Om Infra Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Momentum Shifts to Bearish Territory

Recent technical analysis reveals that Om Infra Ltd’s price momentum has deteriorated from a mildly bearish stance to a distinctly bearish outlook. The stock closed at ₹88.38 on 20 Feb 2026, down 4.46% from the previous close of ₹92.51. This decline is significant given the stock’s 52-week high of ₹146.50 and low of ₹71.72, indicating a substantial retracement from its peak levels.

The daily moving averages have turned bearish, signalling that short-term price trends are weakening. This is corroborated by the weekly and monthly Moving Average Convergence Divergence (MACD) indicators, both firmly in bearish territory. The MACD’s negative crossover on the weekly chart suggests increasing downward momentum, while the monthly MACD confirms a sustained bearish trend over a longer horizon.

RSI and Bollinger Bands Paint a Cautious Picture

The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no clear signal, hovering in neutral zones. This lack of momentum in the RSI suggests that the stock is neither oversold nor overbought, leaving room for further downside or consolidation depending on market catalysts.

Bollinger Bands on the weekly chart have shifted to a bearish stance, with the price moving closer to the lower band, indicating increased volatility and downward pressure. The monthly Bollinger Bands remain mildly bearish, reflecting a cautious medium-term outlook. This combination suggests that while the stock is under pressure, it has not yet reached extreme oversold conditions that might prompt a sharp rebound.

Additional Technical Indicators Confirm Downtrend

The Know Sure Thing (KST) oscillator, a momentum indicator, is bearish on both weekly and monthly charts, reinforcing the negative price momentum. Conversely, the On-Balance Volume (OBV) indicator shows bullish signals on both timeframes, implying that despite price declines, buying volume has not completely dried up. This divergence between price and volume could hint at potential accumulation by investors anticipating a future turnaround.

Dow Theory analysis presents a mildly bullish weekly signal but no clear trend on the monthly scale, suggesting short-term attempts at recovery may be overshadowed by longer-term uncertainty.

Comparative Performance Against Sensex

Om Infra Ltd’s recent returns have lagged behind the benchmark Sensex index, highlighting the stock’s underperformance amid broader market gains. Over the past week, the stock declined by 5.21%, compared to a 1.41% drop in the Sensex. The one-month return, however, shows a positive 7.78% gain for Om Infra, outperforming the Sensex’s 0.90% decline, indicating some short-term resilience.

Year-to-date, the stock has fallen 9.63%, significantly underperforming the Sensex’s 3.19% decline. Over the past year, Om Infra’s return was a negative 23.31%, contrasting sharply with the Sensex’s robust 8.64% gain. Despite this recent weakness, the stock’s longer-term performance remains impressive, with three-year and five-year returns of 115.04% and 258.54% respectively, far outpacing the Sensex’s 35.24% and 62.11% gains. However, the ten-year return of 122.90% trails the Sensex’s 247.96%, reflecting cyclical challenges in the construction sector.

Mojo Score and Grade Reflect Elevated Risk

MarketsMOJO has downgraded Om Infra Ltd’s technical grade from Sell to Strong Sell as of 4 Aug 2025, reflecting the deteriorating technical landscape. The current Mojo Score stands at 3.0, signalling heightened risk and caution for investors. The company holds a Market Cap Grade of 4, indicating a mid-sized market capitalisation within the construction sector.

This downgrade aligns with the bearish technical indicators and recent price weakness, suggesting that investors should exercise prudence and closely monitor further developments before considering new positions.

Outlook and Investor Considerations

Given the current technical indicators and market context, Om Infra Ltd appears to be in a consolidation phase with a bearish bias. The negative MACD readings and daily moving averages suggest that the stock may continue to face downward pressure in the near term. However, the bullish signals from the On-Balance Volume indicator hint at some underlying buying interest, which could provide a foundation for a potential recovery if supported by positive sector developments or company-specific news.

Investors should weigh the stock’s strong long-term returns against its recent volatility and technical weakness. The construction sector remains sensitive to macroeconomic factors such as interest rates, government infrastructure spending, and raw material costs, all of which could influence Om Infra’s performance going forward.

In summary, while Om Infra Ltd’s technical parameters have shifted unfavourably, the stock’s historical resilience and volume patterns suggest that a turnaround is possible, albeit not imminent. Caution is advised, and investors may benefit from monitoring technical signals closely before making fresh commitments.

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