Technical Trend Shift and Price Movement
The stock closed at ₹113.65 on 6 Feb 2026, down 1.04% from the previous close of ₹114.85. The intraday range was relatively tight, with a low of ₹112.75 and a high matching the previous close at ₹114.85. This price action reflects a cautious market sentiment amid a broader technical deterioration. Everest Kanto’s 52-week high stands at ₹166.00, while the 52-week low is ₹97.00, indicating the current price is closer to the lower end of its annual range, reinforcing the bearish undertone.
Moving Averages and Momentum Oscillators
Daily moving averages have turned bearish, signalling that short-term price momentum is weakening. The stock’s price remains below key moving averages, which often acts as resistance in a downtrend. The weekly and monthly Moving Average Convergence Divergence (MACD) indicators both remain bearish, confirming sustained negative momentum over medium and longer timeframes. This dual bearish MACD alignment typically suggests that the stock is likely to face continued selling pressure unless a significant catalyst emerges.
The Relative Strength Index (RSI) presents a nuanced picture. While the weekly RSI shows no clear signal, the monthly RSI is bullish, indicating some underlying strength or potential for a longer-term reversal. However, this bullish monthly RSI is currently insufficient to offset the prevailing bearish signals from other indicators.
Bollinger Bands on both weekly and monthly charts are mildly bearish, suggesting that volatility remains subdued but with a downward bias. The stock price is hovering near the lower band, which can sometimes indicate oversold conditions, but in this context, it aligns with the broader bearish trend.
Additional Technical Indicators
The Know Sure Thing (KST) oscillator, a momentum indicator that aggregates multiple rate-of-change calculations, is bearish on both weekly and monthly timeframes. This reinforces the view that momentum is weakening across different periods. Meanwhile, Dow Theory assessments are mixed: weekly readings are mildly bullish, but monthly trends show no clear direction, reflecting some short-term optimism amid longer-term uncertainty.
On-Balance Volume (OBV) indicators show no discernible trend on either weekly or monthly charts, suggesting that volume flows are not strongly supporting either buyers or sellers at present. This lack of volume confirmation often precedes more volatile price moves once a directional bias becomes clearer.
Comparative Performance Versus Sensex
Everest Kanto’s recent returns relative to the benchmark Sensex reveal a mixed performance. Over the past week, the stock outperformed the Sensex with a 3.93% gain versus the Sensex’s 0.91%. However, over the one-month and year-to-date periods, EKC underperformed, declining 1.73% and 2.40% respectively, while the Sensex fell 2.49% and 2.24%. The one-year return is particularly concerning, with EKC down 28.92% compared to the Sensex’s 6.44% gain, highlighting significant underperformance in the medium term.
Longer-term returns tell a more positive story, with EKC delivering 36.68% over three years and an impressive 87.39% over five years, both outperforming the Sensex’s 36.94% and 64.22% respectively. Over a decade, the stock has surged 556.94%, vastly outpacing the Sensex’s 238.44%, underscoring the company’s strong historical growth despite recent setbacks.
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Mojo Score and Ratings Update
MarketsMOJO has downgraded Everest Kanto Cylinder Ltd from a Sell to a Strong Sell rating as of 17 Nov 2025, reflecting deteriorating fundamentals and technicals. The current Mojo Score of 23.0 is well below the threshold for a positive outlook, signalling caution for investors. The Market Cap Grade remains low at 3, indicating limited market capitalisation strength relative to peers in the industrial manufacturing sector.
The downgrade is consistent with the technical trend change from mildly bearish to outright bearish, reinforcing the negative momentum. Investors should note that the combination of a low Mojo Score and bearish technical indicators often precedes further price weakness.
Sector and Industry Context
Within the industrial manufacturing sector, Everest Kanto faces competitive pressures and cyclical headwinds that have weighed on its stock performance. While the sector has shown pockets of resilience, EKC’s technical indicators suggest it is lagging behind peers. The bearish daily moving averages and weekly/monthly MACD readings highlight the stock’s vulnerability in the current market environment.
Investors should also consider the broader macroeconomic factors impacting industrial manufacturing, including raw material costs, demand fluctuations, and global supply chain disruptions, which may further influence EKC’s near-term outlook.
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Investor Takeaway and Outlook
Everest Kanto Cylinder Ltd’s current technical profile suggests caution for investors. The bearish alignment of key momentum indicators such as MACD, KST, and moving averages, combined with a recent downgrade to Strong Sell, indicates that the stock may face further downside pressure in the near term. Although the monthly RSI hints at some underlying strength, it is insufficient to counterbalance the prevailing negative momentum.
Given the stock’s underperformance relative to the Sensex over the past year and year-to-date periods, investors should carefully weigh the risks before initiating or adding to positions. The company’s strong long-term returns remain a positive, but the current technical signals and sector challenges suggest that a cautious approach is warranted.
Monitoring key support levels near the 52-week low of ₹97.00 and watching for any reversal in volume trends or moving average crossovers will be critical for assessing potential changes in momentum. Until then, the technical outlook remains predominantly bearish.
Summary of Key Technical Indicators for Everest Kanto Cylinder Ltd
- Current Price: ₹113.65 (down 1.04%)
- Mojo Score: 23.0 (Strong Sell, downgraded from Sell on 17 Nov 2025)
- Moving Averages (Daily): Bearish
- MACD (Weekly & Monthly): Bearish
- RSI (Weekly): No Signal; (Monthly): Bullish
- Bollinger Bands (Weekly & Monthly): Mildly Bearish
- KST (Weekly & Monthly): Bearish
- Dow Theory (Weekly): Mildly Bullish; (Monthly): No Trend
- OBV (Weekly & Monthly): No Trend
Investors should continue to monitor these indicators closely as they provide valuable insights into the stock’s price momentum and potential trend reversals.
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