Gandhar Oil Refinery Shares Shift to Sideways Momentum Amid Mixed Technical Signals

Recent Price Movement and Market Context

On 5 Feb 2026, Gandhar Oil Refinery’s share price closed at ₹150.30, up from the previous close of ₹145.50, marking a 3.3% increase. The stock traded within a range of ₹144.60 to ₹153.10 during the day, reflecting heightened volatility. Despite this uptick, the stock remains significantly below its 52-week high of ₹184.25 and above its 52-week low of ₹120.60, indicating a broad trading band over the past year.

Comparatively, Gandhar Oil’s returns have lagged the broader Sensex index over multiple time horizons. The stock posted a negative 1.92% return over the past week against the Sensex’s 1.79% gain, and a 14.51% decline over the last year while the Sensex appreciated by 6.66%. This underperformance highlights the challenges faced by the company amid sectoral and macroeconomic headwinds.

Technical Trend Evolution: From Mildly Bearish to Sideways

The technical trend for Gandhar Oil has shifted from mildly bearish to a sideways pattern, signalling a potential pause in the downtrend. This transition suggests that while the stock is not yet in a confirmed uptrend, the selling pressure has eased, and consolidation may be underway. Such sideways movement often precedes a decisive breakout or breakdown, making the current phase critical for technical traders.

MACD Analysis: Weekly Mild Bullishness Contrasts Monthly Ambiguity

The Moving Average Convergence Divergence (MACD) indicator on the weekly chart has turned mildly bullish, indicating a nascent positive momentum. This suggests that the shorter-term moving average is beginning to cross above the longer-term average, a classic buy signal for momentum traders. However, the monthly MACD remains inconclusive, reflecting uncertainty in the longer-term trend. This divergence between weekly and monthly MACD readings underscores the stock’s current indecision and the need for cautious optimism.

RSI Signals: Neutral Territory on Both Weekly and Monthly Frames

The Relative Strength Index (RSI) on both weekly and monthly charts shows no clear signal, hovering in neutral zones. This indicates that the stock is neither overbought nor oversold, reinforcing the sideways trend narrative. The absence of extreme RSI readings suggests that the stock has room to move in either direction, depending on forthcoming catalysts.

Bollinger Bands: Weekly Bullishness Meets Monthly Mild Bearishness

Bollinger Bands on the weekly timeframe are signalling bullishness, with the price approaching the upper band, often interpreted as a sign of upward momentum. Conversely, the monthly Bollinger Bands remain mildly bearish, reflecting longer-term pressure and volatility. This contrast highlights the stock’s short-term strength amid lingering monthly weakness, a pattern that traders should monitor closely for confirmation of trend direction.

Moving Averages: Daily Chart Remains Mildly Bearish

On the daily chart, moving averages continue to suggest a mildly bearish stance. The stock price remains near or slightly below key short-term moving averages, indicating resistance to sustained upward moves. This technical resistance could limit near-term gains unless accompanied by stronger volume or positive fundamental news.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator on the weekly chart is bullish, supporting the view of improving momentum. Meanwhile, Dow Theory assessments show a mildly bearish weekly trend but a mildly bullish monthly trend, further emphasising the mixed signals across timeframes. On the volume front, the On-Balance Volume (OBV) indicator is bullish weekly but shows no clear trend monthly, suggesting that buying interest is present but not yet sustained over the longer term.

Mojo Score and Grade Update: Downgrade Reflects Caution

MarketsMOJO’s proprietary scoring system currently assigns Gandhar Oil Refinery a Mojo Score of 48.0, categorising it as a 'Sell' with a Market Cap Grade of 3. This represents a downgrade from a previous 'Hold' rating as of 1 Feb 2026, reflecting deteriorating technical and fundamental outlooks. The downgrade signals increased caution among analysts, likely influenced by the stock’s underperformance relative to the Sensex and mixed technical signals.

Comparative Performance and Sectoral Context

Within the oil sector, Gandhar Oil’s sideways to mildly bearish technical stance contrasts with some peers showing stronger momentum. The stock’s year-to-date return of -2.62% underperforms the Sensex’s -1.65%, while its one-month return of -0.76% is better than the Sensex’s -2.27%, indicating some short-term resilience. However, the longer-term one-year return of -14.51% versus the Sensex’s 6.66% gain highlights persistent challenges.

Investor Implications: Navigating Mixed Signals

For investors, the current technical landscape suggests a cautious approach. The weekly bullish MACD and KST indicators offer some optimism for a potential recovery or consolidation phase. However, the lack of strong confirmation from monthly indicators and the mildly bearish daily moving averages imply that any upward momentum may be limited or short-lived without fundamental catalysts.

Traders may consider monitoring key support levels near ₹145 and resistance around ₹153 to gauge breakout or breakdown potential. The neutral RSI readings suggest that the stock is poised for directional movement but requires confirmation from volume and price action.

Outlook and Conclusion

Gandhar Oil Refinery’s technical parameters reveal a stock at a crossroads. The shift from a mildly bearish to sideways trend, combined with weekly bullish momentum indicators, suggests a tentative stabilisation. Yet, the absence of strong monthly confirmation and the daily moving averages’ mild bearishness caution against premature optimism.

Investors should weigh these mixed signals carefully, considering both the technical nuances and the broader sectoral environment. Given the downgrade to a 'Sell' rating and the stock’s underperformance relative to the Sensex, a defensive stance or selective exposure may be prudent until clearer directional cues emerge.

Continued monitoring of momentum indicators, volume trends, and price action will be essential to identify a sustainable trend reversal or further downside risk in the coming weeks.

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