S H Kelkar & Company Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Momentum Shifts to Bearish Territory

The technical landscape for S H Kelkar & Company Ltd has shifted from mildly bearish to outright bearish, underscoring growing downside pressure. The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, remains bearish on both weekly and monthly charts, signalling sustained negative momentum. This is compounded by the daily moving averages which also reflect a bearish trend, indicating that short-term price action is aligned with the longer-term downtrend.

Meanwhile, the Relative Strength Index (RSI) on weekly and monthly timeframes shows no clear signal, hovering in neutral zones without indicating oversold or overbought conditions. This suggests that while momentum is negative, the stock is not yet in an extreme technical state, leaving room for further downside or consolidation.

Bollinger Bands and Other Indicators Confirm Downtrend

Bollinger Bands, which measure volatility and price levels relative to moving averages, are signalling bearishness on the weekly chart and mildly bearish conditions monthly. The stock price has been trading near the lower band on the weekly scale, indicating selling pressure and potential continuation of the downtrend. The Know Sure Thing (KST) indicator presents a mixed picture: mildly bullish on the weekly timeframe but mildly bearish monthly, reflecting short-term attempts at recovery overshadowed by longer-term weakness.

Dow Theory assessments align with this view, showing a mildly bearish trend weekly and no clear trend monthly, highlighting uncertainty but a prevailing negative bias. On-Balance Volume (OBV) is neutral weekly but mildly bullish monthly, suggesting that while volume trends do not strongly support the price decline in the short term, there is some accumulation over the longer horizon.

Price Performance and Market Context

From a price perspective, S H Kelkar & Company Ltd’s current price of ₹150.10 is significantly below its 52-week high of ₹275.20, marking a steep decline of approximately 45.5%. The 52-week low stands at ₹135.35, indicating the stock is closer to its lower range, which may act as a support level in the near term.

Comparing returns with the broader Sensex index reveals underperformance across most periods. Over the past week, the stock has fallen 8.56% compared to a 1.74% decline in the Sensex. Year-to-date, the stock is down 16.17%, while the Sensex has declined by 3.46%. Over one year, the stock has lost 14.79%, contrasting with the Sensex’s 10.29% gain. Even over longer horizons such as five and ten years, S H Kelkar & Company Ltd has lagged significantly, with a 10-year return of -36.40% versus the Sensex’s robust 258.10% gain.

Mojo Score and Grade Reflect Elevated Risk

MarketsMOJO’s proprietary Mojo Score for S H Kelkar & Company Ltd currently stands at 28.0, a level that corresponds with a Strong Sell rating. This represents a downgrade from the previous Sell grade issued on 25 Feb 2026, signalling increased caution among analysts. The Market Cap Grade is rated 3, indicating a mid-tier market capitalisation that may limit liquidity and investor interest relative to larger peers.

The downgrade reflects the deteriorating technical indicators and weak price momentum, suggesting that investors should be wary of further downside risks. The combination of bearish MACD, moving averages, and Bollinger Bands, alongside the stock’s underperformance relative to the Sensex, paints a challenging outlook for the near term.

Sector and Industry Considerations

Operating within the Specialty Chemicals sector, S H Kelkar & Company Ltd faces sector-specific headwinds including raw material cost volatility and competitive pressures. While the sector has shown resilience in certain pockets, the company’s technical and fundamental metrics indicate it is currently underperforming its industry peers. Investors may want to consider these factors when evaluating the stock’s risk-reward profile.

Investor Takeaway and Outlook

Given the current technical signals and fundamental backdrop, S H Kelkar & Company Ltd appears to be in a phase of heightened risk with bearish momentum dominating. The stock’s proximity to its 52-week low and weak relative performance against the Sensex suggest limited near-term upside. Investors should closely monitor key technical levels and broader market conditions before considering new positions.

For those already holding the stock, it may be prudent to reassess portfolio exposure in light of the Strong Sell rating and deteriorating technical indicators. Conversely, investors seeking exposure to the Specialty Chemicals sector might explore alternative stocks with stronger technical and fundamental profiles.

Overall, the combination of bearish MACD, moving averages, and Bollinger Bands, alongside a downgraded Mojo Grade, underscores a cautious stance on S H Kelkar & Company Ltd at present.

Summary of Key Technical Indicators:

• MACD: Weekly and Monthly - Bearish
• RSI: Weekly and Monthly - Neutral (No Signal)
• Bollinger Bands: Weekly - Bearish; Monthly - Mildly Bearish
• Moving Averages (Daily): Bearish
• KST: Weekly - Mildly Bullish; Monthly - Mildly Bearish
• Dow Theory: Weekly - Mildly Bearish; Monthly - No Trend
• OBV: Weekly - No Trend; Monthly - Mildly Bullish

Price Range: ₹149.15 (today’s low) to ₹155.35 (today’s high), closing at ₹150.10

52-Week Range: ₹135.35 (low) to ₹275.20 (high)

Comparative Returns vs Sensex:

• 1 Week: -8.56% vs -1.74%
• 1 Month: +5.26% vs +0.91%
• Year-to-Date: -16.17% vs -3.46%
• 1 Year: -14.79% vs +10.29%
• 3 Years: +36.02% vs +38.36%
• 5 Years: +25.19% vs +61.20%
• 10 Years: -36.40% vs +258.10%

Investors should weigh these technical and fundamental factors carefully when considering S H Kelkar & Company Ltd in their portfolios.

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