Gandhar Oil Refinery Gains 9.64%: 3 Key Factors Driving the Weekly Rally

18 May 2026: Upgrade to Hold Rating Spurs Initial Gains

On 18 May, Gandhar Oil Refinery’s stock opened the week on a positive note following MarketsMOJO’s upgrade of its investment rating from Sell to Hold. This upgrade was driven by a combination of improved technical indicators and strong quarterly financial results. The stock closed at ₹158.75, up 5.94% from the previous close of ₹149.85, marking a robust start to the week despite the Sensex declining 0.35% to 35,114.86.

The upgrade reflected a stabilisation in the stock’s technical profile, with weekly MACD turning mildly bullish and Bollinger Bands signalling potential upward movement. Financially, the company reported a 44.2% increase in profit before tax (excluding other income) to ₹41.56 crores and a 38.9% rise in profit after tax to ₹32.39 crores for Q3 FY25-26. These results, alongside a conservative debt-to-equity ratio of 0.10 and a return on capital employed of 10.6%, reinforced confidence in the stock’s near-term prospects.

19 May 2026: Technical Momentum Shifts Amid Market Recovery

On 19 May, Gandhar Oil Refinery continued its upward trajectory, closing at ₹159.45, a 0.44% gain from the previous day’s close. The stock’s intraday range between ₹147.65 and ₹160.30 reflected increased volatility and trading activity. This day marked a technical momentum shift from mildly bearish to a sideways trend, supported by a mildly bullish weekly MACD and bullish weekly Bollinger Bands, although monthly indicators remained cautious.

Relative to the Sensex, which rose 0.25% to 35,201.48, Gandhar Oil outperformed, continuing its trend of resilience amid broader market fluctuations. The stock’s year-to-date gain of 2.85% contrasted with the Sensex’s 11.62% decline, highlighting its relative strength. However, daily moving averages remained mildly bearish, indicating some short-term resistance.

20 May 2026: Minor Correction Amid Consolidation

The stock experienced a slight pullback on 20 May, closing at ₹159.05, down 0.25% from the previous day. This minor correction occurred despite the Sensex advancing 0.28% to 35,299.20. The reduced volume of 13,701 shares suggested a consolidation phase as investors digested the recent gains and awaited further signals. Technical indicators remained mixed, with the weekly MACD still mildly bullish but daily moving averages continuing to show mild bearishness.

21 May 2026: Mild Bullish Momentum Emerges

On 21 May, Gandhar Oil Refinery rebounded strongly, closing at ₹163.50, a 2.80% gain from the previous close. This marked the highest close of the week, supported by a surge in volume to 63,400 shares. The stock’s intraday high of ₹167.00 indicated renewed buying interest and increased volatility. The Sensex also rose modestly by 0.12% to 35,340.31, but Gandhar Oil’s outperformance was notable.

Technical momentum shifted from sideways to mildly bullish, with weekly MACD and Bollinger Bands signalling upward bias. However, daily moving averages remained mildly bearish, and the Know Sure Thing (KST) indicator stayed bearish on the weekly chart, suggesting some caution among momentum traders. The monthly Bollinger Bands turned bullish, indicating expanding price volatility and potential for sustained gains.

22 May 2026: Week Closes on Positive Note

The week concluded on 22 May with Gandhar Oil Refinery closing at ₹164.30, up 0.49% from the previous day’s close. Volume increased further to 66,098 shares, reflecting sustained investor interest. The Sensex gained 0.21% to 35,413.94, but Gandhar Oil’s weekly gains of 9.64% far outpaced the benchmark’s 0.50% rise.

Technical indicators confirmed a mild bullish momentum, with weekly MACD bullish and Bollinger Bands bullish on both weekly and monthly charts. The RSI remained neutral, indicating no overbought conditions. Despite some bearish signals from daily moving averages and the weekly KST, the overall technical outlook suggested stabilisation and potential for further incremental gains.

Key Takeaways

Positive Signals: Gandhar Oil Refinery’s 9.64% weekly gain significantly outperformed the Sensex’s 0.50% rise, driven by a technical upgrade to Hold and strong quarterly earnings growth. The shift from a mildly bearish to a sideways and then mildly bullish technical momentum, supported by bullish weekly MACD and Bollinger Bands, indicates stabilising price action and renewed investor interest. The company’s low leverage and efficient capital utilisation further underpin its near-term financial strength.

Cautionary Notes: Despite recent gains, the stock’s daily moving averages remain mildly bearish, and some momentum indicators such as the weekly KST are still negative, suggesting potential short-term resistance. Long-term fundamentals show weak sales and operating profit growth, and institutional participation has declined, reflecting lingering concerns about growth prospects. The stock’s micro-cap status adds volatility risk, warranting careful monitoring of technical signals before larger commitments.

Conclusion

Gandhar Oil Refinery (India) Ltd’s performance over the week of 18 to 22 May 2026 reflects a cautious but encouraging turnaround. The upgrade to a Hold rating, combined with strong quarterly results and a shift in technical momentum, has propelled the stock to outperform the broader market. While the technical indicators suggest stabilisation and mild bullishness, mixed signals and fundamental challenges counsel prudence. Investors should continue to monitor upcoming financial disclosures and technical developments to assess whether this momentum can be sustained in the medium term.

Only Rs. 20,999 - Get MojoOne + Stock of the Week for 3 Years Get 71% Off →