Quess Corp Gains 0.72%: Technical Momentum Shift and Hold Upgrade Shape the Week

Monday, 2 February: Upgrade to Hold Sparks Mild Optimism

On 2 February 2026, Quess Corp Ltd’s stock price closed at Rs.208.90, up 0.36% from the previous close of Rs.208.15. This modest gain accompanied MarketsMOJO’s upgrade of the stock’s rating from Sell to Hold, reflecting a nuanced reassessment of the company’s fundamentals and technical outlook. The upgrade was driven by strong financial metrics, including a low debt-to-equity ratio of 0.09 times and a robust return on capital employed (ROCE) of 21.09% for the half-year ending December 2025.

Despite these positives, the company faces challenges such as a five-year annualised decline in operating profit of 6.66%. The valuation remains attractive, with a price-to-book ratio of 2.8 and a PEG ratio of 0.1, alongside a high dividend yield of 4.8%. The stock’s recent underperformance relative to the Sensex, which declined 1.03% on the day, underscores the cautious market sentiment.

Monday, 2 February: Technical Momentum Shifts Amid Mixed Signals

The same day also saw a subtle shift in Quess Corp’s technical momentum from bearish to mildly bearish. Weekly indicators such as the MACD and Know Sure Thing (KST) oscillator turned mildly bullish, while monthly indicators remained bearish. The Relative Strength Index (RSI) was bullish on a monthly basis but neutral weekly, indicating a lack of strong short-term directional conviction.

Daily moving averages continued to signal bearishness, with the stock trading below key averages such as the 50-day and 200-day moving averages. Bollinger Bands remained mildly bearish, suggesting ongoing volatility skewed to the downside. On-balance volume readings showed no clear trend, indicating volume was not confirming either buying or selling pressure decisively.

Tuesday, 3 February to Thursday, 5 February: Steady Gains Amid Mixed Market Trends

Quess Corp’s stock continued to gain steadily through the middle of the week. On 3 February, the price rose 1.05% to Rs.211.10, outperforming the Sensex’s 2.63% gain that day. The upward momentum accelerated on 4 February, with the stock climbing 3.15% to Rs.217.75, while the Sensex rose a modest 0.37%. On 5 February, the stock added a further 0.55% to close at Rs.218.95, despite the Sensex declining 0.53%.

This period of gains reflected cautious investor confidence following the upgrade and the improving technical signals on weekly charts. However, the stock remained below its 52-week high of Rs.378.10, indicating that significant upside remains to be realised. Trading volumes peaked on 4 February at 19,616 shares, suggesting increased market interest during the rally.

Friday, 6 February: Sharp Decline Caps the Week

The week ended with a sharp decline on 6 February, as Quess Corp’s stock fell 4.25% to Rs.209.65. This drop contrasted with the Sensex’s modest 0.10% gain, signalling profit-taking or short-term caution among investors. Despite this setback, the stock closed the week with a net gain of 0.72% from the previous Friday’s close of Rs.208.15.

The decline on Friday may reflect the mixed technical signals and the persistent bearish daily moving averages, which continue to weigh on short-term momentum. The stock’s proximity to its 52-week low of Rs.191.00 also suggests that investors remain wary of sustained downside risk.

Key Takeaways

Positive Signals: The upgrade to a Hold rating by MarketsMOJO reflects improving fundamentals, including a strong ROCE of 21.09%, a high dividend yield of 4.8%, and an attractive price-to-book ratio of 2.8. The shift in technical momentum from bearish to mildly bearish on weekly indicators such as MACD and KST suggests tentative stabilisation. The stock outperformed the Sensex on several trading days, demonstrating short-term resilience.

Cautionary Notes: Despite recent gains, the stock remains closer to its 52-week low than its high, highlighting ongoing downside risk. Daily moving averages and Bollinger Bands remain bearish, and volume indicators do not confirm strong buying interest. The sharp decline on the final trading day of the week underscores persistent short-term volatility. Long-term operating profit trends remain negative, with a 6.66% annualised decline over five years.

Conclusion

Quess Corp Ltd’s performance over the week ending 6 February 2026 was characterised by cautious optimism amid mixed signals. The MarketsMOJO upgrade to Hold and improving technical momentum on weekly charts provided support for the stock’s modest 0.72% weekly gain. However, the persistent bearishness in daily indicators and the stock’s proximity to its 52-week low suggest that investors should remain vigilant. The company’s strong financial metrics and attractive valuation offer defensive qualities, but the lack of decisive volume confirmation and longer-term profit challenges temper enthusiasm. Overall, the week’s developments reflect a balanced outlook, with the stock poised for potential gradual recovery if positive trends strengthen in coming weeks.

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