Dredging Corporation of India Ltd: Technical Momentum Shifts Amid Mixed Signals

Technical Momentum and Price Action

As of 13 Feb 2026, DCI’s stock price closed at ₹1,004.00, down 1.36% from the previous close of ₹1,017.80. The intraday range saw a low of ₹1,004.00 and a high of ₹1,036.15, indicating some volatility within the session. The stock remains well above its 52-week low of ₹494.75 but still below its 52-week high of ₹1,245.90, suggesting a wide trading band over the past year.

The technical trend has shifted from bullish to mildly bullish, signalling a tempering of upward momentum. This is corroborated by the daily moving averages which are mildly bullish, indicating that while the short-term trend remains positive, the pace of gains has slowed.

MACD and Momentum Oscillators

The Moving Average Convergence Divergence (MACD) indicator remains bullish on both weekly and monthly timeframes, signalling that the underlying momentum is still supportive of higher prices. The weekly MACD suggests recent positive momentum, while the monthly MACD confirms a longer-term bullish trend. However, the absence of a strong signal from the Relative Strength Index (RSI) on both weekly and monthly charts indicates that the stock is neither overbought nor oversold, reflecting a neutral momentum stance.

This lack of RSI signal suggests that the stock is consolidating rather than trending aggressively, which aligns with the mildly bullish moving averages and the recent price action.

Bollinger Bands and Volatility

Bollinger Bands on the weekly chart remain bullish, indicating that the stock price is trading near the upper band, a sign of strength and potential continuation of the upward trend. On the monthly chart, the bands are mildly bullish, suggesting moderate volatility and a less aggressive price movement over the longer term.

Other Technical Indicators

The Know Sure Thing (KST) indicator shows a bullish signal on the weekly timeframe but mildly bearish on the monthly scale. This divergence points to short-term strength but some caution in the longer term. The On-Balance Volume (OBV) indicator is bullish weekly but shows no clear trend monthly, implying that recent buying volume supports the price but longer-term volume trends are inconclusive.

Dow Theory analysis reveals no clear trend on either weekly or monthly charts, reinforcing the view that the stock is in a phase of consolidation or transition rather than a decisive directional move.

Mojo Score and Grade Downgrade

MarketsMOJO has downgraded Dredging Corporation of India Ltd’s Mojo Grade from Hold to Sell as of 6 Feb 2026, reflecting a more cautious outlook. The current Mojo Score stands at 36.0, which is relatively low and indicative of weak overall fundamentals or technical positioning. The Market Cap Grade is 3, signalling a small-cap status with associated volatility and liquidity considerations.

This downgrade aligns with the recent price weakness and the shift to a mildly bullish technical trend, suggesting that investors should exercise caution and closely monitor further developments.

Comparative Returns and Market Context

Despite recent short-term weakness, DCI’s longer-term returns have been impressive relative to the broader market. Over the past year, the stock has delivered a remarkable 55.68% return compared to the Sensex’s 9.85%. Over three and five years, the stock’s returns of 181.39% and 237.08% respectively far outpace the Sensex’s 37.89% and 62.34%. However, over the past 10 years, the stock’s 230.37% return trails the Sensex’s 264.02%, indicating some relative underperformance in the very long term.

Shorter-term returns have been mixed, with a 1-week decline of 0.19% versus a Sensex gain of 0.43%, and a 1-month drop of 2.91% compared to a slight Sensex decline of 0.24%. Year-to-date, the stock has marginally outperformed the Sensex with a 0.77% gain versus a 1.81% loss for the benchmark.

Investment Implications and Outlook

The technical indicators suggest that Dredging Corporation of India Ltd is currently in a phase of mild bullishness but with caution warranted due to mixed signals from momentum oscillators and volume indicators. The MACD’s bullish stance is encouraging, but the neutral RSI and lack of clear Dow Theory trends imply limited conviction in the current move.

Investors should note the recent downgrade in Mojo Grade to Sell, which reflects underlying concerns despite the stock’s strong historical returns. The mildly bullish moving averages and Bollinger Bands suggest potential for a gradual recovery or consolidation rather than a sharp rally.

Given the stock’s volatility and small-cap nature, it may be best suited for investors with a higher risk tolerance who can monitor technical developments closely. Those seeking more stable or stronger momentum plays might consider alternatives within the sector or broader market.

Summary

Dredging Corporation of India Ltd’s technical profile is currently characterised by a transition from bullish to mildly bullish momentum, with key indicators such as MACD and Bollinger Bands supporting a cautiously optimistic outlook. However, the neutral RSI and mixed signals from KST and OBV suggest that the stock is consolidating rather than trending decisively. The recent downgrade in Mojo Grade to Sell underscores the need for prudence.

Long-term returns remain robust, significantly outperforming the Sensex over one, three, and five years, though short-term price action has been less favourable. Investors should weigh the stock’s technical signals alongside its fundamental and market context before making allocation decisions.

Continued monitoring of momentum indicators and volume trends will be essential to gauge whether DCI can regain stronger bullish momentum or if further weakness lies ahead.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →