Technical Trend Evolution and Price Movement
As of 6 February 2026, Godawari Power & Ispat Ltd (stock code 761113) closed at ₹257.75, slightly down by 1.02% from the previous close of ₹260.40. The stock traded within a range of ₹253.95 to ₹260.00 during the day, maintaining proximity to its 52-week high of ₹290.00 while comfortably above its 52-week low of ₹145.55. This price action suggests a consolidation phase near the upper end of its annual trading band, signalling potential for further upward momentum.
The technical trend has upgraded from mildly bullish to bullish, supported by daily moving averages that continue to indicate positive momentum. The daily moving averages have been trending upwards, providing a solid foundation for the stock’s price stability and potential appreciation.
MACD and Momentum Indicators: A Mixed Picture
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced view. On a weekly basis, the MACD remains mildly bearish, indicating some short-term caution among traders. However, the monthly MACD has turned bullish, reflecting a longer-term positive momentum that could attract institutional interest. This divergence between weekly and monthly MACD readings suggests that while short-term volatility may persist, the broader trend favours accumulation.
Complementing this, the Know Sure Thing (KST) indicator also shows a similar pattern: mildly bearish on the weekly chart but bullish on the monthly timeframe. This reinforces the notion that the stock is in a transitional phase, with longer-term momentum gaining strength despite short-term fluctuations.
RSI and Bollinger Bands: Stability and Expansion
The Relative Strength Index (RSI) currently offers no definitive signal on both weekly and monthly charts, hovering in a neutral zone that neither indicates overbought nor oversold conditions. This neutrality suggests that the stock has room to move in either direction without immediate risk of a reversal due to extreme momentum.
Meanwhile, Bollinger Bands on both weekly and monthly timeframes are bullish, signalling expanding volatility with an upward bias. The stock price is trading near the upper band, which often indicates strength and the potential for continued gains, provided the momentum sustains.
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On-Balance Volume and Dow Theory Insights
On-Balance Volume (OBV) readings are bullish on both weekly and monthly charts, indicating that volume trends support the price advances. This suggests that buying interest is strong and that accumulation is underway, which is a positive sign for sustained price appreciation.
However, the Dow Theory does not currently indicate a clear trend on either weekly or monthly timeframes, reflecting some uncertainty in broader market confirmation. This lack of trend confirmation advises caution, as the stock may be susceptible to external market influences despite its internal technical strength.
Comparative Returns and Market Context
Godawari Power & Ispat Ltd has delivered impressive long-term returns relative to the broader Sensex index. Over the past year, the stock has surged by 40.08%, significantly outperforming the Sensex’s 6.44% gain. Over three and five years, the stock’s returns stand at 236.01% and 895.46% respectively, dwarfing the Sensex’s 36.94% and 64.22% gains. The ten-year return is particularly striking at 8,975.70%, compared to the Sensex’s 238.44%, underscoring the company’s exceptional growth trajectory within the iron and steel products sector.
Shorter-term returns, however, show some weakness. The stock declined by 0.15% over the past week and 5.93% over the past month, underperforming the Sensex’s 0.91% and 2.49% gains respectively. Year-to-date, the stock is down 3.10%, slightly worse than the Sensex’s 2.24% decline. These short-term setbacks may reflect sector-specific pressures or profit-taking after strong rallies.
Mojo Score and Rating Upgrade
MarketsMOJO has upgraded Godawari Power & Ispat Ltd’s Mojo Grade from Sell to Hold as of 12 August 2025, reflecting improved technical and fundamental outlooks. The current Mojo Score stands at 65.0, signalling moderate confidence in the stock’s prospects. The Market Cap Grade is 3, indicating a mid-tier market capitalisation relative to peers. This upgrade aligns with the technical trend shift to bullish and the positive monthly momentum indicators.
Investment Implications and Outlook
Investors should note that while the technical momentum has improved, the mixed signals from weekly MACD and KST indicators counsel prudence in the short term. The neutral RSI and absence of Dow Theory confirmation suggest that the stock may experience volatility before establishing a sustained uptrend.
Long-term investors may find the stock’s strong historical returns and bullish monthly indicators encouraging, particularly given the iron and steel sector’s cyclical recovery prospects. The bullish Bollinger Bands and OBV readings support the case for accumulation, but monitoring daily moving averages and volume trends will be crucial to confirm breakout strength.
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Sector and Market Considerations
The iron and steel products sector remains sensitive to global commodity prices, demand fluctuations, and regulatory changes. Godawari Power’s technical improvement comes amid a backdrop of stabilising steel prices and improving infrastructure demand, which could provide tailwinds for earnings growth.
However, investors should remain vigilant of potential headwinds such as raw material cost inflation and geopolitical uncertainties that could impact sector performance. The stock’s technical indicators suggest readiness for a bullish phase, but external factors will play a critical role in sustaining momentum.
Summary
Godawari Power & Ispat Ltd’s technical parameters have shifted favourably, with a bullish trend emerging from a previously mildly bullish stance. Monthly MACD and KST indicators support a positive outlook, while daily moving averages and Bollinger Bands reinforce upward momentum. Despite some short-term bearish signals on weekly charts and neutral RSI readings, the stock’s strong long-term returns and upgraded Mojo Grade to Hold provide a compelling case for cautious optimism.
Investors should weigh these technical signals alongside sector fundamentals and broader market conditions to make informed decisions. Continued monitoring of volume trends and moving averages will be essential to confirm the sustainability of this bullish momentum.
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