Key Events This Week
2 Feb: Q2 FY26 results reveal margin pressure despite revenue growth
3 Feb: Mixed technical signals emerge amid price momentum shift
4 Feb: Technical downgrade signals bearish momentum
6 Feb: Week closes with a 4.53% decline at Rs.31,976.60
2 February 2026: Q2 FY26 Results Highlight Margin Pressure
Honeywell Automation India Ltd kicked off the week with the release of its Q2 FY26 financial results. While the company reported revenue growth, margin pressures persisted, dampening investor enthusiasm. The stock closed at Rs.33,663.10, up 0.51% on the day, outperforming the Sensex which declined 1.03% to 35,814.09. The positive price movement reflected initial optimism about top-line expansion, but concerns over profitability weighed on sentiment.
3 February 2026: Mixed Technical Signals Amid Price Momentum Shift
The following day, Honeywell Automation’s stock price rose modestly by 0.30% to Rs.33,762.85, continuing to outperform the Sensex’s 2.63% gain to 36,755.96. Despite this, technical indicators painted a complex picture. The stock exhibited a shift from bearish to mildly bearish momentum, with moving averages and MACD suggesting cautious optimism tempered by resistance levels. The Relative Strength Index (RSI) remained neutral, indicating neither overbought nor oversold conditions. This nuanced technical backdrop suggested that while short-term price gains were possible, sustained upward momentum was uncertain.
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4 February 2026: Technical Downgrade Signals Bearish Momentum
On 4 February, the stock faced a technical downgrade, with momentum indicators shifting from mildly bearish to outright bearish. The stock closed at Rs.33,005.85, down 2.24% on the day, despite the Sensex rising 0.37% to 36,890.21. Key technical oscillators such as MACD and Know Sure Thing (KST) confirmed sustained downward momentum, while moving averages remained resistance points. The Relative Strength Index stayed neutral, indicating no immediate oversold conditions, but the overall technical profile suggested increased selling pressure. This downgrade coincided with a Mojo Score of 30.0, categorised as a Sell, reflecting deteriorating fundamentals and technical outlook.
5 February 2026: Continued Decline Amid Weak Volume
The bearish trend extended into 5 February, with the stock falling 1.50% to Rs.32,510.65 on relatively low volume. The Sensex also declined 0.53% to 36,695.11, but Honeywell Automation’s sharper drop underscored its vulnerability. Technical indicators remained negative, with the stock trading below key moving averages and momentum oscillators confirming weakness. The lack of strong volume support suggested limited buying interest, reinforcing the cautious stance.
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6 February 2026: Week Closes with Further Decline
The week concluded with Honeywell Automation’s stock price dropping 1.64% to Rs.31,976.60, marking a cumulative weekly decline of 4.53%. This contrasted with the Sensex’s modest 0.10% gain to 36,730.20. The stock’s volume rebounded somewhat but remained below early-week levels, reflecting continued investor caution. Technical indicators remained bearish, with no immediate signs of reversal. The stock’s price remains well below its 52-week high of Rs.41,599.80, highlighting significant downside risk amid ongoing margin pressures and subdued momentum.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.33,663.10 | +0.51% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.33,762.85 | +0.30% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.33,005.85 | -2.24% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.32,510.65 | -1.50% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.31,976.60 | -1.64% | 36,730.20 | +0.10% |
Key Takeaways
Margin pressures persist: Despite revenue growth reported on 2 February, profitability challenges remain a key concern, limiting upside potential.
Technical momentum deteriorates: The stock’s technical indicators shifted from mildly bearish to bearish midweek, with MACD, KST, and moving averages signalling increased selling pressure.
Underperformance vs Sensex: Honeywell Automation declined 4.53% over the week while the Sensex gained 1.51%, highlighting relative weakness amid broader market strength.
Volume and volatility: Trading volumes fluctuated, with low activity on down days suggesting cautious investor sentiment and limited conviction in rallies.
Mojo Score downgrade: The stock’s Mojo Score of 30.0 and Sell rating reflect deteriorating fundamentals and technical outlook, reinforcing a cautious stance.
Conclusion
Honeywell Automation India Ltd’s week was marked by a clear decline in share price amid persistent margin pressures and a deteriorating technical profile. While early-week revenue growth offered some optimism, the subsequent technical downgrade and bearish momentum indicators outweighed positive signals. The stock’s underperformance relative to the Sensex underscores the challenges it faces in the current market environment. Investors should remain attentive to evolving technical signals and fundamental developments, particularly margin trends and volume patterns, to assess potential shifts in the stock’s trajectory. For now, the prevailing outlook suggests consolidation with a bearish bias, warranting caution in positioning.
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