Key Events This Week
5 Jan: Death Cross formation signalling bearish trend
6 Jan: Technical downgrade to Sell rating
7 Jan: Mildly bearish momentum amid mixed signals
9 Jan: Technical momentum shifts with cautious stabilisation
5 January 2026: Death Cross Formation Signals Bearish Trend
On the opening day of the week, Nitta Gelatin India Ltd’s stock closed at ₹808.85, down 1.12% from the previous close of ₹818.00. This decline coincided with the formation of a Death Cross, where the 50-day moving average crossed below the 200-day moving average, a widely recognised bearish technical indicator. This crossover suggested a shift from bullish to bearish momentum, raising concerns about sustained downward pressure on the stock.
The Death Cross was supported by other technical indicators, including bearish daily moving averages and a negative weekly MACD. The stock’s relative underperformance compared to the Sensex, which declined only 0.18% that day, underscored the emerging weakness. The company’s Mojo Score was downgraded to 37.0, placing it firmly in the Sell category, reflecting deteriorating technical and fundamental conditions.
6 January 2026: Technical Downgrade Reinforces Bearish Momentum
The bearish sentiment deepened on 6 January as the stock edged up slightly to ₹810.90 (+0.25%) but remained under pressure amid a technical downgrade from Hold to Sell. This rating change reflected growing concerns over the stock’s momentum and technical health. Despite a modest intraday high of ₹820.00, the stock failed to sustain gains and closed below key moving averages.
Technical indicators such as the weekly MACD remained firmly bearish, while the monthly MACD was mildly bearish, signalling weakening momentum across timeframes. The Relative Strength Index (RSI) hovered in neutral territory, indicating no immediate oversold conditions but a lack of bullish conviction. The Sensex declined 0.19% that day, while Nitta Gelatin’s slight gain was insufficient to reverse the negative trend.
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7 January 2026: Mixed Technical Signals Amid Mild Recovery
On 7 January, the stock price declined to ₹806.85 (-0.50%), reflecting continued short-term weakness. However, technical momentum showed signs of stabilisation, shifting from a clearly bearish to a mildly bearish trend. The weekly MACD remained bearish, but the monthly MACD softened to mildly bearish, suggesting that longer-term selling pressure might be easing.
Bollinger Bands on the weekly chart stayed bearish, indicating downside volatility, while monthly bands turned mildly bullish, hinting at potential stabilisation. The Know Sure Thing (KST) indicator presented a bearish weekly but bullish monthly signal, reinforcing the mixed technical landscape. The Sensex gained 0.03% that day, outperforming the stock’s modest decline.
Despite the short-term challenges, Nitta Gelatin’s long-term returns remain robust, with five- and ten-year gains exceeding 360%, significantly outperforming the Sensex. This contrast highlights the stock’s historical resilience amid current technical headwinds.
8 January 2026: Continued Volatility and Sector Challenges
The stock closed marginally higher at ₹807.35 (+0.06%) on 8 January, amid a sharp Sensex decline of 1.41%. This divergence suggested relative resilience in Nitta Gelatin despite broader market weakness. Technical indicators remained mixed, with daily moving averages still bearish and Bollinger Bands on the weekly chart signalling downside risk.
The company’s market capitalisation of ₹742 crores and a low P/E ratio of 9.87 compared to the Specialty Chemicals sector average of 40.63 reflect investor caution. Sector-specific challenges, including raw material cost fluctuations and cyclical demand, continue to weigh on the stock’s outlook.
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9 January 2026: Technical Momentum Softens Amid Cautious Optimism
The week closed on 9 January with the stock at ₹793.45, down 1.72% for the day and 3.00% for the week. Despite the decline, technical momentum showed signs of softening from bearish to mildly bearish. The weekly MACD remained bearish, but the monthly MACD improved to mildly bearish, indicating a possible easing of selling pressure over the medium term.
RSI readings remained neutral, and Bollinger Bands on the weekly chart continued to suggest selling pressure, while monthly bands were sideways, reflecting range-bound trading. The Know Sure Thing (KST) indicator remained bearish weekly but bullish monthly, reinforcing the mixed signals. Dow Theory readings were mildly bullish weekly but inconclusive monthly, adding to the technical uncertainty.
Volume data was limited, restricting insights into the strength behind price moves. The Sensex declined 0.89% that day, slightly outperforming the stock’s fall. Overall, the technical landscape remains in flux, with cautious stabilisation amid persistent risks.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-05 | Rs.808.85 | -1.12% | 37,730.95 | -0.18% |
| 2026-01-06 | Rs.810.90 | +0.25% | 37,657.70 | -0.19% |
| 2026-01-07 | Rs.806.85 | -0.50% | 37,669.63 | +0.03% |
| 2026-01-08 | Rs.807.35 | +0.06% | 37,137.33 | -1.41% |
| 2026-01-09 | Rs.793.45 | -1.72% | 36,807.62 | -0.89% |
Key Takeaways
Bearish Technical Signals: The formation of a Death Cross and sustained bearish daily moving averages signal a weakening trend. The downgrade to a Sell rating and a Mojo Score of 37.0 reinforce the negative momentum.
Mixed Momentum Indicators: Divergent weekly and monthly MACD and KST readings suggest short-term weakness but potential longer-term stabilisation. Neutral RSI and sideways monthly Bollinger Bands indicate consolidation rather than oversold conditions.
Relative Underperformance: The stock declined 3.00% over the week, slightly underperforming the Sensex’s 2.62% fall, reflecting sector-specific and company-specific challenges.
Long-Term Strength: Despite recent setbacks, Nitta Gelatin’s five- and ten-year returns remain robust, significantly outperforming the Sensex, highlighting the company’s historical growth potential.
Sector and Valuation Context: Operating in the Specialty Chemicals sector with a low P/E ratio and mid-tier market capitalisation, the stock faces cyclical pressures and limited institutional interest, contributing to volatility.
Conclusion
Nitta Gelatin India Ltd’s week was characterised by a clear technical deterioration, marked by the Death Cross formation and a downgrade to a Sell rating. While short-term indicators remain bearish, mixed signals from monthly momentum indicators and the stock’s strong long-term performance suggest cautious investors should monitor developments closely. The stock’s underperformance relative to the Sensex and sector challenges warrant prudence, with stabilisation signs requiring confirmation before any sustained recovery can be anticipated. Overall, the technical landscape advises a measured approach amid ongoing market uncertainty.
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