MSP Steel & Power Ltd Gains 2.81%: 5 Key Factors Driving the Weekly Momentum

2 February 2026: Weak Start Amid Broader Market Decline

MSP Steel & Power Ltd began the week on a subdued note, closing at Rs.29.07, down 1.59% from the previous Friday’s close of Rs.29.54. This decline was in line with the broader market, as the Sensex fell 1.03% to 35,814.09. The stock’s volume was moderate at 15,798 shares, reflecting cautious investor sentiment amid a volatile market environment.

3 February 2026: Sharp Rebound and Upper Circuit Surge

The stock reversed its early-week losses with a robust performance on 3 February, surging 5.54% to close at Rs.30.68. Intraday, MSP Steel & Power Ltd hit a high of Rs.31.97, marking a 7.64% gain from the previous close and triggering the upper circuit limit due to strong buying pressure. This rally outpaced the Sensex’s 2.63% gain and the Iron & Steel Products sector’s 2.98% advance, signalling distinct strength within its industry.

The day’s trading was characterised by a significant gap up of 5.88% at the open, reflecting renewed bullish sentiment after two days of decline. The stock’s elevated volatility and increased delivery volumes suggested growing investor interest and a potential short-term trend reversal. Despite this, the stock remained below its longer-term moving averages, indicating that the rally was occurring within a broader context of technical resistance.

4 February 2026: Rating Upgrade Spurs Further Gains

Following the strong price action, MarketsMOJO upgraded MSP Steel & Power Ltd’s rating from 'Strong Sell' to 'Sell' on 3 February, citing technical improvements despite ongoing fundamental concerns. The stock responded positively, gaining 5.92% to close at Rs.30.79 on 4 February. This marked a shift from a mildly bearish to a sideways technical trend, with daily moving averages turning mildly bullish.

However, the upgrade was tempered by persistent challenges including flat quarterly financial results, weak capital efficiency, high leverage with a Debt to EBITDA ratio of 6.07, and substantial promoter share pledging at 75.95%. These factors continue to weigh on the stock’s medium-term outlook despite the technical stabilisation.

5 February 2026: Profit Taking Leads to Price Correction

After the strong gains earlier in the week, MSP Steel & Power Ltd experienced a pullback on 5 February, closing at Rs.30.75, down 2.81% on the day. This retreat coincided with a 0.53% decline in the Sensex, suggesting some profit booking amid a mixed market environment. The stock’s volume was relatively low at 6,758 shares, indicating subdued trading interest during the correction.

6 February 2026: Week Ends with Modest Decline

The week concluded with MSP Steel & Power Ltd closing at Rs.30.37, down 1.24% on the day but still posting a weekly gain of 2.81%. The Sensex closed slightly higher by 0.10% at 36,730.20. The stock’s volume increased to 14,479 shares, reflecting renewed activity as investors digested the week’s developments and the recent rating upgrade.

Key Takeaways

Positive Signals: The stock outperformed the Sensex with a weekly gain of 2.81% versus the index’s 1.51%, driven by a strong intraday surge and upper circuit hit on 3 February. The rating upgrade from Strong Sell to Sell reflects technical stabilisation and a shift to a sideways trend, supported by mildly bullish daily moving averages and a bullish monthly RSI.

Cautionary Factors: Despite technical improvements, MSP Steel & Power Ltd faces significant fundamental headwinds including flat quarterly earnings, weak capital efficiency (ROCE at 5.71%), high leverage (Debt to EBITDA of 6.07), and substantial promoter share pledging at 75.95%. The stock remains below key longer-term moving averages, and weekly and monthly technical indicators such as MACD and Bollinger Bands remain bearish or mildly bearish, signalling ongoing uncertainty.

Volatility and Liquidity: The stock exhibited high volatility and beta characteristics, with sharp price swings and moderate trading volumes. The upper circuit event on 3 February indicated strong buying interest but also imposed price limits that may lead to subsequent profit booking or price corrections.

Conclusion

MSP Steel & Power Ltd’s week was marked by a notable rebound and technical stabilisation, culminating in a 2.81% weekly gain that outpaced the Sensex. The sharp intraday surge and upper circuit hit on 3 February highlighted strong short-term momentum, supported by a rating upgrade reflecting improved technical indicators. However, persistent fundamental weaknesses, including flat earnings, high leverage, and promoter pledging, continue to cloud the stock’s medium-term outlook.

Investors should balance the recent technical gains against the underlying financial challenges and mixed technical signals across weekly and monthly timeframes. The stock’s high volatility and beta suggest that price swings may continue, requiring careful monitoring of momentum indicators and volume trends. Overall, MSP Steel & Power Ltd remains a stock in transition, with cautious optimism tempered by structural risks.

Unlock special upgrade rates for a limited period. Start Saving Now →