Price Momentum and Recent Market Performance
On 2 Feb 2026, Permanent Magnets Ltd closed at ₹842.00, marking a significant 5.37% increase from the previous close of ₹799.10. The stock traded within a wide intraday range, hitting a low of ₹767.00 and a high of ₹908.75, indicating heightened volatility. This price action comes against the backdrop of a 52-week high of ₹1,229.90 and a 52-week low of ₹600.00, positioning the current price closer to the lower end of its annual range.
Comparatively, the stock has outperformed the Sensex over the past week, delivering a 7.15% return versus the benchmark’s 1.00% decline. However, longer-term returns paint a more nuanced picture: a 1-month return of -3.55% slightly underperforms the Sensex’s -4.67%, while year-to-date losses of 3.00% lag behind the Sensex’s 5.28% decline. Over one year, Permanent Magnets Ltd has declined 5.66%, contrasting with the Sensex’s 5.16% gain. The stock’s 3-year and 5-year returns of 18.76% and 481.89% respectively, though impressive, still trail the Sensex’s 35.67% and 74.40% gains. Notably, the 10-year return of 4,451.35% dwarfs the Sensex’s 224.57%, underscoring the stock’s long-term growth potential despite recent volatility.
Technical Indicator Analysis: Mixed Signals
The technical trend for Permanent Magnets Ltd has shifted from bearish to mildly bearish, reflecting a tentative improvement but still signalling caution. The Moving Average Convergence Divergence (MACD) remains bearish on both weekly and monthly timeframes, indicating that downward momentum persists despite recent price gains. This suggests that the recent rally may be a corrective bounce rather than a sustained uptrend.
The Relative Strength Index (RSI) on weekly and monthly charts currently shows no clear signal, hovering in a neutral zone. This lack of momentum confirmation implies that the stock is neither overbought nor oversold, leaving room for further directional movement but no definitive trend confirmation.
Bollinger Bands on weekly and monthly charts are mildly bearish, signalling that price volatility is skewed towards the downside. The bands suggest that the stock price is trading near the lower band on these timeframes, which could indicate potential support but also warns of continued pressure.
Moving Averages and Other Technical Metrics
Daily moving averages are mildly bearish, with the stock price currently below key short-term averages. This alignment typically signals a cautious stance among traders, who may be awaiting clearer confirmation before committing to a bullish position.
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 that while short-term momentum remains weak, longer-term trends may be stabilising or poised for improvement.
Dow Theory analysis also reflects this duality, with weekly signals mildly bullish but monthly signals mildly bearish. This indicates that while some market participants see potential for a short-term rebound, the broader trend remains under pressure.
On-Balance Volume (OBV) data is currently unavailable, limiting insight into volume-driven momentum. However, the existing indicators collectively suggest that the stock is in a consolidation phase, with neither bulls nor bears firmly in control.
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Mojo Score and Market Capitalisation Insights
Permanent Magnets Ltd currently holds a Mojo Score of 27.0, categorised as a Strong Sell, an upgrade from its previous Sell rating as of 5 Jan 2026. This reflects a deteriorated outlook based on a comprehensive evaluation of fundamentals, technicals, and market sentiment. The company’s Market Cap Grade stands at 4, indicating a micro-cap status within the Other Electrical Equipment sector, which often entails higher volatility and risk.
Despite the recent price uptick, the Strong Sell grade suggests that investors should exercise caution, as the stock’s underlying momentum and quality metrics remain weak. The upgrade from Sell to Strong Sell signals increased concern among analysts and market participants about the stock’s near-term prospects.
Sector and Industry Context
Operating within the Other Electrical Equipment industry, Permanent Magnets Ltd faces sector-specific challenges including fluctuating demand, raw material cost pressures, and competitive dynamics. The sector’s performance often correlates with broader industrial and infrastructure cycles, which have shown mixed signals recently. This context adds complexity to the stock’s technical outlook, as external factors may influence price action beyond pure technical considerations.
Investor Takeaways and Outlook
Investors analysing Permanent Magnets Ltd should weigh the mixed technical signals carefully. The stock’s recent price momentum, highlighted by a strong intraday rally, is tempered by bearish MACD readings and mildly bearish moving averages. The neutral RSI and conflicting KST and Dow Theory signals suggest a period of consolidation rather than a decisive trend reversal.
Given the Strong Sell Mojo Grade and micro-cap status, risk-averse investors may prefer to await clearer confirmation of trend improvement before increasing exposure. Conversely, long-term investors might view the current price levels as an opportunity to accumulate, considering the stock’s impressive 10-year return of over 4,400% and potential for recovery if sector conditions improve.
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Conclusion: Navigating a Complex Technical Landscape
Permanent Magnets Ltd’s recent price momentum shift and technical indicator signals present a nuanced picture. While short-term price action shows strength, key technical metrics remain cautious or bearish, reflecting underlying uncertainty. The stock’s Strong Sell Mojo Grade and micro-cap classification further underscore the need for prudence.
Investors should monitor developments in the company’s fundamentals, sector dynamics, and broader market trends to better gauge potential directional shifts. Technical indicators such as MACD, moving averages, and Bollinger Bands will remain critical in assessing momentum changes, while longer-term metrics like KST and Dow Theory offer insight into trend sustainability.
Ultimately, Permanent Magnets Ltd exemplifies the challenges of navigating stocks with mixed technical signals and volatile price action, highlighting the importance of a balanced, data-driven investment approach.
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