Dhanuka Agritech Ltd Technical Momentum Shifts Amid Bearish Signals

Price Movement and Market Context

On 6 Feb 2026, Dhanuka Agritech’s share price closed at ₹1,080.20, down 3.81% from the previous close of ₹1,122.95. The intraday range was between ₹1,046.40 and ₹1,123.00, reflecting heightened volatility. The stock remains significantly below its 52-week high of ₹1,960.00, while hovering just above its 52-week low of ₹1,020.00, underscoring the pressure on price levels over the past year.

Comparatively, the stock’s returns have underperformed the Sensex across multiple time frames. Over the past week, Dhanuka Agritech declined by 1.95%, whereas the Sensex gained 0.91%. The one-month and year-to-date returns show a sharper divergence, with the stock down 5.56% and 8.49% respectively, while the Sensex fell by 2.49% and 2.24%. Over a longer horizon, the stock’s 1-year return is deeply negative at -24.09%, contrasting with the Sensex’s 6.44% gain. However, the company has outperformed the benchmark over three and ten years, with returns of 59.53% and 113.90% respectively, albeit lagging the Sensex’s 36.94% and 238.44% gains.

Technical Indicator Analysis

The technical landscape for Dhanuka Agritech has shifted from mildly bearish to outright bearish, signalling increased downside risk. The Moving Average Convergence Divergence (MACD) indicator presents a bearish stance on the weekly chart and mildly bearish on the monthly chart, indicating that momentum is weakening but with some longer-term caution.

The Relative Strength Index (RSI) remains neutral with no clear signal on both weekly and monthly timeframes, suggesting the stock is neither oversold nor overbought. This neutrality implies that momentum could swing either way depending on upcoming market catalysts.

Bollinger Bands reinforce the bearish outlook, showing the stock trading near the lower band on both weekly and monthly charts. This positioning often signals increased selling pressure and potential continuation of the downtrend unless a reversal catalyst emerges.

Daily moving averages are firmly bearish, with the stock price below key averages such as the 50-day and 200-day moving averages. This alignment confirms the prevailing downtrend in the short term.

Additional Technical Signals

The Know Sure Thing (KST) oscillator is bearish on the weekly chart and mildly bearish on the monthly chart, corroborating the MACD’s momentum signals. Meanwhile, Dow Theory analysis offers a mildly bullish signal on the weekly timeframe but no discernible trend on the monthly, indicating some short-term optimism that is not yet confirmed in the broader trend.

On-Balance Volume (OBV) shows mild bullishness weekly but no trend monthly, suggesting that volume flows are not strongly supporting the price decline, which could hint at a potential base-building phase.

Mojo Score and Grade Upgrade

Dhanuka Agritech’s Mojo Score currently stands at 53.0, reflecting a Hold rating, an improvement from the previous Sell grade assigned on 2 Feb 2026. This upgrade suggests a cautious optimism from MarketsMOJO’s quantitative framework, which integrates multiple parameters including price momentum, financial health, and market cap quality. The company’s Market Cap Grade is 3, indicating a mid-tier capitalisation within its sector.

Despite the technical bearishness, the upgrade to Hold may reflect stabilising fundamentals or valuation considerations that temper the negative momentum. Investors should weigh this balanced view carefully, especially given the stock’s recent underperformance relative to the broader market.

Sector and Industry Context

Operating within the pesticides and agrochemicals sector, Dhanuka Agritech faces sector-specific headwinds such as regulatory scrutiny, commodity price fluctuations, and input cost pressures. These factors can exacerbate technical weakness, particularly when combined with broader market volatility. The sector’s performance often correlates with agricultural cycles and government policies, which remain uncertain in the near term.

Against this backdrop, the stock’s technical indicators suggest that investors should remain vigilant for further downside risk, while monitoring for any signs of technical reversal or fundamental improvement.

Long-Term Performance and Investor Implications

While short-term technicals are bearish, Dhanuka Agritech’s long-term returns over three and ten years have been robust, outperforming the Sensex over three years by 22.6 percentage points. This indicates that patient investors with a long-term horizon may find value despite current volatility.

However, the stock’s 5-year return of 43.45% trails the Sensex’s 64.22%, signalling that medium-term performance has lagged the broader market. This mixed performance profile underscores the importance of timing and technical analysis in managing exposure to this stock.

Conclusion: Navigating the Bearish Momentum

In summary, Dhanuka Agritech Ltd’s technical parameters have shifted decisively towards bearishness, with multiple indicators such as MACD, Bollinger Bands, and moving averages signalling downward momentum. The absence of strong RSI signals and mixed volume indicators suggest the potential for consolidation or a base formation, but the prevailing trend remains negative.

The recent Mojo Grade upgrade to Hold reflects a nuanced view that balances technical weakness with possible fundamental stabilisation. Investors should approach the stock with caution, considering both the short-term technical risks and the company’s longer-term growth prospects within the pesticides and agrochemicals sector.

Given the stock’s underperformance relative to the Sensex in the near term, active monitoring of technical signals and sector developments is advisable. Those seeking to capitalise on potential rebounds should watch for confirmation of trend reversals, particularly improvements in MACD momentum and RSI strength.

Unlock special upgrade rates for a limited period. Start Saving Now →