Diamond Power Infrastructure Ltd Faces Bearish Momentum Amid Technical Deterioration

Technical Trend Shift and Price Movement

Diamond Power Infrastructure Ltd (stock code 483370) closed at ₹124.35 on 9 Feb 2026, down 0.64% from the previous close of ₹125.15. The stock’s intraday range was between ₹123.05 and ₹126.15, reflecting modest volatility. Over the past 52 weeks, the share price has oscillated between a low of ₹81.00 and a high of ₹185.10, indicating a wide trading band and significant price swings.

Recent technical assessments reveal a deterioration in momentum. The overall technical trend has shifted from mildly bearish to bearish, signalling increased selling pressure. This shift is corroborated by multiple technical indicators across different timeframes.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart and mildly bearish on the monthly chart. This suggests that the short-term momentum is weakening more sharply than the longer-term trend, which still shows some residual strength but is under pressure. The bearish weekly MACD indicates that the stock’s recent price declines are supported by declining momentum, a warning sign for traders looking for a rebound.

The Know Sure Thing (KST) indicator aligns with this view, showing bearish signals on the weekly timeframe and mildly bearish readings monthly. This convergence of momentum indicators points to a sustained downtrend in the near term.

Relative Strength Index and Bollinger Bands

The Relative Strength Index (RSI) currently shows no clear signal on both weekly and monthly charts, hovering in a neutral zone. This lack of oversold or overbought conditions suggests that the stock is not yet at an extreme valuation level, leaving room for further downside or sideways consolidation.

Bollinger Bands on weekly and monthly charts are mildly bearish, indicating that price volatility is increasing with a downward bias. The stock price is closer to the lower band, which often acts as a support level, but the mild bearishness implies that this support may be tested further.

Moving Averages and Volume Trends

Daily moving averages confirm the bearish stance, with the stock trading below key averages such as the 50-day and 200-day moving averages. This technical positioning typically signals a negative trend and can deter short-term buyers.

On the volume front, the On-Balance Volume (OBV) indicator is mildly bearish on the weekly chart and shows no clear trend monthly. This suggests that selling pressure is present but not yet overwhelming, indicating a cautious market sentiment among investors.

Comparative Returns and Market Context

Despite the recent technical weakness, Diamond Power Infrastructure Ltd has delivered impressive long-term returns. Over the past year, the stock has gained 22.75%, significantly outperforming the Sensex’s 7.07% return. The five-year return is extraordinary at 99,380%, dwarfing the Sensex’s 64.75% over the same period. Even the ten-year return of 3,457.94% far exceeds the Sensex’s 239.52%, highlighting the stock’s historical growth potential.

However, short-term returns have been disappointing. The stock declined 12.71% over the past month compared to a modest 1.74% drop in the Sensex. Year-to-date, the stock is down 9.86%, while the Sensex has fallen 1.92%. This divergence suggests that recent market pressures and sector-specific challenges are weighing on Diamond Power more heavily than the broader market.

Sector and Industry Technical Overview

Within the Other Electrical Equipment sector, Diamond Power’s technical indicators are consistent with a broader cautious stance. Dow Theory assessments are mildly bearish on both weekly and monthly charts, reflecting a tentative market environment. The company’s Mojo Score has deteriorated to 23.0, with a Mojo Grade downgraded from Sell to Strong Sell as of 13 Jan 2026, signalling a significant negative revision in technical and fundamental outlooks.

The Market Cap Grade remains low at 3, indicating limited market capitalisation strength relative to peers. This combination of technical and fundamental metrics suggests that investors should approach the stock with caution, especially in the absence of clear bullish signals from momentum indicators.

Investor Implications and Outlook

For investors, the current technical landscape of Diamond Power Infrastructure Ltd suggests a cautious approach. The bearish momentum across multiple indicators, combined with a downgrade to a Strong Sell Mojo Grade, indicates that the stock may face further downside pressure in the near term.

However, the absence of extreme RSI signals and the stock’s proximity to its 52-week low of ₹81.00 could offer a potential support zone. Long-term investors who have benefited from the stock’s exceptional historical returns may consider monitoring for signs of technical reversal before adding to positions.

Traders should watch for any improvement in MACD and KST indicators, as well as a break above key moving averages, to signal a possible shift back to a more positive momentum. Until then, the prevailing technical signals favour a defensive stance.

Summary

Diamond Power Infrastructure Ltd’s technical parameters have shifted decisively towards bearishness, reflecting weakening price momentum and increased selling pressure. While the stock boasts impressive long-term returns, recent monthly and year-to-date performance lag the broader market. Key indicators such as MACD, KST, and moving averages confirm the negative trend, while RSI and OBV remain neutral to mildly bearish.

Investors should weigh these technical signals carefully against the company’s fundamentals and sector outlook before making investment decisions. The downgrade to a Strong Sell Mojo Grade underscores the need for prudence in the current market environment.

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