EID Parry (India) Ltd Technical Analysis: Momentum Shifts Signal Bearish Outlook

Technical Trend Overview and Momentum Shift

The latest technical assessment reveals that EID Parry’s overall trend has shifted from mildly bearish to outright bearish. This change is underscored by the weekly Moving Average Convergence Divergence (MACD) indicator, which remains bearish, while the monthly MACD is mildly bearish, indicating persistent downward pressure over both short and medium terms. The Relative Strength Index (RSI) on weekly and monthly charts currently shows no definitive signal, reflecting a lack of strong momentum either way.

On the daily chart, moving averages have turned bearish, reinforcing the short-term negative outlook. The stock’s current price stands at ₹945.00, slightly up by 0.07% from the previous close of ₹944.35, but this marginal gain belies the underlying technical weakness. The daily high and low for the session were ₹953.45 and ₹926.35 respectively, indicating some intraday volatility but no decisive breakout.

Bollinger Bands and KST Indicator Insights

Bollinger Bands provide a mixed picture: weekly readings are mildly bearish, suggesting the stock price is closer to the lower band and may be under selling pressure. Conversely, the monthly Bollinger Bands signal a mildly bullish stance, hinting at potential support or consolidation at longer time frames. The Know Sure Thing (KST) indicator, which helps identify momentum shifts, is bearish on the weekly scale and mildly bearish monthly, further confirming the cautious stance.

Volume and Dow Theory Signals

Volume-based indicators such as On-Balance Volume (OBV) show no clear trend on the weekly chart but indicate mild bearishness on the monthly scale. This suggests that selling pressure may be gradually increasing, although not yet decisively. Dow Theory assessments align with this view, with both weekly and monthly readings mildly bearish, signalling that the broader market sentiment for EID Parry remains subdued.

Price Performance Relative to Sensex

Despite the technical headwinds, EID Parry’s price performance over various time horizons has outpaced the benchmark Sensex. Over the past week, the stock returned 0.60%, outperforming the Sensex’s marginal decline of 0.01%. However, over the last month and year-to-date periods, the stock has underperformed, with returns of -8.00% and -8.73% respectively, compared to the Sensex’s -1.31% and -1.94%. Longer-term returns remain robust, with a 10.06% gain over one year versus Sensex’s 8.47%, and an impressive 421.81% over ten years compared to the Sensex’s 241.73%.

Mojo Score and Rating Revision

MarketsMOJO’s latest evaluation assigns EID Parry a Mojo Score of 43.0, reflecting a Sell rating, downgraded from a previous Hold as of 08 Jan 2026. This downgrade is consistent with the deteriorating technical indicators and the bearish trend shift. The company’s Market Cap Grade remains modest at 3, indicating a mid-tier market capitalisation relative to peers in the fertiliser sector.

Sector Context and Comparative Analysis

Within the fertilisers industry, EID Parry’s technical deterioration contrasts with some peers that have maintained or improved momentum. The sector itself has faced headwinds from fluctuating input costs and regulatory pressures, which have impacted earnings visibility and investor sentiment. EID Parry’s technical weakness may reflect these broader challenges, compounded by the stock’s recent price underperformance relative to the Sensex over the short term.

Moving Averages and Short-Term Outlook

The daily moving averages have turned bearish, signalling that the stock’s short-term trend is negative. This is a critical warning for traders relying on momentum strategies, as the stock may face resistance near current levels. The lack of a strong RSI signal suggests the stock is not yet oversold, implying further downside risk remains possible before a meaningful reversal could occur.

Investor Implications and Strategic Considerations

Investors should approach EID Parry with caution given the current technical landscape. The bearish momentum and downgrade in rating suggest that the stock may struggle to sustain gains in the near term. However, the long-term performance metrics remain encouraging, indicating that patient investors with a longer horizon may find value if the company can navigate sector headwinds and improve fundamentals.

Summary and Outlook

In summary, EID Parry (India) Ltd’s technical indicators have shifted decisively towards a bearish stance, with weekly and daily charts signalling increased selling pressure. The downgrade in Mojo Grade to Sell aligns with these signals, reflecting a cautious stance from analysts. While the stock’s long-term returns remain strong relative to the Sensex, short-term momentum challenges and sector headwinds suggest investors should monitor developments closely before committing fresh capital.

Given the mixed signals from monthly Bollinger Bands and the absence of RSI extremes, a potential consolidation phase cannot be ruled out. However, until a clear technical reversal emerges, the prevailing trend remains negative. Investors seeking exposure to the fertiliser sector may wish to consider alternative stocks with stronger technical profiles and more favourable ratings.

Technical Indicator Summary Table

Key technical indicators for EID Parry as of 19 Jan 2026:

• MACD: Weekly Bearish, Monthly Mildly Bearish


• RSI: Weekly No Signal, Monthly No Signal


• Bollinger Bands: Weekly Mildly Bearish, Monthly Mildly Bullish


• Moving Averages (Daily): Bearish


• KST: Weekly Bearish, Monthly Mildly Bearish


• Dow Theory: Weekly Mildly Bearish, Monthly Mildly Bearish


• OBV: Weekly No Trend, Monthly Mildly Bearish

Price and Volume Snapshot

Current Price: ₹945.00 | Previous Close: ₹944.35 | Day Change: +0.07%

52-Week High: ₹1,246.45 | 52-Week Low: ₹639.30

Today’s High: ₹953.45 | Today’s Low: ₹926.35

Returns Comparison with Sensex

Period-wise returns (%) as of 19 Jan 2026:

• 1 Week: Stock +0.60%, Sensex -0.01%


• 1 Month: Stock -8.00%, Sensex -1.31%


• Year-to-Date: Stock -8.73%, Sensex -1.94%


• 1 Year: Stock +10.06%, Sensex +8.47%


• 3 Years: Stock +73.44%, Sensex +39.07%


• 5 Years: Stock +172.14%, Sensex +70.43%


• 10 Years: Stock +421.81%, Sensex +241.73%

Investors should weigh these returns against the current technical signals and sector outlook before making investment decisions.

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