Technical Trend Overview
Recent analysis reveals that Permanent Magnets Ltd’s technical trend has deteriorated from mildly bearish to outright bearish. The stock closed at ₹835.10 on 23 Feb 2026, down 1.98% from the previous close of ₹851.95. The intraday range was between ₹820.00 and ₹872.95, reflecting heightened volatility. This price movement comes against a backdrop of a 52-week high of ₹1,229.90 and a low of ₹600.00, indicating the stock is trading closer to its lower range in the past year.
The bearish shift is corroborated by multiple technical indicators. The Moving Average Convergence Divergence (MACD) remains bearish on both weekly and monthly charts, signalling sustained downward momentum. The daily moving averages also align with this negative outlook, reinforcing the short-term downtrend. Meanwhile, Bollinger Bands indicate a bearish stance weekly and mildly bearish monthly, suggesting the stock price is trending towards the lower band, often a sign of selling pressure.
Momentum and Oscillator Signals
The Relative Strength Index (RSI) on weekly and monthly timeframes currently shows no clear signal, hovering in a neutral zone. This lack of momentum confirmation implies that while the stock is under pressure, it has not yet reached oversold conditions that might prompt a technical rebound. The Know Sure Thing (KST) oscillator, however, offers a mildly bullish signal on both weekly and monthly charts, hinting at some underlying positive momentum that could temper the bearish trend in the near term.
Dow Theory assessments present a mixed picture: mildly bullish on the weekly scale but mildly bearish monthly. This divergence suggests that while short-term price action may show some resilience, the broader monthly trend remains under pressure. On Balance Volume (OBV) data is not currently available, limiting volume-based confirmation of price moves.
Comparative Performance and Market Context
When compared to the broader market, Permanent Magnets Ltd has underperformed the Sensex over recent short-term periods. The stock’s one-week return stands at -1.00% versus the Sensex’s 0.23%, and one-month return is -1.75% compared to the Sensex’s 0.77%. Year-to-date, the stock has declined 3.79%, slightly worse than the Sensex’s 2.82% fall. However, over longer horizons, Permanent Magnets Ltd has delivered impressive gains, with a 10.61% return over one year compared to the Sensex’s 9.35%, and an extraordinary 416.61% return over five years against the Sensex’s 62.73%. The ten-year return is particularly striking at 5,287.74%, dwarfing the Sensex’s 249.29%.
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Mojo Score and Ratings Update
Permanent Magnets Ltd currently holds a Mojo Score of 30.0, categorised as a Sell rating. This represents an upgrade from a previous Strong Sell rating as of 5 Jan 2026, reflecting a slight improvement in technical and fundamental parameters. The Market Cap Grade is rated 4, indicating a mid-tier market capitalisation within its sector. Despite the upgrade, the overall sentiment remains cautious due to persistent bearish technical signals and recent price weakness.
Technical Indicators in Detail
The MACD’s bearish stance on weekly and monthly charts is a critical factor driving the negative outlook. The MACD line remains below the signal line, and histogram bars continue to show negative momentum, suggesting sellers dominate the trend. The daily moving averages, including the 50-day and 200-day, are aligned bearishly, with the shorter-term average below the longer-term, confirming a downtrend.
Bollinger Bands’ weekly bearish signal indicates the price is moving towards the lower band, often a precursor to increased volatility or further downside. The mildly bearish monthly Bollinger Bands suggest some stabilisation but no clear reversal. The RSI’s neutral reading implies the stock is neither overbought nor oversold, leaving room for further directional movement.
The KST oscillator’s mildly bullish weekly and monthly signals provide a counterbalance, hinting at potential short-term rallies or consolidation phases. However, these are not strong enough to offset the dominant bearish trend indicated by other metrics.
Investor Implications and Outlook
For investors, the current technical landscape suggests a cautious approach. The bearish momentum and moving average alignment warn of potential further downside or sideways consolidation in the near term. However, the long-term return profile remains robust, underscoring the company’s underlying strength and growth potential over extended periods.
Traders may look for confirmation of a trend reversal through improved MACD readings, a rise in RSI towards overbought levels, or a bullish crossover in moving averages before considering fresh entries. Conversely, a break below recent lows near ₹820 could signal further weakness.
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Sector and Industry Context
Permanent Magnets Ltd operates within the Other Electrical Equipment sector, a niche segment characterised by specialised manufacturing and technology-driven products. The sector has faced mixed fortunes amid global supply chain disruptions and fluctuating demand patterns. The company’s technical deterioration may partly reflect broader sectoral pressures, although its long-term outperformance relative to the Sensex highlights its competitive positioning.
Investors should weigh sector dynamics alongside company-specific technical signals when making allocation decisions. The current bearish technical trend suggests that while the stock remains a compelling long-term growth story, short-term volatility and downside risks are elevated.
Summary
Permanent Magnets Ltd’s recent technical parameter changes indicate a shift towards a more bearish momentum, with key indicators such as MACD, moving averages, and Bollinger Bands signalling caution. Despite this, oscillators like KST and Dow Theory provide some mildly bullish counterpoints, suggesting potential for short-term relief rallies. The stock’s long-term returns remain impressive, but near-term price action warrants a prudent approach. Investors should monitor technical developments closely, particularly MACD crossovers and RSI movements, to gauge potential trend reversals or further declines.
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