HEG Ltd Declines 1.32% Despite Institutional Interest and Technical Momentum Shift

Strong Start to the Week on 9 and 10 February

HEG Ltd began the week on a positive note, opening at Rs.545.55 on 9 February 2026, a 2.19% gain from the previous close of Rs.533.85. This outpaced the Sensex’s 1.04% rise to 37,113.23, signalling early bullish momentum. The following day, the stock extended gains to Rs.561.20, up 2.87%, while the Sensex advanced modestly by 0.25%. These gains were supported by steady volumes of 71,818 and 68,145 shares respectively, reflecting investor confidence amid a broadly positive market backdrop.

Volatility and Institutional Interest Drive Sharp Decline on 11 February

On 11 February 2026, HEG Ltd experienced a dramatic reversal, closing at Rs.530.75, down 5.43% from the prior day’s close of Rs.561.20. This sharp decline occurred despite the stock being among the most actively traded by value, with a staggering volume of 1,521,576 shares and a traded value of ₹361.00 crores. The stock opened at Rs.594.00, a 5.94% gap-up from the previous close, and touched an intraday high of Rs.600.00, up 7.01%, before retreating sharply due to profit-booking and volatile trading conditions.

Institutional participation was significant, with delivery volumes on 10 February rising 15.66% above the five-day average, indicating strong accumulation despite the intraday price swings. The stock’s price remained above its 5-day, 20-day, 100-day, and 200-day moving averages, signalling a positive medium- to long-term trend, although it traded below the 50-day moving average, suggesting near-term resistance. Notably, HEG outperformed its sector, which declined 2.08%, and the Sensex, which was virtually flat, highlighting relative resilience amid sector weakness.

Record Quarterly Profit Announcement Reinforces Fundamentals

Also on 11 February, HEG Ltd reported a record quarterly profit for Q3 FY26, driven by a strong recovery in demand for graphite electrodes. This fundamental strength underpinned the stock’s elevated trading volumes and institutional interest, despite the volatile price action. The robust earnings performance aligns with the recent upgrade of HEG’s Mojo Grade to a Buy rating with a score of 70.0, reflecting improved confidence in the company’s growth prospects and sector positioning.

Technical Momentum Shifts Amid Market Volatility on 12 and 13 February

Following the sharp decline, HEG Ltd’s technical momentum shifted to a mildly bullish stance amid ongoing market volatility. On 12 February, the stock marginally recovered to Rs.532.10 (+0.25%) before closing the week at Rs.526.80 (-1.00%) on 13 February, as the Sensex declined 1.40% to 36,532.48. The stock traded within a wide range of Rs.523.30 to Rs.598.50 during the week, well below its 52-week high of Rs.672.20 but comfortably above the 52-week low of Rs.332.20.

Technical indicators present a mixed picture: the weekly MACD is mildly bearish, while the monthly MACD remains bullish, suggesting short-term caution but longer-term strength. The RSI remains neutral, indicating consolidation rather than a decisive trend. Bollinger Bands show weekly bearishness but monthly mild bullishness, reinforcing the notion of a transitional phase. Moving averages are mildly bullish, with short-term averages slightly above longer-term ones, though the recent price drop tempers optimism.

Volume-based indicators such as On-Balance Volume (OBV) are bullish on weekly and monthly charts, signalling accumulation despite price softness. The KST oscillator is mildly bearish, and Dow Theory assessments suggest an overall upward phase with caution. Investors are advised to monitor price stability above Rs.540 and watch for a break above Rs.598.50 to confirm momentum resumption, while a fall below Rs.523.30 could indicate further downside risk.

Daily Price Performance Compared to Sensex

Key Takeaways

Positive Signals: HEG Ltd demonstrated strong institutional interest and high-value trading on 11 February, supported by a record quarterly profit announcement. The stock’s position above multiple moving averages and a recent Mojo Grade upgrade to Buy with a score of 70.0 reflect underlying fundamental strength and medium- to long-term optimism. Volume indicators such as OBV suggest accumulation despite short-term price weakness.

Cautionary Signals: The week’s overall price decline of 1.32% underperformed the Sensex’s 0.54% fall, with significant intraday volatility and a sharp 5.43% drop on 11 February. Technical momentum shifted to mildly bullish with mixed signals from MACD, RSI, and Bollinger Bands, indicating a consolidation phase rather than a clear trend continuation. The stock’s trading below the 50-day moving average and recent price softness warrant close monitoring for confirmation of recovery or further downside risk.

Conclusion

HEG Ltd’s week was characterised by a volatile price trajectory amid strong institutional participation and a robust earnings backdrop. While the stock showed resilience relative to its sector and maintained a positive medium-term technical profile, short-term price weakness and mixed momentum indicators suggest a cautious stance. Investors should watch for stabilisation above key support levels and confirmation of renewed upward momentum before considering more assertive positions. The company’s fundamental upgrade and sector dynamics continue to provide a solid foundation amid a complex market environment.

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