Deep Industries Ltd Sees Mixed Technical Signals Amid Price Momentum Shift

Price Momentum and Recent Market Performance

On 5 February 2026, Deep Industries Ltd closed at ₹420.00, marking a significant 9.25% increase from the previous close of ₹384.45. The stock traded within a range of ₹389.00 to ₹423.65 during the session, demonstrating heightened volatility. However, this rally comes against a backdrop of mixed returns over various time horizons. While the stock outperformed the Sensex over the past week with a 13.68% gain compared to the benchmark’s 1.79%, it has underperformed over longer periods, including a 7.53% decline over the past month and a 22.5% drop over the last year. Notably, Deep Industries has delivered a robust 187.77% return over three years, significantly outpacing the Sensex’s 37.76% gain, underscoring its long-term growth potential despite recent headwinds.

Technical Trend Shift: From Bearish to Mildly Bearish

The technical trend for Deep Industries has shifted from a clear bearish stance to a more tempered mildly bearish position. This subtle change reflects a market attempting to stabilise after a period of downward pressure. The weekly technical trend remains bearish, but the monthly trend has softened to mildly bearish, indicating potential for consolidation or a gradual recovery if positive momentum sustains.

MACD Analysis

The Moving Average Convergence Divergence (MACD) indicator continues to signal caution. On a weekly basis, the MACD remains bearish, suggesting that downward momentum still dominates in the short term. The monthly MACD, however, has improved to mildly bearish, hinting at a possible easing of selling pressure. This divergence between weekly and monthly MACD readings suggests that while short-term traders may remain cautious, longer-term investors could anticipate a stabilisation phase.

RSI and Momentum Indicators

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This absence of an overbought or oversold condition implies that the stock is neither excessively pressured to the upside nor the downside, reinforcing the notion of a sideways or consolidative phase. Complementing this, the KST (Know Sure Thing) indicator remains bearish on a weekly basis but has softened to mildly bearish monthly, aligning with the MACD’s mixed signals.

Moving Averages and Bollinger Bands

Daily moving averages for Deep Industries are mildly bearish, indicating that the short-term price action is still under some selling pressure. The stock price remains below key moving averages, which often act as resistance levels. Bollinger Bands on the weekly chart also reflect a mildly bearish stance, with the price testing the upper band but failing to decisively break out. On the monthly scale, Bollinger Bands suggest a sideways trend, reinforcing the idea of consolidation rather than a clear directional move.

Volume and Dow Theory Insights

On-Balance Volume (OBV) analysis shows mildly bearish signals on a weekly basis, indicating that volume trends are not strongly supporting the recent price gains. The monthly OBV remains neutral, suggesting a lack of conviction among investors. Dow Theory assessments align with these findings, with the weekly trend mildly bearish and the monthly trend showing no clear direction. This combination points to a market in flux, where neither bulls nor bears have established dominance.

Mojo Score and Market Capitalisation Grade

Deep Industries currently holds a Mojo Score of 42.0, categorised as a Sell rating, a downgrade from its previous Hold grade as of 10 November 2025. This reflects a cautious stance from MarketsMOJO analysts, who have noted deteriorating technical and fundamental factors. The company’s market capitalisation grade stands at 3, indicating a mid-tier valuation relative to its peers in the oil sector. Investors should weigh this against the stock’s recent price volatility and mixed technical signals.

Comparative Performance Against Sensex

While Deep Industries has outperformed the Sensex over the short term, its longer-term returns have lagged behind the benchmark. The stock’s 1-year return of -22.5% contrasts sharply with the Sensex’s 6.66% gain, highlighting sector-specific challenges and company-specific headwinds. However, the impressive 3-year return of 187.77% versus the Sensex’s 37.76% suggests that patient investors who can navigate the current volatility may be rewarded over time.

Outlook and Investor Considerations

Given the current technical landscape, Deep Industries appears to be at a crossroads. The recent price surge and weekly outperformance suggest potential short-term buying interest, but the prevailing mildly bearish monthly indicators counsel caution. Investors should monitor key support levels near the 52-week low of ₹332.30 and resistance around the recent high of ₹590.00. A sustained break above the daily moving averages and monthly MACD turning bullish would be necessary to confirm a trend reversal.

Fundamental investors should also consider the company’s sector dynamics, including oil price fluctuations and regulatory developments, which could materially impact future performance. The downgrade to a Sell rating by MarketsMOJO underscores the need for a disciplined approach, balancing technical signals with broader market and sector fundamentals.

Summary

Deep Industries Ltd’s technical indicators present a mixed picture: weekly metrics remain bearish while monthly signals have softened to mildly bearish or neutral. The stock’s recent price momentum is encouraging but lacks volume confirmation and broader trend support. With a Mojo Score of 42.0 and a Sell rating, the stock currently faces headwinds that may limit upside in the near term. Investors should remain vigilant, using technical levels and fundamental analysis to guide their decisions in this volatile oil sector stock.

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