Optiemus Infracom Gains 2.73%: 5 Key Factors Driving the Week’s Mixed Momentum

16 February: Sharp Gap Down Reflects Market Concerns

Optiemus Infracom Ltd opened the week on a weak note, with a significant gap down of 5.94% at the opening bell, reflecting heightened market apprehensions. The stock opened at an intraday low of Rs.389.55 and closed the day at Rs.412.20, down 0.47% from the previous close. This decline contrasted with the Sensex’s 0.70% gain, highlighting the stock’s underperformance amid sector headwinds.

The gap down was driven by a combination of bearish technical indicators and a deteriorating fundamental outlook. The stock traded below all key moving averages, with technical momentum signalling bearishness. The elevated beta of 1.69 amplified the stock’s sensitivity to market fluctuations, contributing to the sharp decline. This day also marked the downgrade of the Mojo Grade to Strong Sell, reflecting worsening financial and technical metrics.

Mojo Grade Downgrade to Strong Sell on 16 February

MarketsMOJO downgraded Optiemus Infracom Ltd from Sell to Strong Sell on 16 February 2026, citing deteriorating financial performance and technical indicators. The company reported a 28.9% decline in quarterly PAT to Rs.12.23 crores and a 5.4% drop in PBT excluding other income to Rs.16.76 crores. The ROCE fell to 11.53%, while interest expenses surged 30.08% to Rs.6.27 crores, signalling rising financial strain.

Valuation metrics also weighed on sentiment, with the stock trading well below its 52-week high of Rs.712.95. Technical indicators such as MACD, Bollinger Bands, and moving averages confirmed a bearish trend, reinforcing the downgrade. The downgrade underscored the challenges facing the company amid a competitive telecom equipment sector and pressured profitability.

17 February: Bearish Technical Shift Amid Mixed Momentum

The stock closed at Rs.417.40 on 17 February, gaining 1.26% intraday and showing some recovery from the previous day’s lows. However, technical indicators revealed a shift from mildly bearish to outright bearish momentum. The MACD on weekly and monthly charts remained bearish or mildly bearish, while daily moving averages continued to signal downward pressure.

The Relative Strength Index (RSI) presented mixed signals, with a bullish weekly RSI contrasting a neutral monthly RSI. The Know Sure Thing (KST) indicator and Bollinger Bands also reflected bearish momentum, though with some signs of stabilisation. On-Balance Volume (OBV) was mildly bullish weekly but neutral monthly, indicating limited volume support for a sustained rally.

Despite the modest price gain, the stock remained well below its 52-week high, trading within a wide range of Rs.389.55 to Rs.417.30. The Sensex gained 0.32% on the day, underscoring the stock’s relative weakness amid broader market gains.

18 February: Technical Momentum Shifts to Mildly Bearish

On 18 February, Optiemus Infracom closed at Rs.417.45, a marginal 0.01% increase, reflecting limited upward momentum. Technical momentum showed signs of easing bearishness, shifting from strongly bearish to mildly bearish. The weekly MACD remained bearish, but the monthly MACD improved to mildly bearish, suggesting potential stabilisation.

The weekly RSI turned bullish, signalling short-term strength, while the monthly RSI remained neutral. Bollinger Bands continued to indicate mild bearishness, with the price near the lower band. Daily moving averages stayed bearish, keeping resistance levels intact. Dow Theory on the weekly chart turned mildly bullish, hinting at early signs of accumulation, though monthly trends remained uncertain.

19 & 20 February: Recovery Amid Volatile Market

On 19 February, the stock rebounded to close at Rs.422.15, up 1.13%, despite the Sensex falling 1.45%. This divergence highlighted the stock’s relative strength amid broader market weakness. The following day, 20 February, Optiemus Infracom gained a further 0.78% to close at Rs.425.45, marking the week’s high and a total weekly gain of 2.73% from the opening price.

These gains were supported by the mildly bullish weekly RSI and Dow Theory signals, suggesting some short-term buying interest. However, the stock remained below key moving averages, and monthly momentum indicators continued to signal caution. Volume remained subdued, indicating that the rally lacked strong conviction.

Key Takeaways

Positive Signals: The stock outperformed the Sensex with a 2.73% weekly gain despite a bearish start. Weekly RSI and Dow Theory indicators suggest emerging short-term bullish momentum. The rebound on 19 and 20 February amid a volatile market indicates some resilience.

Cautionary Factors: The downgrade to Strong Sell reflects deteriorating financial health, including declining PAT and rising interest expenses. Technical indicators such as MACD, moving averages, and Bollinger Bands remain bearish or mildly bearish, signalling persistent downward pressure. Volume trends lack strong confirmation of a sustained rally.

Long-Term Context: Despite recent weakness, Optiemus Infracom has delivered impressive long-term returns over 5 and 10 years, significantly outperforming the Sensex. However, near-term challenges in profitability and technical momentum warrant a cautious stance.

Conclusion

Optiemus Infracom Ltd’s week was marked by a volatile start with a sharp gap down and a significant downgrade to Strong Sell, followed by a gradual recovery supported by mixed technical signals. The stock’s 2.73% weekly gain outpaced the Sensex’s 0.39% rise, reflecting some short-term resilience amid broader sector challenges. However, the prevailing bearish technical indicators and deteriorating financial metrics underscore ongoing risks. Investors should weigh the emerging short-term bullish momentum against the fundamental headwinds and monitor key technical levels for confirmation of a sustained trend reversal.

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