Khaitan Chemicals & Fertilizers Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Trend Shift: From Mildly Bearish to Bearish

Khaitan Chemicals & Fertilizers Ltd (stock code 511670) has seen its technical trend deteriorate from mildly bearish to outright bearish, signalling increased selling pressure. The stock closed at ₹62.00 on 13 Feb 2026, down 5.96% from the previous close of ₹65.93. This decline comes amid a broader weakening of momentum indicators, with the weekly MACD firmly bearish and the monthly MACD mildly bearish. The Moving Average Convergence Divergence (MACD) is a key momentum oscillator that measures the difference between short-term and long-term moving averages; its bearish reading indicates that short-term momentum is lagging behind longer-term trends, a classic sign of weakening price strength.

Further compounding the negative outlook, the daily moving averages have turned bearish, with the stock price trading below key averages such as the 50-day and 200-day moving averages. This technical configuration often signals a downtrend, as it reflects sustained selling pressure over both short and long horizons.

RSI and Bollinger Bands: Mixed Signals but Leaning Bearish

The Relative Strength Index (RSI), a momentum oscillator that measures overbought or oversold conditions, currently shows no clear signal on both weekly and monthly charts. This neutral RSI reading suggests that while the stock is not yet oversold, it lacks the upward momentum needed to reverse the bearish trend.

Meanwhile, Bollinger Bands, which measure price volatility and potential reversal points, are signalling bearish conditions on both weekly and monthly timeframes. The stock price is hugging the lower band, indicating sustained downward pressure and increased volatility. This pattern often precedes further declines unless a strong reversal catalyst emerges.

Other Technical Indicators: KST, OBV, and Dow Theory

The Know Sure Thing (KST) indicator presents a mixed picture. On a weekly basis, it remains bearish, reinforcing the short-term downtrend. However, the monthly KST is bullish, suggesting that longer-term momentum may still hold some upside potential. This divergence between short- and long-term momentum indicators often signals a period of consolidation or volatility ahead.

On-Balance Volume (OBV), which tracks volume flow to confirm price trends, is mildly bullish on the weekly chart but shows no trend on the monthly scale. This mild bullishness in volume could indicate some accumulation by investors at current price levels, though it is insufficient to offset the broader bearish technical signals.

Dow Theory, a classical method of trend analysis, shows no definitive trend on either weekly or monthly charts. This lack of confirmation from Dow Theory adds to the uncertainty surrounding the stock’s near-term direction.

Price Performance Relative to Sensex

Khaitan Chemicals & Fertilizers Ltd’s recent price performance has lagged significantly behind the benchmark Sensex index. Over the past week, the stock declined by 6.49%, while the Sensex gained 0.43%. The one-month return for the stock is down 11.71%, compared to a marginal Sensex decline of 0.24%. Year-to-date, the stock has fallen 21.49%, sharply underperforming the Sensex’s 1.81% loss.

Despite this recent weakness, the stock’s longer-term returns remain impressive. Over five years, Khaitan Chemicals & Fertilizers Ltd has delivered a cumulative return of 139.85%, more than double the Sensex’s 62.34% gain. Over a decade, the stock’s return of 665.43% far outpaces the Sensex’s 264.02%, reflecting strong historical growth in the fertilizers sector and the company’s market position.

Valuation and Market Capitalisation Context

The company holds a Market Cap Grade of 4, indicating a mid-sized market capitalisation relative to its peers. However, its Mojo Score of 37.0 and a recent downgrade from Hold to Sell on 5 Jan 2026 reflect deteriorating fundamentals and technical outlook. This downgrade signals that the stock currently carries elevated risk and may underperform in the near term.

Summary of Technical Ratings

To summarise the technical landscape:

• MACD: Weekly Bearish, Monthly Mildly Bearish
• RSI: Neutral (No Signal) on Weekly and Monthly
• Bollinger Bands: Bearish on Weekly and Monthly
• Moving Averages: Daily Bearish
• KST: Weekly Bearish, Monthly Bullish
• Dow Theory: No Trend on Weekly and Monthly
• OBV: Weekly Mildly Bullish, Monthly No Trend

These indicators collectively point to a prevailing bearish momentum in the short term, with some longer-term indicators suggesting potential for recovery or consolidation. Investors should exercise caution and monitor for confirmation of trend reversals before considering fresh positions.

Investor Takeaway and Outlook

Khaitan Chemicals & Fertilizers Ltd’s technical indicators suggest that the stock is currently in a bearish phase, with momentum indicators and moving averages pointing to further downside risk. The recent downgrade to a Sell rating by MarketsMOJO underscores this cautious stance. While the stock’s long-term fundamentals and historical returns remain strong, the near-term technical outlook advises prudence.

Investors should watch for potential support near the 52-week low of ₹44.37, which could act as a floor if selling pressure intensifies. Conversely, a sustained move above the 50-day and 200-day moving averages would be required to signal a reversal of the current downtrend. Until then, the technical landscape favours a defensive approach, with consideration given to alternative stocks offering stronger momentum and more favourable technical setups.

Given the mixed signals from longer-term indicators such as the monthly KST and mild OBV bullishness, a period of consolidation or volatility is likely before a clear directional trend emerges. Active monitoring of volume patterns and momentum oscillators will be crucial for timely decision-making.

Sector Context

The fertilisers sector has faced headwinds recently due to fluctuating input costs and regulatory pressures. Khaitan Chemicals & Fertilizers Ltd’s technical weakness may partly reflect these broader sector challenges. Investors should consider sectoral trends alongside company-specific technicals when evaluating exposure to this space.

In conclusion, while Khaitan Chemicals & Fertilizers Ltd boasts strong long-term returns and market presence, its current technical parameters caution against aggressive buying. A measured approach, supported by ongoing technical analysis and sector monitoring, is advisable for investors navigating this stock’s evolving momentum.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →