Dredging Corporation of India Ltd Sees Bullish Momentum Amid Technical Upgrades

Technical Momentum Gains Traction

The stock closed at ₹1,039.30 on 10 Feb 2026, marking a significant 5.59% increase from the previous close of ₹984.30. Intraday, it touched a high of ₹1,050.55 and a low of ₹991.00, reflecting strong buying interest. This price action comes amid a broader technical trend upgrade from mildly bullish to bullish, suggesting that momentum is gathering pace.

On the daily chart, moving averages have turned decisively bullish, with the stock price comfortably above its short and medium-term averages. This alignment typically indicates sustained upward momentum and can attract momentum-driven traders.

MACD and RSI: Divergent Signals Across Timeframes

The Moving Average Convergence Divergence (MACD) indicator presents a bullish outlook on both weekly and monthly timeframes, reinforcing the positive momentum. The weekly MACD line remains above its signal line, confirming short-term strength, while the monthly MACD also supports a longer-term bullish bias.

Conversely, the Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral zones. This suggests that while momentum is positive, the stock is not yet overbought, leaving room for further upside without immediate risk of a pullback due to overextension.

Bollinger Bands and KST Indicate Mixed Sentiment

Bollinger Bands on the weekly chart are bullish, with the price trending near the upper band, signalling strong buying pressure. The monthly Bollinger Bands are mildly bullish, indicating a gradual strengthening of volatility and trend.

However, the Know Sure Thing (KST) indicator shows a bullish signal on the weekly timeframe but mildly bearish on the monthly scale. This divergence suggests some caution for long-term investors, as the monthly momentum may be facing resistance or consolidation phases.

Volume and Dow Theory Trends Remain Unclear

On-Balance Volume (OBV) and Dow Theory assessments reveal no definitive trend on either weekly or monthly charts. The absence of volume confirmation alongside price gains could imply that the rally is not yet fully supported by strong institutional participation, warranting close monitoring.

Mojo Grade Downgrade Reflects Fundamental Concerns

Despite the positive technical signals, MarketsMOJO downgraded Dredging Corporation of India Ltd’s Mojo Grade from Hold to Sell on 6 Feb 2026, assigning a Mojo Score of 36.0. The downgrade reflects concerns over the company’s fundamentals and market cap grade, which stands at a low 3, indicating limited size and liquidity compared to peers.

This divergence between technical strength and fundamental caution highlights the importance of a balanced investment approach. While the technical indicators suggest potential near-term gains, the fundamental outlook advises prudence.

Comparative Returns Highlight Long-Term Outperformance

Examining DCI’s returns relative to the Sensex reveals a compelling long-term outperformance. Over the past year, the stock has surged 48.38%, vastly outpacing the Sensex’s 7.97% gain. Over three and five years, the stock’s returns stand at 195.59% and 247.13% respectively, compared to the Sensex’s 38.25% and 63.78%. Even on a 10-year horizon, DCI has delivered a robust 209.32% return, closely tracking the Sensex’s 249.97%.

However, short-term returns show some volatility, with a 1-week decline of 3.95% contrasting with a 2.94% gain in the Sensex. The 1-month return of 8.46% for DCI outperforms the Sensex’s 0.59%, indicating recent recovery and momentum build-up.

Price Levels and Volatility Context

Currently trading at ₹1,039.30, DCI remains below its 52-week high of ₹1,245.90 but well above the 52-week low of ₹494.75. This wide trading range underscores the stock’s volatility and potential for significant price swings, which technical traders may seek to exploit.

Given the bullish daily moving averages and weekly MACD, the stock could test resistance near its recent highs if momentum sustains. Conversely, the lack of volume confirmation and mixed monthly indicators suggest that investors should watch for potential pullbacks or consolidation phases.

Investor Takeaway: Balancing Technical Strength with Fundamental Caution

For investors considering Dredging Corporation of India Ltd, the current technical landscape offers encouraging signs of upward momentum. The bullish MACD on weekly and monthly charts, daily moving averages, and supportive Bollinger Bands suggest that the stock could continue to rally in the near term.

However, the downgrade to a Sell Mojo Grade and the low market cap grade highlight underlying fundamental challenges. The absence of clear volume trends and mixed monthly KST readings further counsel caution.

Long-term investors may find value in the stock’s impressive multi-year returns relative to the Sensex, but should remain vigilant for volatility and fundamental developments. Traders focused on momentum could capitalise on the current bullish technical setup, while maintaining tight risk controls given the stock’s wide trading range.

Conclusion

Dredging Corporation of India Ltd’s recent technical parameter changes mark a shift towards stronger bullish momentum, supported by key indicators such as MACD and moving averages. While this technical strength is promising, the fundamental downgrade and mixed volume signals suggest a cautious approach. Investors should weigh these factors carefully, balancing the potential for near-term gains against longer-term risks.

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