakness
3 Feb: Sharp recovery with 6.16% gain, Sensex rallies 2.63%
4 Feb: Intraday high of Rs.411.25 with 7.73% surge, outperforming sector and Sensex
5 Feb: Mixed technical signals despite 9.25% intraday jump to Rs.420.00
6 Feb: Reports very positive quarterly results; stock closes lower by 3.04%
2 February 2026: Weak Start Amid Market Sell-Off
Deep Industries Ltd began the week on a subdued note, closing at Rs.362.15, down 2.67% from the previous Friday’s close of Rs.372.10. This decline was sharper than the Sensex’s 1.03% drop to 35,814.09, reflecting sector-specific pressures and broader market weakness. The stock’s volume was moderate at 10,924 shares, indicating cautious investor sentiment amid a challenging macroeconomic backdrop.
3 February 2026: Strong Rebound with Market Rally
The stock rebounded sharply on 3 February, gaining 6.16% to close at Rs.384.45, outperforming the Sensex’s 2.63% rally to 36,755.96. Despite a slight dip in volume to 10,605 shares, the price recovery suggested renewed buying interest, possibly driven by anticipation of upcoming quarterly results and technical support near the Rs.360 level. This marked a significant turnaround from the previous day’s weakness.
4 February 2026: Intraday High and Outperformance Amid Mixed Market
On 4 February, Deep Industries Ltd surged intraday by 7.73%, reaching a high of Rs.411.25 before closing at Rs.418.25, an 8.79% gain on the day. This move outpaced the Sensex’s modest 0.37% rise to 36,890.21 and the Oil sector’s performance, highlighting strong short-term momentum. The stock’s volume nearly doubled to 18,901 shares, confirming robust demand. Technical indicators showed the price moving above short-term moving averages, signalling positive momentum despite remaining below longer-term resistance levels.
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5 February 2026: Mixed Technical Signals Despite Price Momentum
Despite a strong intraday surge to Rs.423.65, Deep Industries closed slightly lower at Rs.414.75, down 0.84% from the previous close. The stock recorded its highest volume of the week at 22,191 shares, reflecting heightened trading activity. Technical analysis revealed a complex picture: while the price momentum showed a 9.25% intraday jump, key indicators such as MACD and Bollinger Bands suggested a shift from bearish to mildly bearish trends. The Relative Strength Index (RSI) remained neutral, indicating no clear overbought or oversold conditions. This divergence pointed to a tentative technical stance amid sectoral headwinds.
6 February 2026: Very Positive Quarterly Results Amid Technical Downturn
Deep Industries reported its strongest quarterly financial performance for the December 2025 quarter, with net sales reaching ₹221.50 crores and PBDIT hitting a record ₹100.17 crores. Operating margins expanded to 45.22%, and PAT rose to ₹68.06 crores, translating to an EPS of ₹10.63. Return on Capital Employed (ROCE) improved to 13.88%, signalling enhanced capital efficiency. However, rising interest expenses (+51.05%) and reduced cash reserves (₹42.79 crores) raised cautionary flags.
Despite these robust fundamentals, the stock closed the day down 3.04% at Rs.402.15 on relatively low volume of 6,716 shares. Technical momentum deteriorated, with MACD and KST indicators turning bearish and the stock trading below key moving averages. The Mojo Score remained in the 'Sell' category at 43.0, reflecting cautious analyst sentiment amid mixed signals.
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Daily Price Comparison: Deep Industries Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.362.15 | -2.67% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.384.45 | +6.16% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.418.25 | +8.79% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.414.75 | -0.84% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.402.15 | -3.04% | 36,730.20 | +0.10% |
Key Takeaways
Positive Signals: The stock’s 8.08% weekly gain significantly outpaced the Sensex’s 1.51%, driven by strong intraday rallies on 4 and 5 February. Record quarterly financial results with robust revenue, profitability, and margin expansion underscore operational strength. Improved ROCE and EPS growth highlight enhanced capital efficiency and earnings capacity.
Cautionary Signals: Despite short-term price strength, technical indicators shifted from mildly bearish to bearish by week’s end, with MACD and KST oscillators signalling downward momentum. Rising interest expenses (+51.05%) and reduced cash reserves may pressure future profitability and liquidity. The Mojo Score remains at a cautious 'Sell' rating, reflecting mixed fundamentals and technical outlook.
Market Context: The stock’s volatility and mixed signals reflect sectoral headwinds in the oil industry, including commodity price fluctuations and regulatory uncertainties. While the three-year performance remains strong (+184.45%), recent underperformance over one-year and year-to-date periods relative to the Sensex suggests ongoing challenges.
Conclusion
Deep Industries Ltd demonstrated notable resilience this week, delivering an 8.08% gain and outperforming the Sensex by over 6.5%. The midweek surge to new intraday highs was supported by very positive quarterly results, signalling operational improvements and margin expansion. However, the technical landscape remains cautious, with bearish momentum indicators and rising financial costs tempering enthusiasm. Investors should weigh the company’s strong short-term earnings growth against the mixed technical signals and sectoral risks. Monitoring upcoming price action and financial disclosures will be critical to assessing whether the recent momentum can be sustained or if further consolidation lies ahead.
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