Permanent Magnets Ltd Faces Bearish Momentum Amid Technical Indicator Shifts

Technical Trend Overview and Price Movement

Permanent Magnets Ltd, operating within the Other Electrical Equipment sector, closed at ₹827.00 on 18 Feb 2026, down 2.27% from the previous close of ₹846.25. The stock traded within a range of ₹824.00 to ₹847.95 during the session, reflecting increased volatility. The 52-week high stands at ₹1,229.90, while the 52-week low is ₹600.00, indicating a wide trading band over the past year.

The technical trend has shifted from mildly bearish to outright bearish, signalling a deterioration in price momentum. This shift is corroborated by the daily moving averages, which currently maintain a bearish stance, suggesting that short-term price averages are trending lower and exerting downward pressure on the stock.

MACD and RSI Signals

The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly charts, reinforcing the negative momentum. The MACD line continues to stay below the signal line, indicating that the stock's recent price movements lack upward strength. This persistent bearish MACD reading suggests that sellers dominate the market sentiment over medium and longer-term horizons.

Conversely, the Relative Strength Index (RSI) on weekly and monthly timeframes currently shows no clear signal, hovering in neutral territory. This lack of RSI extremes implies that the stock is neither overbought nor oversold, leaving room for further downside or sideways consolidation before a decisive reversal might occur.

Bollinger Bands and Moving Averages

Bollinger Bands analysis reveals a bearish bias on the weekly chart and a mildly bearish stance on the monthly chart. The stock price is trading near the lower band on the weekly timeframe, indicating increased selling pressure and potential continuation of the downtrend. The mildly bearish monthly Bollinger Bands suggest that while the longer-term volatility remains elevated, the stock has yet to reach oversold extremes that might trigger a rebound.

Daily moving averages confirm the bearish outlook, with the short-term averages positioned below longer-term averages, a classic technical signal of downward momentum. This alignment typically discourages bullish traders and may attract further selling interest.

Other Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator presents a mildly bullish signal on both weekly and monthly charts, offering a slight counterbalance to the prevailing bearish momentum. This mild bullishness may indicate some underlying accumulation or short-term buying interest, but it is insufficient to overturn the broader negative trend.

Dow Theory analysis is mixed: weekly readings are mildly bullish, while monthly readings remain mildly bearish. This divergence suggests that while short-term market sentiment may be improving, the longer-term trend remains under pressure. Investors should monitor these signals closely for confirmation of any trend reversal.

On-Balance Volume (OBV) data is currently unavailable, limiting the ability to assess volume-driven momentum. However, given the price declines and bearish technicals, volume trends may likely be supportive of the downtrend.

Comparative Performance Against Sensex

Examining Permanent Magnets Ltd’s returns relative to the Sensex provides additional context. Over the past week, the stock has underperformed significantly, declining 9.44% compared to the Sensex’s modest 0.98% drop. Over one month, the stock fell 2.85%, while the Sensex was down only 0.14%. Year-to-date, Permanent Magnets Ltd is down 4.72%, lagging the Sensex’s 2.08% decline.

Longer-term returns tell a different story. Over one year, the stock has gained 9.54%, closely tracking the Sensex’s 9.81% rise. Over three years, however, Permanent Magnets Ltd’s 8.44% return pales in comparison to the Sensex’s robust 36.80% gain. The five-year and ten-year returns are exceptional, with the stock appreciating 410.18% and 5,235.48% respectively, vastly outperforming the Sensex’s 61.40% and 256.90% gains. This highlights the company’s strong historical growth despite recent technical setbacks.

Mojo Score and Ratings Update

MarketsMOJO’s latest assessment downgraded Permanent Magnets Ltd’s Mojo Grade from Strong Sell to Sell on 5 Jan 2026, reflecting the deteriorating technical and fundamental outlook. The current Mojo Score stands at 30.0, signalling weak momentum and caution for investors. The Market Cap Grade is 4, indicating a mid-tier market capitalisation within its sector.

This downgrade aligns with the technical trend shift and bearish signals from multiple indicators, reinforcing the need for investors to reassess their positions in the stock.

Investor Takeaway and Outlook

Permanent Magnets Ltd’s recent technical deterioration suggests that the stock is currently in a bearish phase, with multiple indicators confirming downward momentum. The persistent bearish MACD and moving averages, combined with the stock’s failure to generate strong RSI signals, imply limited near-term upside potential.

However, the mildly bullish KST and weekly Dow Theory signals hint at some short-term support, which could lead to consolidation or a modest rebound. Investors should watch for a sustained break above key moving averages or a positive MACD crossover to signal a potential trend reversal.

Given the stock’s strong long-term returns and historical outperformance relative to the Sensex, Permanent Magnets Ltd remains a company with solid fundamentals. Yet, the current technical landscape advises caution, especially for short-term traders and momentum investors.

Portfolio managers and investors are advised to monitor the evolving technical signals closely and consider alternative opportunities within the sector or broader market to optimise returns and manage risk effectively.

Unlock special upgrade rates for a limited period. Start Saving Now →