Recent Price Movement and Market Context
The stock closed at ₹1,247.90 on 2 Jan 2026, down 3.14% from the previous close of ₹1,288.40. Intraday volatility saw a high of ₹1,296.00 and a low of ₹1,237.00, reflecting investor uncertainty. The 52-week range remains wide, with a high of ₹1,776.95 and a low of ₹888.25, underscoring significant price swings over the past year.
Comparatively, Deepak Fertilisers has outperformed the Sensex over longer horizons, delivering a 5-year return of 688.06% against the Sensex’s 77.96%, and a 10-year return of 669.12% versus 225.63%. However, in the short term, the stock has underperformed, with a 1-month return of -8.02% compared to the Sensex’s -0.53%, and a year-to-date decline of -3.14% against a marginal Sensex fall of -0.04%.
Technical Indicators Signal Bearish Momentum
Technical analysis reveals a shift from a mildly bearish to a bearish trend. The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart and mildly bearish on the monthly chart, indicating sustained downward momentum but with some longer-term moderation.
The Relative Strength Index (RSI) currently shows no clear signal on both weekly and monthly timeframes, suggesting the stock is neither oversold nor overbought, but this neutrality may precede further directional moves.
Bollinger Bands on both weekly and monthly charts are bearish, signalling increased volatility with price action tending towards the lower band, a classic sign of downward pressure.
Daily moving averages confirm the bearish stance, with the stock trading below key averages, reinforcing the negative momentum in the short term.
Additional Technical Measures
The Know Sure Thing (KST) oscillator is bearish on the weekly chart and mildly bearish on the monthly, aligning with the MACD’s indications of weakening momentum. Meanwhile, Dow Theory presents a mildly bullish signal on the weekly timeframe but no discernible trend on the monthly, reflecting some short-term optimism amid broader uncertainty.
On-Balance Volume (OBV) is bullish weekly but shows no trend monthly, suggesting that while volume supports price gains in the short term, this strength is not yet confirmed over longer periods.
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Mojo Score and Rating Update
MarketsMOJO has upgraded Deepak Fertilisers & Petrochemicals Corp Ltd’s rating from Sell to Hold as of 31 Dec 2025, reflecting a cautious stance amid the current technical environment. The Mojo Score stands at 50.0, indicating a neutral outlook. The Market Cap Grade is 3, suggesting a mid-tier market capitalisation relative to peers in the fertilisers sector.
This rating upgrade signals that while the stock is no longer considered a sell, investors should remain vigilant given the bearish technical signals and recent price weakness.
Sector and Industry Context
Operating within the fertilisers industry, Deepak Fertilisers faces sector-specific challenges including commodity price fluctuations, regulatory changes, and input cost pressures. The sector has seen mixed performance recently, with some companies benefiting from government support and rising agricultural demand, while others grapple with margin compression.
Against this backdrop, Deepak Fertilisers’ technical deterioration may reflect broader sector headwinds as well as company-specific factors.
Long-Term Performance and Investor Implications
Despite recent setbacks, the stock’s long-term returns remain impressive. Over three years, it has delivered a 74.48% return compared to the Sensex’s 40.02%, underscoring its growth potential. However, the divergence in short-term performance highlights the importance of timing and technical analysis for investors considering entry or exit points.
Investors should weigh the current bearish technical signals against the company’s fundamental strengths and long-term track record. The absence of strong RSI signals suggests the stock is not yet oversold, implying further downside risk cannot be ruled out.
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Technical Outlook and Strategic Considerations
Given the current technical landscape, traders and investors should approach Deepak Fertilisers with caution. The bearish MACD and moving averages suggest that downward momentum may persist in the near term. The weekly OBV’s bullishness offers some counterbalance, indicating that volume supports price stability, but this has yet to translate into a sustained uptrend.
Monitoring the stock’s behaviour around key support levels near ₹1,237 and the 52-week low of ₹888.25 will be critical. A break below these could accelerate selling pressure, while a rebound above daily moving averages might signal a potential recovery.
Investors should also keep an eye on sector developments and commodity price trends, which could materially impact the company’s fundamentals and, by extension, its technical profile.
Summary
Deepak Fertilisers & Petrochemicals Corp Ltd currently exhibits bearish technical momentum, with multiple indicators pointing to a challenging near-term outlook. While the company’s long-term returns remain robust, recent price declines and technical deterioration warrant a cautious stance. The upgrade to a Hold rating by MarketsMOJO reflects this balanced view, suggesting investors should monitor developments closely and consider peer comparisons before making fresh commitments.
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