Neogen Chemicals Ltd Faces Mixed Technical Signals Amid Bearish Momentum Shift

Price Movement and Market Context

On 10 Feb 2026, Neogen Chemicals closed at ₹1,330.45, down 1.78% from the previous close of ₹1,354.55. The intraday range was broad, with a low of ₹1,281.05 and a high of ₹1,368.85, reflecting heightened volatility. The stock remains well below its 52-week high of ₹2,088.50 but comfortably above its 52-week low of ₹978.00, indicating a wide trading band over the past year.

Comparatively, Neogen Chemicals has outperformed the Sensex over shorter time frames, delivering a 5.64% return over the past week against the Sensex’s 2.94%, and a robust 17.15% gain over the last month versus the Sensex’s modest 0.59%. Year-to-date, the stock has risen 12.37%, while the Sensex has declined by 1.36%. However, the longer-term picture is less favourable, with a 36.59% decline over the past year compared to the Sensex’s 7.97% gain, and a 5.99% return over three years lagging the Sensex’s 38.25%.

Technical Trend Shift: From Sideways to Mildly Bearish

Recent technical analysis reveals a shift in Neogen Chemicals’ trend from sideways to mildly bearish. This transition is underscored by daily moving averages that have turned mildly bearish, signalling potential downward pressure in the near term. The stock’s current price is below key daily moving averages, which often act as resistance levels in a bearish scenario.

On the weekly chart, the Moving Average Convergence Divergence (MACD) indicator remains mildly bullish, suggesting some underlying positive momentum. However, the monthly MACD has turned bearish, indicating that longer-term momentum is weakening. This divergence between weekly and monthly MACD readings highlights the stock’s uncertain directional bias.

RSI and Bollinger Bands: Conflicting Signals

The Relative Strength Index (RSI) on the weekly timeframe is neutral, providing no clear signal on momentum strength or weakness. Conversely, the monthly RSI is bullish, implying that the stock may be oversold on a longer-term basis and could be poised for a rebound.

Bollinger Bands add further complexity. Weekly Bollinger Bands suggest a mildly bullish stance, as the stock price is near the lower band but showing signs of stabilisation. In contrast, the monthly Bollinger Bands are mildly bearish, reflecting broader downward pressure over the past several months.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator presents a mixed picture. Weekly KST is mildly bullish, supporting short-term momentum, while the monthly KST is bearish, reinforcing the longer-term downtrend. This split suggests that while short-term traders may find opportunities, longer-term investors should exercise caution.

Dow Theory analysis shows no clear weekly trend, but a mildly bullish monthly trend, indicating that the broader market forces may still favour the stock over an extended horizon. Meanwhile, On-Balance Volume (OBV) is neutral on the weekly scale but bullish monthly, signalling that accumulation might be occurring despite recent price softness.

Mojo Score and Market Capitalisation Insights

Neogen Chemicals currently holds a Mojo Score of 24.0, categorised as a Strong Sell, a downgrade from its previous Sell rating on 9 Feb 2026. This reflects deteriorating technical and fundamental conditions as assessed by MarketsMOJO’s proprietary scoring system. The company’s market capitalisation grade stands at 3, indicating a mid-tier market cap within its sector.

The downgrade to Strong Sell underscores the caution warranted by investors, especially given the mixed technical signals and recent price weakness. The stock’s day change of -1.78% on 10 Feb 2026 further emphasises the prevailing bearish sentiment.

Investment Outlook and Comparative Performance

While Neogen Chemicals has demonstrated resilience in short-term returns relative to the Sensex, its longer-term underperformance and technical deterioration suggest a challenging environment ahead. Investors should weigh the mildly bullish weekly indicators against the bearish monthly signals and the Strong Sell Mojo Grade before considering exposure.

Given the stock’s current price of ₹1,330.45, well below its 52-week high, there may be value for contrarian investors if the monthly bullish RSI and OBV signals translate into a sustained recovery. However, the mildly bearish daily moving averages and monthly MACD caution against aggressive positioning.

Sector and Industry Context

Operating within the Specialty Chemicals sector, Neogen Chemicals contends with sector-specific volatility driven by raw material costs, regulatory changes, and global demand fluctuations. The sector has generally shown resilience, but individual stock performance varies widely based on company fundamentals and technical positioning.

Neogen’s mixed technical signals mirror the broader sector’s uneven momentum, where short-term bullishness often clashes with longer-term caution. Investors should monitor sector trends alongside company-specific developments to better time entries and exits.

Conclusion: A Cautious Approach Recommended

Neogen Chemicals Ltd’s recent technical parameter changes reveal a nuanced momentum shift. While weekly indicators such as MACD, KST, and OBV offer some bullish hints, monthly signals and daily moving averages suggest caution. The downgrade to a Strong Sell Mojo Grade further reinforces the need for prudence.

Investors should consider the stock’s relative outperformance over short periods against its longer-term underperformance and technical deterioration. Those with a higher risk tolerance might watch for confirmation of monthly bullish signals before initiating positions, while more conservative investors may prefer to await clearer trend stabilisation.

Overall, Neogen Chemicals presents a complex technical picture that demands careful analysis and disciplined risk management in the current market environment.

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