Permanent Magnets Ltd Faces Bearish Momentum Amid Technical Downturn

Recent Price Movement and Market Context

On 6 February 2026, Permanent Magnets Ltd closed at ₹814.00, down 4.30% from the previous close of ₹850.55. The intraday range was between ₹805.00 and ₹845.25, indicating persistent selling pressure. The stock remains well below its 52-week high of ₹1,229.90 but comfortably above its 52-week low of ₹600.00, suggesting a wide trading band over the past year.

Comparatively, the stock’s recent returns have underperformed the broader market benchmark, the Sensex. Over the past month, Permanent Magnets Ltd declined by 6.54%, while the Sensex fell by 2.49%. Year-to-date, the stock is down 6.22% versus a 2.24% decline in the Sensex. Over the one-year horizon, the stock’s return is negative at -13.40%, contrasting with a 6.44% gain in the Sensex. However, the company’s long-term performance remains impressive, with a five-year return of 460.99% and a ten-year return of 4,525.00%, far outpacing the Sensex’s 64.22% and 238.44% respectively.

Technical Indicators Signal Bearish Momentum

The technical trend for Permanent Magnets Ltd has shifted from mildly bearish to outright bearish, reflecting a deterioration in price momentum. The Moving Average Convergence Divergence (MACD) indicator is bearish on both weekly and monthly charts, signalling sustained downward momentum. The MACD histogram has been negative for several weeks, confirming the dominance of sellers.

The Relative Strength Index (RSI) remains neutral with no clear signal on weekly or monthly timeframes, hovering around mid-range levels. This suggests the stock is neither oversold nor overbought, but the lack of bullish RSI divergence limits upside potential in the near term.

Bollinger Bands on weekly and monthly charts indicate a mildly bearish stance, with the price trending towards the lower band. This often signals increased volatility and potential continuation of the downtrend unless a reversal pattern emerges.

Daily moving averages are firmly bearish, with the stock trading below its 50-day and 200-day moving averages. This confirms the short-term and medium-term downtrend, reinforcing the negative technical outlook.

Mixed Signals from Other Technical Tools

The Know Sure Thing (KST) indicator presents a mixed picture: bearish on the weekly chart but mildly bullish on the monthly chart. This divergence suggests some underlying strength in the longer-term momentum, though it is currently overshadowed by short-term weakness.

Dow Theory assessments also show conflicting signals, with a mildly bullish weekly outlook but a mildly bearish monthly stance. This indicates that while short-term price action may attempt to stabilise or recover, the broader monthly trend remains under pressure.

On-Balance Volume (OBV) data is inconclusive, with no clear directional bias on weekly or monthly charts, implying that volume trends are not strongly supporting either buyers or sellers at present.

Mojo Score and Ratings Reflect Deterioration

MarketsMOJO assigns Permanent Magnets Ltd a Mojo Score of 21.0, categorising it as a Strong Sell. This represents a downgrade from the previous Sell rating on 5 January 2026, highlighting increased concerns over the stock’s near-term prospects. The Market Cap Grade remains low at 4, indicating limited market capitalisation strength relative to peers.

The downgrade is consistent with the technical deterioration observed across multiple indicators and timeframes. Investors should note that the strong sell rating reflects both fundamental and technical weaknesses, signalling caution for current and prospective shareholders.

Long-Term Performance Versus Short-Term Weakness

Despite the recent technical setbacks, Permanent Magnets Ltd’s long-term returns remain exceptional. The stock has delivered a staggering 4,525.00% return over ten years, vastly outperforming the Sensex’s 238.44% gain. This underscores the company’s historical ability to generate shareholder value over extended periods.

However, the recent underperformance relative to the Sensex and the bearish technical signals suggest that investors should be vigilant. The stock’s price momentum has weakened considerably, and short- to medium-term risks appear elevated.

Investors may want to monitor key support levels near ₹800 and the 52-week low of ₹600. A sustained break below these levels could trigger further downside, while any recovery above the 50-day moving average might signal a potential technical rebound.

Investor Takeaway and Outlook

Permanent Magnets Ltd’s technical profile has shifted decisively towards bearishness, with multiple indicators confirming weakening price momentum. The downgrade to a Strong Sell rating by MarketsMOJO reflects this negative outlook, compounded by the stock’s underperformance relative to the Sensex over recent months.

While the company’s long-term fundamentals and historical returns remain impressive, the current technical environment advises caution. Investors should closely monitor price action around key moving averages and support levels, as well as any changes in volume trends that might signal a reversal.

Given the mixed signals from monthly momentum indicators and Dow Theory, a cautious approach is warranted. Short-term traders may consider avoiding fresh long positions until a clearer technical recovery emerges, while long-term investors might use weakness to reassess portfolio allocations.

Overall, Permanent Magnets Ltd is navigating a challenging phase marked by bearish technical momentum and a downgraded rating, underscoring the importance of disciplined risk management and ongoing market analysis.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →