Technical Trend Overview and Momentum Shifts
As of 9 January 2026, Nitta Gelatin India Ltd’s technical trend has shifted from a clearly bearish stance to a mildly bearish one. This subtle improvement suggests that while downward pressure remains, the intensity of selling momentum has eased somewhat. The stock closed at ₹808.00, slightly above the previous close of ₹806.85, with intraday highs reaching ₹835.95 and lows at ₹800.05. The 52-week price range remains broad, with a high of ₹1,005.00 and a low of ₹640.00, indicating significant volatility over the past year.
MACD Signals: Divergent Weekly and Monthly Perspectives
The Moving Average Convergence Divergence (MACD) indicator continues to signal bearish momentum on the weekly chart, reflecting persistent selling pressure in the short term. However, the monthly MACD has improved to a mildly bearish stance, hinting at a potential stabilisation or gradual recovery over a longer horizon. This divergence between weekly and monthly MACD readings suggests that while short-term traders may remain cautious, longer-term investors could find some comfort in the easing of downward momentum.
RSI and Bollinger Bands: Neutral to Bearish Indicators
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This lack of extreme readings implies that the stock is neither overbought nor oversold, which may indicate a consolidation phase. Meanwhile, Bollinger Bands on the weekly timeframe remain bearish, signalling that price volatility is skewed towards downside risk in the near term. Conversely, the monthly Bollinger Bands are sideways, reinforcing the notion of a stabilising price range over the medium term.
Moving Averages and KST: Conflicting Signals
Daily moving averages continue to reflect a bearish trend, with the stock price trading below key averages, suggesting that short-term momentum remains weak. The Know Sure Thing (KST) indicator presents a mixed picture: bearish on the weekly scale but bullish on the monthly scale. This contrast further emphasises the divergence between short-term caution and longer-term optimism among market participants.
Dow Theory and On-Balance Volume (OBV) Insights
According to Dow Theory, the weekly trend is mildly bullish, indicating that some market participants may be positioning for a recovery. However, the monthly Dow Theory trend shows no clear direction, reflecting uncertainty in the broader market context. On-Balance Volume (OBV) data is currently inconclusive, with no significant signals on either weekly or monthly charts, suggesting that volume trends have not decisively confirmed price movements.
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Comparative Performance: Stock vs Sensex
Examining Nitta Gelatin’s returns relative to the Sensex over various periods reveals a mixed performance. Over the past week, the stock declined by 0.27%, outperforming the Sensex’s sharper fall of 1.18%. Over one month, the stock gained 0.42%, while the Sensex dropped 1.08%, indicating relative resilience. Year-to-date, the stock is down 0.74%, slightly better than the Sensex’s 1.22% decline. However, over the one-year horizon, Nitta Gelatin’s 5.35% return lags behind the Sensex’s 7.72% gain. Longer-term returns are more favourable for the stock, with three-year gains of 31.82% versus the Sensex’s 40.53%, and an impressive five-year return of 377.97%, significantly outperforming the Sensex’s 72.56%. Over ten years, the stock has delivered 367.05%, well ahead of the Sensex’s 237.61%, underscoring its strong long-term growth trajectory despite recent volatility.
Mojo Score and Grade Revision
MarketsMOJO’s proprietary scoring system currently assigns Nitta Gelatin a Mojo Score of 37.0, categorising it as a Sell. This represents a downgrade from the previous Hold rating, effective from 5 January 2026. The Market Cap Grade stands at 4, reflecting the company’s mid-tier capitalisation within the Specialty Chemicals sector. This downgrade aligns with the mixed technical signals and the cautious short-term outlook, signalling investors to exercise prudence.
Sector Context and Industry Positioning
Nitta Gelatin operates within the Specialty Chemicals industry, a sector known for cyclical demand and sensitivity to raw material costs. The company’s technical indicators suggest it is navigating a challenging phase, with short-term bearishness tempered by longer-term bullish signals. Investors should consider sector dynamics alongside company-specific factors when assessing the stock’s prospects.
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Investor Takeaway and Outlook
In summary, Nitta Gelatin India Ltd’s technical parameters reveal a nuanced momentum shift. The transition from bearish to mildly bearish trend, coupled with mixed MACD and KST signals, suggests a stock in consolidation rather than outright decline. The neutral RSI and sideways monthly Bollinger Bands reinforce this view of a stabilising price range. However, daily moving averages and weekly bearish indicators counsel caution in the short term.
Long-term investors may find encouragement in the stock’s robust multi-year returns and improving monthly momentum indicators. Conversely, short-term traders should remain vigilant for confirmation of trend direction, particularly given the conflicting signals from various technical tools.
Given the recent downgrade to a Sell rating by MarketsMOJO and the modest Mojo Score of 37.0, investors are advised to weigh these technical insights alongside fundamental analysis and sector outlook before making allocation decisions.
Key Technical Metrics Summary:
- Current Price: ₹808.00
- Day Change: +0.14%
- 52-Week Range: ₹640.00 – ₹1,005.00
- MACD: Weekly Bearish, Monthly Mildly Bearish
- RSI: Neutral (Weekly & Monthly)
- Bollinger Bands: Weekly Bearish, Monthly Sideways
- Moving Averages: Daily Bearish
- KST: Weekly Bearish, Monthly Bullish
- Dow Theory: Weekly Mildly Bullish, Monthly No Trend
- Mojo Score: 37.0 (Sell)
Investors should monitor upcoming price action for a decisive breakout above daily moving averages or a sustained improvement in weekly MACD to confirm a trend reversal. Until then, the stock remains in a cautious technical phase.
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