Key Events This Week
27 Jan: Sharp rally of 9.17% to Rs.394.80 on strong volume
28 Jan: Price correction of 2.87% amid technical reassessment
29 Jan: Upgrade to Sell rating by MarketsMOJO; technical momentum shifts
30 Jan: Week closes at Rs.373.00, down 0.82% on final session
27 January: Strong Rally on Elevated Volume
Faze Three Ltd began the week with a robust surge, closing at Rs.394.80, up Rs.33.15 or 9.17% from the previous close. This sharp rally was accompanied by a significant volume of 12,161 shares, indicating strong investor interest. The Sensex also advanced by 0.50% to 35,786.84, but Faze Three’s outperformance was notable. The price jump suggested a short-term technical rebound, possibly driven by speculative buying or anticipation of positive developments.
28 January: Price Correction Amid Technical Reassessment
The following day saw a pullback, with the stock retreating 2.87% to close at Rs.383.45 on lower volume of 4,629 shares. Despite the decline, the Sensex gained 1.12% to 36,188.16, indicating broader market strength contrasting with the stock’s correction. The intraday range of Rs.379.05 to Rs.403.90 reflected heightened volatility. This price action coincided with the technical upgrade announcement, suggesting investors were digesting mixed signals about the stock’s near-term outlook.
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29 January: Upgrade to Sell Rating and Technical Momentum Shift
On 29 January, Faze Three Ltd’s investment rating was upgraded from 'Strong Sell' to 'Sell' by MarketsMOJO, reflecting an improvement in technical outlook despite persistent financial challenges. The stock closed at Rs.376.10, down 1.92% from the previous day, on a volume of 1,109 shares. The Sensex rose modestly by 0.22% to 36,266.59.
The upgrade was driven by a nuanced shift in technical indicators: the Moving Average Convergence Divergence (MACD) remained bearish weekly but improved to mildly bearish monthly; the Relative Strength Index (RSI) was neutral; Bollinger Bands indicated mild bearishness weekly and bearishness monthly; and the Know Sure Thing (KST) indicator was bearish weekly but bullish monthly. On-Balance Volume (OBV) readings were mildly bullish, suggesting accumulation despite price weakness.
Fundamentally, the company continues to face headwinds with a 47.28% contraction in profit after tax over six months and a 159.3% plunge in profit before tax excluding other income in the latest quarter. Net sales declined by 2.35%, and operating cash flow was low at Rs.12.27 crores. Institutional interest remains absent, with no domestic mutual fund holdings. Valuation metrics show a moderate ROCE of 7.6% and an enterprise value to capital employed ratio of 1.8, indicating a discount relative to peers.
30 January: Week Closes with Mild Decline
The final trading day saw the stock close at Rs.373.00, down 0.82% on volume of 1,250 shares, while the Sensex declined 0.22% to 36,185.03. The stock’s price remained well below its 52-week high of Rs.747.00 but comfortably above the 52-week low of Rs.318.00, reflecting ongoing volatility. The week’s overall gain of 3.14% outpaced the Sensex’s 1.62% rise, signalling relative resilience despite mixed technical and fundamental signals.
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Daily Price Comparison: Faze Three Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-27 | Rs.394.80 | +9.17% | 35,786.84 | +0.50% |
| 2026-01-28 | Rs.383.45 | -2.87% | 36,188.16 | +1.12% |
| 2026-01-29 | Rs.376.10 | -1.92% | 36,266.59 | +0.22% |
| 2026-01-30 | Rs.373.00 | -0.82% | 36,185.03 | -0.22% |
Key Takeaways
Positive Signals: The upgrade from 'Strong Sell' to 'Sell' reflects a technical easing of bearish momentum, with mildly bullish volume trends and improving monthly indicators such as the KST and MACD. The stock’s weekly outperformance relative to the Sensex (+3.14% vs +1.62%) suggests some resilience amid broader market gains. Valuation metrics indicate the stock trades at a discount to peers, with a moderate ROCE of 7.6% and manageable debt levels (Debt to EBITDA ratio of 1.40).
Cautionary Factors: Fundamental challenges persist, including a 47.28% contraction in PAT over six months and a sharp decline in profit before tax excluding other income. Institutional interest remains absent, and the stock’s price remains far below its 52-week high, reflecting ongoing uncertainty. Technical indicators remain mixed, with daily moving averages and Bollinger Bands signalling bearish momentum, and the MACD still bearish on weekly charts. The stock’s recent volume has been relatively low, raising questions about the sustainability of any recovery.
Conclusion
Faze Three Ltd’s week was characterised by a tentative technical recovery amid persistent financial headwinds. The upgrade to a Sell rating from Strong Sell signals a cautious shift in market sentiment, but the company’s operational challenges and subdued profit growth temper enthusiasm. While the stock outperformed the Sensex over the week, mixed technical signals and low institutional interest suggest that investors should remain vigilant. The stock’s valuation discount may attract value-oriented investors, but the path to a sustained turnaround remains uncertain. Monitoring upcoming quarterly results and technical developments will be crucial for assessing the stock’s trajectory in the near term.
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