Key Events This Week
09 Feb: Upper circuit hit at ₹569.55 (+9.99%) on strong buying momentum
10 Feb: Technical momentum shift amid mixed indicator signals; stock closes at ₹562.40 (-1.78%)
13 Feb: Upper circuit hit again at ₹604.60 (+9.57%) following mixed quarterly results
13 Feb: Week closes at ₹606.60, up 17.08% vs Sensex down 0.54%
09 February 2026: Upper Circuit Surge on Robust Buying
Faze Three Ltd began the week with a striking performance, hitting its upper circuit limit of 9.99% to close at ₹569.55 on 09 February 2026. This surge was driven by strong buying momentum despite a cautious broader market and subdued sector gains. The stock opened with a gap-up of 2.84%, reaching an intraday high at the upper price band, supported by a total traded volume of approximately 1.95 lakh shares and turnover of ₹10.81 crore. Notably, the weighted average price was closer to the day’s low, indicating aggressive accumulation as the session progressed.
Faze Three’s 9.99% gain on this day outpaced the textile sector’s 2.5% rise and the Sensex’s 1.04% advance, underscoring its distinct appeal. The stock traded above all key moving averages, signalling strong technical momentum. However, delivery volumes declined by over 50% compared to the five-day average, suggesting that much of the buying was speculative or short-term in nature. The regulatory freeze triggered by the upper circuit lock indicated unfilled demand, potentially setting the stage for further gains.
10 February 2026: Technical Momentum Shift Amid Mixed Signals
On 10 February, Faze Three’s stock price corrected slightly, closing at ₹552.40, down 1.78% from the previous day’s close. This pullback followed the prior day’s sharp rally and coincided with a nuanced shift in technical momentum. Weekly and monthly indicators suggested a transition from sideways consolidation to a mildly bullish trend, supported by a mildly bullish weekly MACD and bullish Bollinger Bands. However, daily moving averages and the weekly Know Sure Thing (KST) indicator presented bearish or mixed signals, reflecting short-term caution.
The stock’s relative strength index (RSI) hovered in neutral territory, indicating no immediate overbought or oversold conditions. Despite the minor decline, Faze Three’s long-term returns remained impressive, with a 54.08% gain over the past week and a staggering 765.90% over five years, far outpacing the Sensex. The company’s Mojo Score of 31.0, rated Sell but upgraded from Strong Sell, reflected this improving technical backdrop amid ongoing fundamental concerns.
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13 February 2026: Mixed Quarterly Results and Another Upper Circuit
Faze Three Ltd reported mixed quarterly results for Q3 FY2026 on 13 February, posting its highest-ever quarterly net sales of ₹226.93 crores, signalling a positive top-line momentum. However, profitability metrics declined, with Profit Before Tax (excluding other income) falling 23.4% to ₹6.03 crores and Profit After Tax dropping 24.4% to ₹6.40 crores. Operational efficiency showed some improvement, with the Debtors Turnover Ratio reaching a six-month high of 10.06 times, but Return on Capital Employed remained low at 9.13%, and the Debt-Equity Ratio rose to 0.55 times, indicating increased leverage.
Liquidity concerns were evident as cash and cash equivalents fell to ₹9.06 crores, the lowest in six months. Despite these challenges, the stock surged again, hitting the upper circuit limit with a 9.57% gain to close at ₹604.60. The intraday high reached ₹612.05, with a wide trading range reflecting heightened volatility and active participation. Total traded volume was approximately 2.59 lakh shares, with turnover near ₹15.32 crore, demonstrating robust liquidity for a micro-cap stock.
Faze Three’s technical strength was reaffirmed by its position above all key moving averages and consecutive gains over two sessions, delivering a cumulative 16.23% return. This outperformance contrasted sharply with the Sensex’s 1.04% decline and the sector’s 0.91% fall on the same day. However, delivery volumes declined by 16.81% compared to the five-day average, suggesting that short-term traders may have driven much of the buying interest.
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Weekly Price Performance: Stock vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | ₹562.40 | +8.55% | 37,113.23 | +1.04% |
| 2026-02-10 | ₹552.40 | -1.78% | 37,207.34 | +0.25% |
| 2026-02-11 | ₹520.50 | -5.77% | 37,256.72 | +0.13% |
| 2026-02-12 | ₹554.00 | +6.44% | 37,049.40 | -0.56% |
| 2026-02-13 | ₹606.60 | +9.49% | 36,532.48 | -1.40% |
Key Takeaways from the Week
Strong Technical Momentum: Faze Three’s stock demonstrated significant technical strength, hitting the upper circuit twice during the week and consistently trading above key moving averages. This momentum was supported by bullish weekly and monthly indicators despite some mixed short-term signals.
Robust Volume and Liquidity: The stock’s trading volumes and turnover were robust for a micro-cap, with volumes exceeding 2 lakh shares on key rally days. However, delivery volumes declined, indicating a predominance of short-term trading over long-term holding.
Mixed Fundamental Signals: The quarterly results showed encouraging revenue growth but declining profitability and low capital efficiency. Rising leverage and shrinking cash reserves highlight financial risks that temper the positive price action.
Outperformance vs Sensex: The stock’s 17.08% weekly gain starkly contrasted with the Sensex’s 0.54% decline, underscoring Faze Three’s distinct market behaviour and investor interest despite broader market weakness.
Cautious Analyst Sentiment: Despite the rally, the Mojo Grade remains at Sell with a score of 44.0, reflecting ongoing concerns about fundamentals and valuation. This suggests investors should remain vigilant amid the stock’s volatility.
Conclusion
Faze Three Ltd’s week was characterised by strong price rallies, technical momentum shifts, and a mixed fundamental backdrop. The stock’s ability to hit upper circuits twice and outperform the Sensex by over 17% highlights significant investor interest and technical strength. However, the company’s mixed quarterly results, declining profitability, and cautious analyst ratings suggest that the rally is underpinned more by market sentiment and technical factors than by fundamental improvements.
Investors should carefully monitor upcoming financial disclosures and sector developments to assess whether the positive momentum can be sustained. The micro-cap nature of the stock and its current Sell mojo grade warrant a balanced approach, weighing the potential for further gains against the risks of volatility and fundamental headwinds.
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