Deepak Fertilisers & Petrochemicals Corp Ltd Shows Mixed Technical Signals Amid Price Momentum Shift

Technical Trend Overview and Price Movement

The stock closed at ₹1,261.70 on 5 Jan 2026, marking a 1.43% increase from the previous close of ₹1,243.95. Intraday, it traded between ₹1,228.05 and ₹1,274.75, indicating moderate volatility. Despite this uptick, the stock remains significantly below its 52-week high of ₹1,776.95, while comfortably above its 52-week low of ₹888.25, reflecting a broad trading range over the past year.

Technically, the overall trend has shifted from bearish to mildly bearish, signalling a tentative improvement in price momentum. This is corroborated by the weekly MACD remaining bearish but showing signs of stabilisation, while the monthly MACD is mildly bearish, indicating that longer-term momentum is less negative than before.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, remains bearish on the weekly chart but has softened to a mildly bearish stance on the monthly timeframe. This suggests that while short-term momentum is still under pressure, the longer-term trend is showing signs of potential recovery. The MACD histogram has narrowed, indicating a reduction in downward momentum, which could precede a bullish crossover if buying interest intensifies.

RSI Signals and Market Sentiment

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in a neutral zone. This lack of extreme readings implies that the stock is neither overbought nor oversold, providing a balanced backdrop for potential directional moves. Investors should watch for any RSI movement beyond the 70 or below 30 thresholds, which could signal stronger momentum shifts.

Moving Averages and Bollinger Bands

Daily moving averages remain bearish, with the stock price trading below key averages such as the 50-day and 200-day moving averages. This indicates that the short-term trend is still under pressure, and the stock has yet to confirm a sustained uptrend. Meanwhile, Bollinger Bands on the weekly chart suggest a mildly bearish stance, with the price near the lower band, signalling potential support but also caution. The monthly Bollinger Bands are sideways, reflecting consolidation and indecision among market participants.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator remains bearish on the weekly chart but has improved to mildly bearish on the monthly timeframe, mirroring the MACD’s message of tentative momentum recovery. Dow Theory analysis presents a mildly bullish weekly signal, suggesting that some market participants may be anticipating a trend reversal, although the monthly Dow Theory shows no clear trend.

On the volume front, the On-Balance Volume (OBV) indicator is bullish on the weekly chart, indicating that buying volume is outpacing selling volume in the short term. However, the monthly OBV shows no distinct trend, implying that longer-term accumulation or distribution is unclear. This divergence between volume and price momentum warrants close monitoring.

Comparative Performance Against Sensex

Deepak Fertilisers has delivered mixed returns relative to the benchmark Sensex over various periods. Over the past week, the stock gained 0.60% compared to the Sensex’s 0.85%, slightly underperforming the broader market. Over one month, the stock declined by 4.54%, while the Sensex rose 0.73%, reflecting sector-specific headwinds.

Year-to-date, the stock is down 2.07% against a Sensex gain of 0.64%, and over the last year, it has returned 3.57% compared to the Sensex’s 7.28%. However, the stock’s long-term performance is impressive, with a three-year return of 78.09% versus the Sensex’s 40.21%, a five-year return of 696.78% against 79.16%, and a ten-year return of 677.63% compared to 227.83%. This highlights the company’s strong growth trajectory over the long term despite recent volatility.

Mojo Score and Rating Upgrade

MarketsMOJO has upgraded Deepak Fertilisers & Petrochemicals Corp Ltd’s Mojo Grade from Sell to Hold as of 31 Dec 2025, reflecting improved technical and fundamental outlooks. The current Mojo Score stands at 50.0, indicating a neutral stance. The Market Cap Grade is 3, suggesting a mid-sized market capitalisation within the fertilisers sector. This upgrade signals cautious optimism but advises investors to remain vigilant given the mixed technical signals.

Sector Context and Outlook

The fertilisers sector continues to face challenges from fluctuating input costs, regulatory changes, and variable demand linked to agricultural cycles. Deepak Fertilisers’ technical indicators suggest that while short-term pressures persist, there is potential for stabilisation and gradual recovery. Investors should watch for confirmation of bullish signals such as MACD crossovers, RSI breakouts, and sustained price moves above key moving averages before committing to a stronger buy stance.

Investor Takeaway

Deepak Fertilisers & Petrochemicals Corp Ltd’s recent technical parameter changes reflect a market in transition. The shift from bearish to mildly bearish momentum, combined with neutral RSI readings and mixed moving average signals, suggests that the stock is at a critical juncture. While the weekly OBV and Dow Theory signals hint at emerging bullishness, the daily moving averages and MACD caution against premature optimism.

Long-term investors may find comfort in the company’s robust multi-year returns and recent Mojo Grade upgrade, but short-term traders should await clearer confirmation of trend reversals. Monitoring key technical levels around ₹1,275 and the 50-day moving average will be crucial in the coming weeks. Overall, the stock warrants a Hold rating with a watchful eye on evolving momentum indicators.

Summary of Key Technical Metrics:

• Current Price: ₹1,261.70


• 52-Week High/Low: ₹1,776.95 / ₹888.25


• MACD: Weekly Bearish, Monthly Mildly Bearish


• RSI: Neutral on Weekly and Monthly


• Moving Averages: Daily Bearish


• Bollinger Bands: Weekly Mildly Bearish, Monthly Sideways


• KST: Weekly Bearish, Monthly Mildly Bearish


• Dow Theory: Weekly Mildly Bullish, Monthly No Trend


• OBV: Weekly Bullish, Monthly No Trend


• Mojo Score: 50.0 (Hold, upgraded from Sell)

Conclusion

Deepak Fertilisers & Petrochemicals Corp Ltd is navigating a complex technical landscape with signs of stabilisation amid prevailing bearish pressures. Investors should balance the encouraging volume and momentum signals against the cautionary moving average trends. The stock’s long-term growth story remains intact, but near-term price action will be pivotal in determining its next directional move.

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