Nitta Gelatin India Ltd Technical Momentum Shifts Amid Mixed Indicator Signals

Technical Trend Overview and Price Movement

As of 6 Feb 2026, Nitta Gelatin’s stock price closed at ₹827.00, down 1.64% from the previous close of ₹840.75. The intraday range saw a high of ₹844.00 and a low of ₹821.80, reflecting some volatility within the trading session. The stock remains below its 52-week high of ₹1,005.00 but comfortably above the 52-week low of ₹640.00, indicating a recovery phase over the past year.

The technical trend has shifted from a neutral sideways pattern to a mildly bearish one, suggesting that the recent price momentum is losing strength. This is corroborated by the daily moving averages which currently indicate a mildly bearish signal, hinting at potential downward pressure in the near term.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD is bearish, signalling that the short-term momentum is weakening relative to the longer-term trend. Conversely, the monthly MACD is mildly bearish, indicating that while the longer-term momentum is still under pressure, it is less severe than the weekly outlook.

This divergence between weekly and monthly MACD readings suggests that while short-term traders might face headwinds, longer-term investors could find some stability if the monthly trend holds.

RSI and Overbought/Oversold Conditions

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in a neutral zone. This absence of an overbought or oversold condition implies that the stock is not exhibiting extreme price movements, which often precede reversals. Investors should monitor RSI closely for any emerging signals that could confirm a trend continuation or reversal.

Bollinger Bands and Volatility

Bollinger Bands provide insight into price volatility and potential breakout points. On the weekly chart, the bands are bearish, indicating that the stock price is trending towards the lower band, a sign of increasing selling pressure. However, the monthly Bollinger Bands are mildly bullish, suggesting that over a longer horizon, volatility may contract and prices could stabilise or even rebound.

Moving Averages and KST Indicator

Daily moving averages are mildly bearish, reinforcing the short-term cautionary stance. This suggests that the stock price is trading below key moving averages such as the 50-day or 200-day, which often act as dynamic support or resistance levels.

The Know Sure Thing (KST) indicator presents a split view: weekly KST is bearish, aligning with the short-term momentum loss, while the monthly KST is bullish, indicating that the longer-term momentum remains positive. This divergence again highlights the importance of timeframe in technical analysis for Nitta Gelatin.

Dow Theory and On-Balance Volume (OBV)

According to Dow Theory, both weekly and monthly trends are mildly bullish, suggesting that the broader market sentiment for the stock remains cautiously optimistic despite short-term setbacks. However, the On-Balance Volume (OBV) data is inconclusive for both weekly and monthly periods, providing no clear directional volume support to confirm price moves.

Comparative Returns and Market Context

From a performance perspective, Nitta Gelatin has outperformed the Sensex across multiple timeframes. Over the past week, the stock returned 6.23% compared to Sensex’s 0.91%. Over one month, it gained 2.24% while the Sensex declined by 2.49%. Year-to-date returns stand at 1.60% versus a negative 2.24% for the benchmark.

Longer-term returns are even more impressive, with a 10-year return of 298.36% against Sensex’s 238.44%, and a five-year return of 376.11% compared to 64.22% for the index. This strong relative performance underscores the company’s resilience and growth potential within the Specialty Chemicals sector.

Mojo Score and Analyst Ratings

Nitta Gelatin’s current Mojo Score stands at 51.0, reflecting a Hold rating, an upgrade from the previous Sell grade as of 1 Feb 2026. This improvement signals a more balanced outlook, with neither strong buy nor sell signals dominating. The Market Cap Grade is 4, indicating a mid-tier market capitalisation relative to peers.

The Hold rating aligns with the mixed technical signals observed, where short-term bearishness is tempered by longer-term bullish momentum and solid relative returns. Investors should weigh these factors carefully, considering both the potential for near-term volatility and the company’s demonstrated resilience over extended periods.

Investment Implications and Outlook

For investors in the Specialty Chemicals sector, Nitta Gelatin presents a nuanced technical profile. The mildly bearish short-term indicators suggest caution, particularly for traders seeking immediate gains. However, the longer-term bullish signals and strong relative returns versus the Sensex provide a compelling case for patient investors.

Monitoring key technical levels such as the 50-day and 200-day moving averages, alongside MACD and Bollinger Band developments, will be critical in the coming weeks. A sustained break below current support levels could confirm a deeper correction, while a rebound supported by volume and momentum indicators may signal renewed strength.

Overall, the stock’s upgraded Mojo Grade to Hold reflects this balanced outlook, recommending a watchful approach rather than aggressive positioning at this juncture.

Summary

Nitta Gelatin India Ltd’s technical landscape is characterised by a shift towards mild bearishness in the short term, with mixed signals from key indicators such as MACD, RSI, Bollinger Bands, and moving averages. Despite this, longer-term momentum remains positive, supported by strong relative returns and a recent upgrade in analyst sentiment. Investors should adopt a cautious but attentive stance, leveraging technical signals to time entries and exits effectively within the Specialty Chemicals sector.

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