NESCO Ltd Technical Momentum Shifts Amid Bearish Signals

Technical Trend Overview and Price Movement

NESCO’s current market price stands at ₹1,134.85, down from the previous close of ₹1,171.90, reflecting a day change of -3.16%. The stock’s 52-week high is ₹1,638.85, while the 52-week low is ₹841.95, indicating a wide trading range over the past year. Today’s intraday range was between ₹1,122.00 and ₹1,171.85, underscoring heightened volatility.

The technical trend has shifted from mildly bearish to outright bearish, signalling increased selling pressure. This shift is corroborated by multiple technical indicators, which collectively suggest a weakening price momentum in the near term.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly timeframe and mildly bearish on the monthly chart. This divergence suggests that while short-term momentum is weakening, the longer-term trend is still under pressure but less severe. The bearish weekly MACD indicates that the stock’s recent price declines are supported by declining momentum, which could lead to further downside if the trend persists.

Meanwhile, the Relative Strength Index (RSI) shows no clear signal on both weekly and monthly timeframes, hovering in a neutral zone. This lack of extreme RSI readings implies that the stock is neither oversold nor overbought, leaving room for further directional movement based on other technical factors.

Moving Averages and Bollinger Bands Analysis

Daily moving averages are firmly bearish, with the stock trading below key averages such as the 50-day and 200-day moving averages. This positioning typically signals a downtrend, as sellers dominate the market. The Bollinger Bands present a mixed picture: weekly bands are bearish, indicating price pressure towards the lower band, while monthly bands are mildly bullish, suggesting some longer-term support may exist.

This divergence between weekly and monthly Bollinger Bands highlights the complexity of the current technical setup, where short-term weakness contrasts with tentative longer-term stability.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator presents a contrasting view: bearish on the weekly timeframe but bullish on the monthly chart. This suggests that while short-term momentum is negative, there may be underlying strength in the longer-term trend that investors should monitor closely.

Dow Theory assessments align with the broader bearish sentiment, showing a mildly bearish trend on the weekly chart and no clear trend on the monthly timeframe. This ambiguity reflects the current market indecision surrounding NESCO’s price direction.

On-Balance Volume (OBV) analysis further supports the bearish case on a weekly basis, indicating that volume trends are not favouring buyers. The monthly OBV shows no definitive trend, reinforcing the notion of short-term selling pressure without a confirmed long-term directional bias.

Comparative Returns and Market Context

Despite the recent technical deterioration, NESCO Ltd has delivered impressive returns over longer horizons. Year-to-date, the stock has declined by 7.48%, underperforming the Sensex’s 2.24% drop. Over one month, the stock fell 9.48%, compared to the Sensex’s 2.49% decline. However, over one year, NESCO outperformed the benchmark with a 15.21% gain versus Sensex’s 6.44%.

Longer-term returns are even more compelling: a three-year return of 97.86% compared to Sensex’s 36.94%, a five-year return of 88.84% against Sensex’s 64.22%, and a remarkable ten-year return of 245.99% versus Sensex’s 238.44%. These figures highlight the company’s strong fundamental growth despite recent technical setbacks.

Mojo Score and Grade Revision

MarketsMOJO’s proprietary scoring system has downgraded NESCO Ltd’s Mojo Grade from Sell to Strong Sell as of 1 February 2026, reflecting the deteriorating technical outlook. The current Mojo Score stands at 27.0, signalling significant caution for investors. The Market Cap Grade remains low at 3, indicating limited market capitalisation strength relative to peers.

This downgrade is consistent with the bearish technical signals and recent price weakness, suggesting that investors should exercise prudence and closely monitor further developments.

Investor Implications and Outlook

For investors, the current technical landscape suggests caution. The bearish signals across multiple indicators, including MACD, moving averages, and OBV, point to potential further downside in the near term. The absence of strong RSI signals means the stock is not yet oversold, leaving room for additional price declines before a technical rebound might occur.

However, the mixed signals from monthly indicators such as Bollinger Bands and KST imply that longer-term investors should not discount the possibility of a stabilisation or recovery if fundamental factors improve or broader market conditions turn favourable.

Given the stock’s strong historical returns and market position within the Diversified Commercial Services sector, a strategic approach combining technical monitoring with fundamental analysis is advisable. Investors may consider waiting for confirmation of trend reversal signals before initiating new positions or adding to existing holdings.

Summary

NESCO Ltd’s recent technical parameter changes reveal a shift towards bearish momentum, with key indicators signalling increased selling pressure. The downgrade to a Strong Sell Mojo Grade reflects this negative outlook, despite the company’s robust long-term performance relative to the Sensex. Investors should weigh the short-term technical risks against the stock’s historical growth and consider peer comparisons to identify potentially superior investment opportunities.

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