Gandhar Oil Refinery Gains 1.12%: 5 Key Factors Driving the Week’s Momentum

Monday, 5 January: Sharp Rebound on High Volume

Gandhar Oil Refinery began the week with a robust rally, closing at Rs.167.30, a gain of 10.47% on the day. The stock hit an intraday high of Rs.167, marking a significant rebound after prior declines. This surge was accompanied by exceptional trading volume of over 5.5 million shares, translating to a traded value exceeding ₹540 crores, underscoring strong market participation. The stock outperformed the Sensex, which declined 0.18% to 37,730.95, and the oil sector peers by nearly 10%.

Technically, the stock traded above all key moving averages, signalling a positive short- to long-term trend reversal. However, delivery volumes were mixed, suggesting some speculative activity alongside genuine accumulation. The MarketsMOJO rating was upgraded to Hold on 31 December 2025, reflecting stabilisation in outlook.

Tuesday, 6 January: Institutional Interest Drives Further Gains

The momentum continued on 6 January with Gandhar Oil closing at Rs.173.10, up 3.47%. The stock recorded a traded volume of 1.22 crore shares and a traded value of ₹216 crore, highlighting strong liquidity and institutional participation. Delivery volumes surged dramatically by over 3,560% compared to the five-day average, indicating conviction buying by long-term investors.

Despite the Oil Exploration and Refinery sector declining 2.22% and the Sensex slipping 0.19%, Gandhar Oil outperformed significantly, gaining 5.64% intra-day. Technical indicators remained bullish with the stock trading above all major moving averages. However, MarketsMOJO downgraded the mojo grade to Sell on 5 January 2026, reflecting concerns over long-term financial trends despite short-term strength.

Wednesday, 7 January: Technical Upgrade Amid Mixed Signals

On 7 January, Gandhar Oil closed lower at Rs.164.35, down 5.05%, reflecting profit-taking after two strong sessions. Despite the decline, MarketsMOJO upgraded the mojo grade back to Hold with a score of 64.0, citing improved technical indicators and valuation metrics. The stock traded within a range of Rs.170.50 to Rs.179.00 intraday, showing volatility but with an upward bias.

Technical momentum shifted from mildly bearish to mildly bullish, supported by weekly MACD and KST indicators, bullish Bollinger Bands on weekly charts, and positive On-Balance Volume trends. However, the weekly RSI remained bearish and daily moving averages mildly bearish, indicating caution. The stock outperformed the Sensex’s 0.03% gain, which closed at 37,669.63.

Thursday and Friday, 8-9 January: Price Correction Amid Sector Weakness

The last two trading days saw Gandhar Oil decline steadily, closing at Rs.158.75 (-3.41%) on 8 January and Rs.153.15 (-3.53%) on 9 January. These declines occurred alongside a sharp Sensex fall of 1.41% and 0.89% respectively, reflecting broader market weakness and sectoral pressures. Trading volumes contracted significantly, with only 112,653 shares on 8 January and 65,224 shares on 9 January, suggesting reduced investor enthusiasm.

The stock’s technical indicators showed short-term bearishness, with daily moving averages and RSI signalling weakening momentum. Despite this, the stock ended the week with a net gain of 1.12%, outperforming the Sensex’s 2.62% loss, highlighting relative resilience amid volatility.

Key Takeaways: Strengths and Cautions

Positive Signals: Gandhar Oil demonstrated strong relative strength this week, outperforming the Sensex by 3.74%. The stock’s surge on 5 and 6 January was supported by exceptional volume and value turnover, indicating institutional interest and accumulation. Technical indicators improved midweek, prompting a mojo rating upgrade to Hold. The company’s conservative leverage and operational resilience underpin its fundamental quality.

Cautionary Notes: Despite short-term gains, the stock faced profit-taking and price corrections later in the week amid sector weakness. The downgrade to Sell on 5 January reflected concerns over long-term financial trends, including declining sales and operating profits over five years. Mixed technical signals, including bearish RSI and daily moving averages, suggest volatility and the need for caution. Reduced volumes on Thursday and Friday highlight waning momentum.

Conclusion: A Week of Mixed Momentum with Relative Resilience

Gandhar Oil Refinery’s performance in the week ending 9 January 2026 was characterised by a strong early rally driven by volume surges and institutional interest, followed by a technical upgrade and subsequent price correction amid sectoral weakness. The stock’s ability to outperform the Sensex despite a challenging oil sector backdrop highlights its relative strength and market interest.

However, the mixed fundamental signals, including a downgrade to Sell midweek and long-term financial challenges, alongside volatile technical indicators, suggest that investors should approach the stock with measured caution. Monitoring upcoming quarterly results, sector developments, and technical confirmations will be essential to assess the sustainability of the current momentum.

Overall, Gandhar Oil Refinery remains a stock of interest within the small-cap oil refining space, balancing operational resilience and valuation appeal against sector headwinds and mixed technical trends.

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