Delhivery Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Shift and Moving Averages

Recent technical analysis indicates that Delhivery’s price momentum has shifted from a sideways pattern to a mildly bearish trend. The daily moving averages, which are crucial for short-term trend assessment, have turned mildly bearish, suggesting that the stock’s upward momentum is losing steam. The current price stands at ₹410.35, slightly above the previous close of ₹407.20, but still well below its 52-week high of ₹489.95. The 52-week low remains at ₹236.80, highlighting the stock’s considerable volatility over the past year.

Moving averages are often used by traders to identify trend direction and potential support or resistance levels. The mildly bearish signal from the daily moving averages implies that the stock may face resistance in sustaining upward momentum unless buying interest intensifies.

MACD and RSI: Divergent Signals

The Moving Average Convergence Divergence (MACD) indicator presents a mixed outlook. On a weekly basis, the MACD is bearish, indicating that the short-term momentum is weakening relative to the longer-term trend. Conversely, the monthly MACD is mildly bearish, suggesting that while the longer-term trend is not strongly negative, it is losing strength.

The Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, shows no clear signal on both weekly and monthly charts. This neutrality in RSI suggests that the stock is neither overbought nor oversold, leaving room for either a rebound or further decline depending on upcoming market catalysts.

Bollinger Bands and KST Indicator Insights

Bollinger Bands, which measure volatility and potential price extremes, offer contrasting signals. On the weekly timeframe, the bands are mildly bearish, indicating that price volatility is skewed towards the downside. However, the monthly Bollinger Bands are bullish, implying that over a longer horizon, the stock may still have upward potential.

The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change calculations to identify momentum shifts, also shows divergence. The weekly KST is bearish, reinforcing short-term caution, while the monthly KST is bullish, suggesting that the broader trend may still favour gains if short-term pressures ease.

Volume and Dow Theory Analysis

On-Balance Volume (OBV), which combines price and volume to assess buying and selling pressure, is mildly bearish on the weekly chart and bearish on the monthly chart. This suggests that volume trends are not supporting a strong bullish move, with selling pressure potentially outweighing buying interest over the medium term.

Dow Theory, a classical method of trend analysis, also signals mildly bearish trends on both weekly and monthly timeframes. This reinforces the notion that the stock is currently under pressure, with the possibility of further downside unless a significant catalyst reverses the trend.

Performance Comparison with Sensex

Despite the technical caution, Delhivery has delivered robust returns relative to the broader market. Over the past week, the stock surged 5.18%, significantly outperforming the Sensex’s modest 0.31% gain. Over one month, Delhivery’s return was 1.27%, compared to the Sensex’s decline of 2.51%. Year-to-date, the stock is up 1.66%, while the Sensex has fallen 3.11%.

Over a longer horizon, Delhivery’s one-year return of 27.34% far exceeds the Sensex’s 7.88%, though its three-year return of 33.97% trails the Sensex’s 39.16%. This mixed performance highlights the stock’s potential for growth tempered by sector-specific and company-specific risks.

Mojo Score and Market Capitalisation Grade

Delhivery’s current Mojo Score stands at 28.0, reflecting a Strong Sell rating, an upgrade from the previous Sell grade as of 27 Jan 2026. This downgrade signals increased caution from analysts, likely influenced by the recent technical deterioration and volume trends. The company’s market capitalisation grade is 3, indicating a mid-tier valuation relative to its peers in the Transport Services sector.

Investor Takeaway and Outlook

Delhivery Ltd’s technical indicators present a nuanced picture. The mildly bearish signals across multiple timeframes, including MACD, moving averages, and OBV, suggest that the stock is currently facing downward pressure. However, the absence of extreme RSI readings and the bullish monthly Bollinger Bands and KST indicators imply that the longer-term trend may still hold potential for recovery.

Investors should weigh these mixed signals carefully, considering both the company’s relative outperformance against the Sensex in recent periods and the technical caution flags. The Strong Sell Mojo Grade underscores the need for prudence, especially for short-term traders who may be vulnerable to volatility.

Given the current mildly bearish momentum, a cautious approach is advisable. Monitoring volume trends and key support levels near the current price of ₹410.35 will be critical in assessing whether Delhivery can regain upward momentum or if further downside is likely.

Summary of Key Technical Indicators:

• MACD: Weekly Bearish, Monthly Mildly Bearish


• RSI: Neutral on Weekly and Monthly


• Bollinger Bands: Weekly Mildly Bearish, Monthly Bullish


• Moving Averages: Daily Mildly Bearish


• KST: Weekly Bearish, Monthly Bullish


• Dow Theory: Mildly Bearish on Weekly and Monthly


• OBV: Weekly Mildly Bearish, Monthly Bearish

These indicators collectively suggest a short-term cautionary stance with potential for longer-term recovery if positive catalysts emerge.

Market Context

Operating within the Transport Services sector, Delhivery faces sector-specific challenges including fluctuating fuel costs, regulatory changes, and competitive pressures. These factors, combined with broader market volatility, contribute to the technical signals observed. Investors should also consider macroeconomic trends and sector outlooks when evaluating Delhivery’s prospects.

Conclusion

Delhivery Ltd’s recent technical parameter changes highlight a shift towards mildly bearish momentum, tempered by mixed signals across key indicators. While the stock has demonstrated resilience relative to the Sensex, the Strong Sell Mojo Grade and bearish volume trends counsel caution. Investors should closely monitor technical developments and sector dynamics before making significant portfolio decisions involving Delhivery.

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