Gujarat Natural Resources Ltd Falls 4.20%: Technical Shifts and Financial Momentum Define Week

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Gujarat Natural Resources Ltd experienced a challenging week on the bourses, with its stock price declining by 4.20% from ₹105.85 to ₹101.40, underperforming the Sensex which fell 0.96% over the same period. Despite this short-term weakness, the company saw a significant upgrade in its technical and fundamental outlook, moving from a 'Sell' to a 'Hold' rating by MarketsMojo, reflecting improved financial momentum and bullish technical indicators amid mixed signals from various technical tools.

Key Events This Week

23 Feb: Stock opens at ₹104.40, down 1.37% amid Sensex gains

24 Feb: Further decline to ₹102.60, MarketsMOJO upgrades rating to Hold

25 Feb: Slight recovery to ₹102.85, bullish technical shift noted

26 Feb: Drop to ₹101.30, mixed technical signals emerge

27 Feb: Close at ₹101.40, technical momentum shifts to mildly bullish

Week Open
Rs.105.85
Week Close
Rs.101.40
-4.20%
Week High
Rs.105.85
vs Sensex
-3.24%

23 February 2026: Stock Opens Lower Despite Sensex Gains

Gujarat Natural Resources Ltd began the week on a subdued note, closing at ₹104.40, down 1.37% from the previous Friday’s close of ₹105.85. This decline contrasted with the Sensex’s positive performance, which rose 0.39% to 36,817.86. The stock’s volume was moderate at 60,708 shares, reflecting cautious investor sentiment amid broader market optimism.

24 February 2026: MarketsMOJO Upgrades Rating to Hold

The stock continued its downward trajectory, falling 1.72% to ₹102.60 on increased volume of 104,588 shares. This day marked a pivotal development as MarketsMOJO upgraded Gujarat Natural Resources Ltd’s rating from 'Sell' to 'Hold'. The upgrade was driven by improved technical indicators, including a bullish Moving Average Convergence Divergence (MACD) on weekly and monthly charts, and strong quarterly financial results showing a 2,427.27% surge in operating profit for Q3 FY25-26. Despite the price dip, the technical momentum was deemed positive, signalling a potential turnaround.

25 February 2026: Slight Recovery and Bullish Technical Shift

On 25 February, the stock edged up marginally by 0.24% to ₹102.85, supported by a significant volume spike to 179,731 shares. This day’s trading reflected a bullish shift in technical momentum, with daily moving averages turning positive and MACD indicators maintaining a bullish stance on longer timeframes. The MarketsMOJO Mojo Score improved to 56.0, reinforcing the upgraded 'Hold' rating. The stock’s long-term returns remain exceptional, with a 426.15% gain over the past year, vastly outperforming the Sensex’s 10.44% rise.

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26 February 2026: Price Declines Amid Mixed Technical Signals

The stock price declined again by 1.51% to ₹101.30 on relatively low volume of 32,635 shares. Technical indicators began to show a more nuanced picture: while the monthly MACD remained bullish, the weekly MACD turned mildly bearish. Bollinger Bands on weekly and monthly charts stayed mildly bullish, but the Know Sure Thing (KST) indicator showed a bearish weekly reading contrasting with a bullish monthly trend. These mixed signals suggested a potential consolidation phase after the recent rally.

27 February 2026: Mildly Bullish Momentum Despite Underperformance

Closing the week at ₹101.40, up 0.10% from the previous day, Gujarat Natural Resources Ltd showed signs of stabilisation. The stock traded within a range of ₹100.50 to ₹103.00, remaining well below its 52-week high of ₹113.96 but comfortably above its 52-week low of ₹19.27. The technical momentum shifted from bullish to mildly bullish, with daily moving averages still positive but weekly MACD and KST indicators mildly bearish. The Sensex fell 1.16% to 36,322.56, while the stock’s weekly return was -4.20%, indicating short-term underperformance but sustained longer-term strength.

Date Stock Price Day Change Sensex Day Change
2026-02-23 Rs.104.40 -1.37% 36,817.86 +0.39%
2026-02-24 Rs.102.60 -1.72% 36,530.09 -0.78%
2026-02-25 Rs.102.85 +0.24% 36,679.75 +0.41%
2026-02-26 Rs.101.30 -1.51% 36,748.49 +0.19%
2026-02-27 Rs.101.40 +0.10% 36,322.56 -1.16%

Key Takeaways

Positive Signals: The MarketsMOJO upgrade from 'Sell' to 'Hold' reflects improved technical momentum and strong quarterly financial results, including a remarkable 2,427.27% increase in operating profit for Q3 FY25-26. The stock’s long-term returns remain exceptional, with a 426.15% gain over the past year, far outpacing the Sensex. Bullish MACD indicators on monthly charts and daily moving averages support a constructive medium-term outlook.

Cautionary Notes: Despite the upgrade, the stock underperformed the Sensex this week, declining 4.20% amid mixed technical signals. Weekly MACD and KST indicators turned mildly bearish, suggesting potential short-term consolidation or correction. The company’s valuation remains elevated with a P/B ratio of 7.3 and modest ROE of 0.9%, indicating limited capital efficiency. Absence of domestic mutual fund holdings may signal institutional caution.

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Conclusion

Gujarat Natural Resources Ltd’s week was marked by a notable technical and fundamental upgrade, signalling a shift from a sell to a hold stance amid improving financial momentum. However, the stock’s price performance lagged the broader market, reflecting mixed technical signals and valuation concerns. The mildly bullish monthly indicators suggest the longer-term uptrend remains intact, but short-term caution is warranted given weekly bearish signals. Investors should monitor upcoming quarterly results and sector developments closely to gauge the sustainability of this momentum. The stock’s exceptional long-term returns underscore its growth potential, yet its elevated valuation and lack of institutional backing advise a measured approach.

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