Price Movement and Market Context
On 3 February 2026, Deepak Nitrite closed at ₹1,618.55, marking a 1.82% increase from the previous close of ₹1,589.55. The intraday range spanned from ₹1,565.05 to ₹1,628.95, indicating moderate volatility. Despite this uptick, the stock remains significantly below its 52-week high of ₹2,398.80, while comfortably above its 52-week low of ₹1,512.80. This price action suggests a consolidation phase following a prolonged downtrend over the past year.
Comparatively, Deepak Nitrite’s returns have underperformed the Sensex over multiple time horizons. The stock posted a 3.59% gain over the past week against the Sensex’s 0.16%, but it has declined 5.62% over the last month versus the Sensex’s 4.78% drop. Year-to-date, the stock is down 6.45%, lagging the Sensex’s 4.17% decline. Over one year, the underperformance is stark, with Deepak Nitrite down 30.42% while the Sensex gained 5.37%. Longer-term returns over five and ten years remain robust, with 64.91% and an extraordinary 2,409.38% respectively, underscoring the company’s historical growth trajectory despite recent headwinds.
Technical Trend and Indicator Analysis
The technical trend for Deepak Nitrite has shifted from bearish to mildly bearish, signalling a tentative improvement but still reflecting caution. The daily moving averages remain mildly bearish, indicating that short-term momentum has yet to decisively turn positive. This is consistent with the stock’s recent price consolidation below key resistance levels.
The Moving Average Convergence Divergence (MACD) indicator presents a mixed scenario. On a weekly basis, MACD is mildly bullish, suggesting some upward momentum building in the medium term. However, the monthly MACD remains bearish, indicating that the longer-term trend is still under pressure. This divergence between weekly and monthly MACD readings highlights the stock’s current technical uncertainty.
The Relative Strength Index (RSI) on both weekly and monthly charts shows no clear signal, hovering in neutral territory. This absence of overbought or oversold conditions suggests that the stock is neither strongly trending nor deeply corrected, reinforcing the sideways price action observed.
Bollinger Bands and Other Momentum Indicators
Bollinger Bands on both weekly and monthly timeframes are bearish, implying that price volatility is skewed towards downside risk. The stock price is likely trading near the lower band, which often signals potential support but also warns of persistent selling pressure.
The Know Sure Thing (KST) indicator adds further nuance: weekly KST is mildly bullish, aligning with the weekly MACD’s positive tone, while monthly KST remains bearish. This again points to a short-term momentum improvement that has yet to translate into a sustained long-term uptrend.
Other technical tools such as Dow Theory and On-Balance Volume (OBV) show no definitive trend on weekly or monthly charts, indicating a lack of strong directional conviction from market participants. This absence of volume confirmation tempers optimism about any immediate breakout.
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Mojo Score and Market Capitalisation Insights
Deepak Nitrite currently holds a Mojo Score of 35.0, categorised as a 'Sell' rating, an upgrade from its previous 'Strong Sell' grade as of 12 November 2025. This improvement reflects a slight easing of negative sentiment but still signals caution for investors. The company’s market cap grade stands at 3, indicating a mid-tier capitalisation relative to its sector peers.
The upgrade in Mojo Grade suggests that while the stock’s technical parameters have improved marginally, fundamental or broader market concerns continue to weigh on its outlook. Investors should note that the specialty chemicals sector has faced headwinds from fluctuating raw material costs and global demand uncertainties, which may be reflected in the stock’s subdued momentum.
Comparative Performance and Sectoral Context
When benchmarked against the Sensex and sectoral indices, Deepak Nitrite’s recent underperformance is notable. The stock’s 1-year return of -30.42% contrasts sharply with the Sensex’s 5.37% gain, underscoring company-specific challenges or valuation pressures. However, the long-term 10-year return of 2,409.38% far exceeds the Sensex’s 232.80%, highlighting the company’s historical capacity for value creation.
Technical signals suggest that the stock is in a phase of consolidation, with short-term indicators hinting at mild bullishness but longer-term metrics remaining bearish. This mixed technical picture advises a cautious approach, with investors advised to monitor key support levels near ₹1,565 and resistance around ₹1,630 for potential breakout or breakdown scenarios.
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Investor Takeaway and Outlook
Deepak Nitrite’s technical parameters indicate a stock at a crossroads. The mildly bullish weekly MACD and KST suggest potential for a short-term rebound, but the persistent bearish monthly indicators and neutral RSI readings counsel prudence. The stock’s inability to decisively break above its recent highs and the bearish Bollinger Bands imply that downside risks remain present.
Given the mixed signals, investors should consider a wait-and-watch stance, focusing on confirmation of trend reversals through sustained volume increases and positive momentum shifts. Those with a higher risk tolerance might view the current price levels as an entry point for a tactical position, anticipating a recovery aligned with sectoral improvements and broader market stability.
In summary, while Deepak Nitrite shows signs of technical stabilisation, the overall momentum remains fragile. The stock’s recent upgrade from Strong Sell to Sell reflects this nuanced outlook, balancing cautious optimism with recognition of ongoing challenges.
Summary of Key Technical Metrics:
- Current Price: ₹1,618.55
- 52-Week Range: ₹1,512.80 – ₹2,398.80
- Mojo Score: 35.0 (Sell, upgraded from Strong Sell)
- Technical Trend: Mildly Bearish
- MACD: Weekly Mildly Bullish, Monthly Bearish
- RSI: Neutral (No Signal)
- Bollinger Bands: Bearish (Weekly & Monthly)
- Moving Averages: Daily Mildly Bearish
- KST: Weekly Mildly Bullish, Monthly Bearish
- Dow Theory & OBV: No Clear Trend
Investors should continue to monitor these indicators closely in conjunction with fundamental developments and sectoral trends to make informed decisions.
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