Technical Trend and Price Movement Analysis
The stock closed at ₹834.90 on 3 Feb 2026, down 3.23% from the previous close of ₹862.75. Intraday volatility was evident with a high of ₹880.00 and a low of ₹814.15, reflecting investor uncertainty amid shifting momentum. Over the past 52 weeks, Nitta Gelatin has traded between ₹640.00 and ₹1,005.00, indicating a wide trading range and potential for both risk and reward.
The technical trend has shifted from sideways to mildly bearish, signalling a cautious outlook. This change is corroborated by the daily moving averages, which currently indicate a mildly bearish stance, suggesting that short-term price averages are trending lower. The weekly MACD (Moving Average Convergence Divergence) remains bearish, reinforcing the downward momentum, while the monthly MACD is mildly bearish, indicating some longer-term caution among market participants.
Momentum Indicators: MACD, RSI, and KST
The MACD, a key momentum indicator, shows bearish signals on the weekly chart, with the MACD line below the signal line, suggesting that selling pressure is prevailing in the near term. The monthly MACD, while mildly bearish, hints at a less severe downtrend over a longer horizon, implying that the stock may find support or consolidation in coming months.
The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no clear signal, hovering in neutral territory. This lack of extreme readings suggests that the stock is neither overbought nor oversold, leaving room for potential directional moves based on upcoming market catalysts.
Interestingly, the KST (Know Sure Thing) indicator presents a mixed view: bearish on the weekly timeframe but bullish on the monthly. This divergence indicates that while short-term momentum is weakening, the longer-term trend may still be intact, offering a complex scenario for traders and investors to consider.
Bollinger Bands and Moving Averages
Bollinger Bands on the weekly chart show a sideways pattern, reflecting a period of consolidation and limited volatility. However, the monthly Bollinger Bands are mildly bullish, suggesting that over a longer period, price volatility may expand upwards, potentially signalling a future breakout.
Daily moving averages reinforce the mildly bearish outlook, with the stock price currently trading below key short-term averages. This technical setup often acts as resistance, making it challenging for the stock to rally without significant buying interest.
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Volume and Dow Theory Insights
While On-Balance Volume (OBV) data is not explicitly available for weekly and monthly periods, the price action combined with volume trends typically informs the Dow Theory signals. Both weekly and monthly Dow Theory assessments are mildly bullish, suggesting that despite short-term bearish technicals, the underlying trend may still favour accumulation and potential upside over time.
Comparative Performance Versus Sensex
Examining Nitta Gelatin’s returns relative to the Sensex reveals a strong outperformance across multiple timeframes. Over the past week, the stock surged 7.18% compared to a marginal 0.16% gain in the Sensex. Over one month and year-to-date periods, the stock posted modest gains of 2.07% and 2.57%, respectively, while the Sensex declined by 4.78% and 4.17%. This resilience is further underscored by a 12.07% return over the past year versus the Sensex’s 5.37%.
Longer-term returns are even more impressive, with a three-year gain of 41.63% compared to 36.26% for the Sensex, a five-year return of 382.88% versus 64.00%, and a ten-year return of 315.17% against 232.80% for the benchmark. These figures highlight Nitta Gelatin’s strong fundamental and market position within the Specialty Chemicals sector despite recent technical headwinds.
Mojo Score and Rating Update
MarketsMOJO’s latest assessment upgraded Nitta Gelatin India Ltd’s Mojo Grade from Sell to Hold on 1 Feb 2026, reflecting a cautious but improved outlook. The current Mojo Score stands at 51.0, indicating a neutral stance with potential for either consolidation or moderate upside. The Market Cap Grade is 4, suggesting a mid-sized market capitalisation relative to peers in the Specialty Chemicals industry.
Investment Implications and Outlook
The mixed technical signals present a complex scenario for investors. The mildly bearish short-term indicators caution against aggressive buying, while the longer-term bullish signals and strong relative performance versus the Sensex suggest that the stock retains underlying strength. Investors may consider a watchful approach, monitoring key technical levels such as the 52-week low of ₹640.00 and the recent high near ₹1,005.00 for signs of trend confirmation or reversal.
Given the sideways to mildly bearish technical trend and neutral RSI readings, the stock may experience a period of consolidation before a decisive move. Traders focusing on momentum indicators like MACD and KST should remain alert to shifts in these oscillators for early signals of trend changes.
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Sector Context and Market Position
Operating within the Specialty Chemicals sector, Nitta Gelatin India Ltd benefits from niche market positioning and steady demand fundamentals. The sector itself has shown resilience amid broader market volatility, supported by steady industrial and pharmaceutical demand. However, the stock’s recent technical deterioration suggests that sector tailwinds may not fully offset near-term price pressures.
Investors should weigh the company’s strong historical returns and fundamental strengths against the current technical caution. The mildly bullish monthly Bollinger Bands and Dow Theory signals offer some optimism for a medium-term recovery, but the weekly bearish MACD and KST indicators highlight the need for prudence.
Conclusion
Nitta Gelatin India Ltd’s recent shift from a sideways to a mildly bearish technical trend reflects a nuanced market environment. While short-term momentum indicators signal caution, longer-term technicals and relative performance versus the Sensex suggest the stock remains fundamentally sound. The upgrade from Sell to Hold by MarketsMOJO underscores this balanced outlook.
Investors should monitor key technical indicators closely, particularly the MACD and moving averages, for confirmation of trend direction. Given the mixed signals, a measured approach focusing on risk management and selective entry points may be prudent. The stock’s strong historical returns and sector positioning provide a foundation for potential recovery, but near-term volatility is likely to persist.
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