Nitta Gelatin India Ltd Technical Momentum Shifts Signal Mild Bullish Outlook

Technical Trend Overview and Price Movement

As of 13 Feb 2026, Nitta Gelatin India Ltd’s stock price closed at ₹848.00, down 0.98% from the previous close of ₹856.35. The intraday range saw a low of ₹842.50 and a high of ₹878.00, indicating some volatility but no decisive directional breakout. The stock remains comfortably above its 52-week low of ₹640.00 but still below the 52-week high of ₹1,005.00, suggesting room for upside if momentum sustains.

The technical trend has shifted from a sideways pattern to mildly bullish, reflecting a subtle but meaningful change in market sentiment. This transition is supported by a combination of weekly and monthly technical indicators that paint a mixed yet cautiously optimistic picture.

MACD Signals: Divergent Weekly and Monthly Views

The Moving Average Convergence Divergence (MACD) indicator offers a nuanced view. On a weekly basis, the MACD is mildly bullish, signalling that short-term momentum is gaining strength. This suggests that recent price action is supported by increasing buying interest. However, the monthly MACD remains mildly bearish, indicating that longer-term momentum has yet to fully confirm a sustained uptrend. This divergence implies that while short-term traders may find opportunities, longer-term investors should remain vigilant for confirmation.

RSI and Moving Averages: Mixed Momentum Signals

The Relative Strength Index (RSI) on the weekly chart is bearish, signalling that the stock may be experiencing some short-term selling pressure or is in a consolidation phase. Conversely, the monthly RSI does not currently provide a clear signal, reflecting indecision over the longer term.

Daily moving averages also present a mildly bearish stance, suggesting that the immediate price action is under some pressure. This could be due to profit-taking or broader market influences. The interplay between these moving averages and price levels will be critical to watch for signs of a sustained reversal or further weakness.

Bollinger Bands and KST Indicate Positive Momentum

Bollinger Bands on both weekly and monthly charts are bullish, indicating that price volatility is expanding in an upward direction. This often precedes or accompanies price breakouts, signalling potential for further gains if buying interest continues.

The Know Sure Thing (KST) indicator supports this view, showing mild bullishness on the weekly chart and a stronger bullish signal on the monthly chart. KST’s positive readings suggest that momentum is building across multiple timeframes, reinforcing the case for a cautiously optimistic outlook.

Dow Theory and Volume Analysis

According to Dow Theory, both weekly and monthly trends are mildly bullish, which aligns with the broader technical narrative of improving momentum. However, the On-Balance Volume (OBV) indicator lacks a clear signal on both weekly and monthly charts, indicating that volume trends are not decisively confirming price moves. This absence of volume confirmation warrants caution, as strong volume typically validates trend strength.

Comparative Returns Highlight Long-Term Strength

Examining Nitta Gelatin’s returns relative to the Sensex reveals a compelling long-term performance story. Over the past year, the stock has delivered a 20.40% return compared to the Sensex’s 9.85%, more than doubling the benchmark’s gain. Year-to-date, the stock is up 4.18% while the Sensex has declined by 1.81%, underscoring resilience amid broader market weakness.

Over five and ten years, Nitta Gelatin’s returns have been extraordinary, at 394.89% and 359.87% respectively, vastly outperforming the Sensex’s 62.34% and 264.02% gains. This outperformance reflects the company’s strong fundamentals and growth prospects within the specialty chemicals sector, which continues to benefit from niche demand and innovation.

Mojo Score Upgrade Reflects Improved Technical and Market Sentiment

MarketsMOJO has upgraded Nitta Gelatin India Ltd’s Mojo Grade from Sell to Hold as of 1 Feb 2026, with a current Mojo Score of 61.0. This upgrade reflects the recent technical momentum shift and improved market sentiment. The company holds a Market Cap Grade of 4, indicating a mid-sized market capitalisation that balances liquidity with growth potential.

The Hold rating suggests that while the stock is no longer a sell, investors should monitor developments closely before committing to a stronger buy position. The mixed technical signals and moderate daily price decline of 0.98% reinforce the need for a measured approach.

Sector Context and Outlook

Operating within the specialty chemicals sector, Nitta Gelatin benefits from steady demand for high-quality gelatin products used in pharmaceuticals, food, and industrial applications. The sector has shown resilience amid global supply chain disruptions and evolving regulatory landscapes.

Technical indicators suggest that the stock is poised for a mild bullish phase, but investors should be mindful of potential volatility and the need for confirmation from volume and momentum indicators. The weekly bullish signals from MACD, Bollinger Bands, KST, and Dow Theory provide a foundation for optimism, while the bearish RSI and daily moving averages counsel caution.

Investor Takeaway

For investors considering Nitta Gelatin India Ltd, the current technical landscape suggests a cautiously optimistic stance. The mild bullish momentum on weekly indicators and the recent Mojo Grade upgrade to Hold indicate that the stock is stabilising after a period of sideways movement. However, the bearish RSI and daily moving averages highlight the importance of monitoring short-term price action closely.

Long-term investors may find comfort in the company’s strong historical returns and sector fundamentals, but should remain alert to volume trends and broader market conditions that could influence momentum. A confirmed breakout above recent highs supported by volume would strengthen the bullish case.

In summary, Nitta Gelatin India Ltd is transitioning into a phase of mild bullishness, supported by a blend of technical signals and improving market sentiment. Investors should weigh these factors carefully within their portfolio strategy, balancing potential upside with prudent risk management.

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