Price Movement and Market Context
On 2 Feb 2026, Deepak Nitrite’s share price closed at ₹1,589.55, down 3.17% from the previous close of ₹1,641.65. The intraday range saw a high of ₹1,642.00 and a low of ₹1,579.50, reflecting heightened volatility. The stock remains significantly below its 52-week high of ₹2,398.80, while hovering just above its 52-week low of ₹1,512.80, underscoring the recent downward pressure.
Comparatively, the stock’s returns have underperformed the broader Sensex index over multiple time horizons. While the Sensex posted a 5.16% gain over the past year, Deepak Nitrite declined by 30.34%. Year-to-date, the stock is down 8.12%, lagging the Sensex’s 5.28% loss. Over three and five years, the stock’s returns of -13.60% and 63.63% respectively trail the Sensex’s 35.67% and 74.40% gains, highlighting persistent underperformance despite a stellar 10-year return of 2,317.57% versus the Sensex’s 224.57%.
Technical Trend Shift: From Mildly Bearish to Bearish
Recent technical analysis reveals a shift in Deepak Nitrite’s trend from mildly bearish to outright bearish. This transition is corroborated by multiple indicators across different time frames, signalling a weakening price momentum and increasing downside risk.
The daily moving averages have turned bearish, with the stock trading below key averages, indicating sustained selling pressure. The weekly Bollinger Bands and monthly Bollinger Bands both reflect bearish conditions, suggesting the stock is trading near or below the lower band, a sign of downward momentum and potential oversold conditions.
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MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On the weekly chart, the MACD remains mildly bullish, suggesting some short-term positive momentum. However, the monthly MACD is bearish, indicating that the longer-term trend is weakening. This divergence between weekly and monthly MACD readings points to a potential short-term relief rally within an overall bearish framework.
The Know Sure Thing (KST) indicator aligns with this view, showing mild bullishness on the weekly scale but bearishness on the monthly scale. This further emphasises the conflicting signals between short-term and long-term momentum, complicating the outlook for traders and investors.
Relative Strength Index (RSI) and Volume Trends
The RSI readings on both weekly and monthly charts currently show no clear signal, hovering in neutral zones without indicating overbought or oversold conditions. This lack of directional RSI signal suggests that momentum is not yet decisively skewed, but the absence of bullish RSI support adds to the cautious stance.
Volume-based indicators such as On-Balance Volume (OBV) also show no discernible trend on weekly or monthly timeframes, implying that volume is not confirming any strong directional move. This absence of volume confirmation often precedes more volatile price action or trend reversals.
Dow Theory and Market Sentiment
According to Dow Theory assessments, there is no clear trend on either weekly or monthly charts. This lack of trend confirmation from a classical market theory perspective adds to the uncertainty surrounding Deepak Nitrite’s near-term price direction.
Moving Averages and Daily Price Action
Daily moving averages have turned bearish, with the stock price consistently trading below its short-term and medium-term averages. This technical setup typically signals that sellers are in control and that the stock may face further downside pressure unless a significant catalyst reverses the trend.
Given the current price of ₹1,589.55, the stock is trading closer to its 52-week low than its high, reinforcing the bearish technical stance. Investors should be wary of potential support tests near the lower band of the Bollinger Bands and the 52-week low level of ₹1,512.80.
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Mojo Score and Analyst Ratings
MarketsMOJO assigns Deepak Nitrite a Mojo Score of 30.0, reflecting a Sell rating. This is a downgrade from the previous Strong Sell grade issued on 12 Nov 2025, indicating a slight improvement but still a negative outlook. The Market Cap Grade stands at 3, signalling a mid-tier market capitalisation with moderate liquidity and investor interest.
The downgrade from Strong Sell to Sell suggests that while the stock’s outlook remains weak, some technical parameters may have stabilised marginally. However, the overall bearish trend and negative momentum indicators imply that investors should remain cautious and consider risk management strategies.
Investment Implications and Outlook
Deepak Nitrite’s technical profile reveals a stock under pressure, with bearish moving averages, negative Bollinger Band trends, and mixed momentum indicators. The divergence between weekly and monthly MACD and KST readings suggests potential short-term rallies within a longer-term downtrend, but the absence of strong RSI or volume confirmation tempers optimism.
Investors should monitor key support levels near ₹1,512.80 and watch for any shifts in volume or momentum that could signal a reversal. Given the stock’s underperformance relative to the Sensex and the specialty chemicals sector, a cautious approach is warranted.
Long-term investors may find value in the stock’s attractive 10-year return of over 2,300%, but near-term technical signals advise prudence. Traders should consider waiting for clearer bullish confirmation before initiating fresh positions.
Summary
In summary, Deepak Nitrite Ltd. is currently exhibiting bearish technical characteristics, with a downgrade in analyst sentiment and a challenging price momentum environment. While short-term indicators show mild bullishness, the dominant monthly and daily trends remain negative. Investors should weigh these technical signals carefully against fundamental factors and broader market conditions before making investment decisions.
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