Punjab Chemicals & Crop Protection Ltd Shows Mixed Technical Signals Amid Mild Bullish Momentum

Technical Trend Overview and Price Movement

As of 20 Jan 2026, Punjab Chemicals & Crop Protection Ltd (stock code 346062) closed at ₹1,062.25, down marginally by 0.54% from the previous close of ₹1,068.05. The stock traded within a range of ₹1,057.50 to ₹1,070.00 during the day, reflecting moderate intraday volatility. The 52-week high stands at ₹1,664.95, while the 52-week low is ₹669.55, indicating a wide trading band over the past year.

The technical trend has transitioned from a sideways pattern to a mildly bullish one, signalling a potential shift in investor sentiment. This change is supported by daily moving averages that have turned mildly bullish, suggesting that short-term momentum is gaining some upward traction despite recent price declines.

MACD and Momentum Indicators: Mixed Signals

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains bearish, indicating that the medium-term momentum is still under pressure. However, the monthly MACD has turned bullish, signalling that the longer-term trend may be improving. This divergence between weekly and monthly MACD readings suggests that while short-term selling pressure persists, the stock could be laying the groundwork for a more sustained recovery.

Similarly, the Know Sure Thing (KST) indicator aligns with this mixed momentum. The weekly KST remains bearish, but the monthly KST has shifted to bullish, reinforcing the notion of a longer-term positive trend emerging despite near-term weakness.

RSI and Bollinger Bands: Neutral to Bearish Outlook

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, leaving room for directional movement based on upcoming market catalysts.

Conversely, Bollinger Bands on both weekly and monthly timeframes remain bearish. The stock price is trading near the lower band, which often suggests increased volatility and potential downside risk. This bearish stance from Bollinger Bands tempers the optimism from moving averages and monthly MACD, signalling that caution is warranted.

Volume and Trend Confirmation

On-Balance Volume (OBV) analysis shows no clear trend on a weekly basis but indicates a mildly bullish trend monthly. This suggests that while recent trading volumes have not decisively supported a strong directional move, longer-term accumulation may be occurring. The Dow Theory readings add further complexity, with no clear weekly trend and a mildly bearish monthly outlook, reflecting the stock’s struggle to establish a definitive trend.

Comparative Performance and Market Context

Punjab Chemicals’ recent returns have lagged the broader Sensex benchmark across short-term periods. Over the past week, the stock declined by 3.04%, compared to the Sensex’s modest 0.75% drop. The one-month performance is more pronounced, with Punjab Chemicals falling 15.02% against the Sensex’s 1.98% decline. Year-to-date, the stock is down 12.87%, while the Sensex has decreased by 2.32%.

However, over longer horizons, Punjab Chemicals has delivered respectable returns. The one-year return stands at 7.82%, slightly below the Sensex’s 8.65%. Over three years, the stock has gained 3.40%, trailing the Sensex’s 36.79% surge. The five-year return of 36.45% also lags the Sensex’s 68.52%. Notably, the ten-year return is an impressive 615.80%, significantly outperforming the Sensex’s 240.06%, highlighting the company’s strong long-term growth trajectory despite recent volatility.

Mojo Score Upgrade and Ratings

MarketsMOJO has upgraded Punjab Chemicals & Crop Protection Ltd’s Mojo Grade from Sell to Hold as of 10 Sep 2025, reflecting improved technical and fundamental outlooks. The current Mojo Score stands at 61.0, indicating moderate confidence in the stock’s prospects. The Market Cap Grade is 3, categorising the company as a mid-cap entity within the pesticides and agrochemicals sector.

This upgrade signals that while the stock is not yet a strong buy, it has moved out of the sell zone, suggesting that investors should monitor developments closely for potential entry points as technical momentum improves.

Moving Averages and Daily Technicals

Daily moving averages have turned mildly bullish, with short-term averages crossing above longer-term ones, signalling a nascent upward momentum. This is a positive technical development that could attract momentum traders and short-term investors looking for early signs of trend reversal.

Nevertheless, the overall technical picture remains mixed, with weekly and monthly indicators showing both bullish and bearish signals. This calls for a balanced approach, weighing the potential for recovery against ongoing risks from broader market volatility and sector-specific challenges.

Investor Takeaway and Outlook

Punjab Chemicals & Crop Protection Ltd is currently navigating a complex technical landscape. The shift from a sideways to a mildly bullish trend, supported by daily moving averages and monthly MACD, suggests that the stock may be poised for a gradual recovery. However, bearish weekly MACD, Bollinger Bands, and mixed volume trends indicate that caution remains prudent.

Investors should consider the stock’s relative underperformance in the short term against the Sensex and sector peers, balanced by its strong long-term returns and recent Mojo Grade upgrade. The current Hold rating reflects this nuanced view, recommending monitoring for confirmation of sustained bullish momentum before committing significant capital.

Given the volatility and mixed signals, a measured approach with attention to technical breakouts and fundamental developments in the pesticides and agrochemicals sector is advisable. The stock’s wide trading range over the past year offers potential entry points for those with a higher risk tolerance and a long-term investment horizon.

Summary of Key Technical Indicators:

• MACD: Weekly Bearish, Monthly Bullish


• RSI: Neutral on Weekly and Monthly


• Bollinger Bands: Bearish on Weekly and Monthly


• Moving Averages: Daily Mildly Bullish


• KST: Weekly Bearish, Monthly Bullish


• Dow Theory: Weekly No Trend, Monthly Mildly Bearish


• OBV: Weekly No Trend, Monthly Mildly Bullish

These mixed signals underscore the importance of a cautious, data-driven investment strategy in the near term.

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