S H Kelkar & Company Ltd Sees Technical Momentum Shift Amid Mixed Market Signals

Technical Momentum and Price Action Overview

On 9 Feb 2026, S H Kelkar & Company Ltd’s stock closed at ₹168.60, up from the previous close of ₹161.15, marking a daily gain of 4.62%. The intraday range saw a low of ₹156.85 and a high of ₹169.70, indicating increased volatility and buying interest. However, the stock remains significantly below its 52-week high of ₹275.20, while comfortably above its 52-week low of ₹135.35.

The recent price momentum shift from a strongly bearish to a mildly bearish technical trend suggests a tentative recovery, but one that remains cautious. This is reflected in the daily moving averages, which continue to signal a mildly bearish stance, indicating that while short-term selling pressure has eased, the overall trend has yet to fully reverse.

MACD and RSI: Divergent Signals

The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly timeframes, signalling that the underlying momentum is still weak. The weekly MACD line continues to trade below its signal line, suggesting that the bears retain control in the medium term. Similarly, the monthly MACD confirms this bearish momentum, implying that any rally may face resistance unless accompanied by stronger volume and price action.

Conversely, the Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in a neutral zone. This lack of extreme overbought or oversold conditions suggests that the stock is consolidating and may be poised for a directional move once a catalyst emerges. The neutral RSI also indicates that the stock is not yet in a recovery phase strong enough to attract momentum traders aggressively.

Bollinger Bands and Moving Averages: Mild Bearishness Persists

Bollinger Bands on weekly and monthly charts are mildly bearish, with the stock price trading near the lower band on the weekly timeframe. This positioning often signals increased downside risk but can also indicate potential for a short-term bounce if volatility contracts. The daily moving averages reinforce this mildly bearish outlook, with the 50-day moving average still above the current price, acting as resistance.

Other Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) oscillator remains bearish on the weekly chart and mildly bearish on the monthly chart, aligning with the MACD’s negative momentum. Dow Theory analysis shows a mildly bearish trend on the weekly timeframe but no clear trend on the monthly scale, reflecting uncertainty in the broader market context for this stock.

Interestingly, the On-Balance Volume (OBV) indicator is mildly bullish on the weekly chart, suggesting that volume flow is somewhat supportive of the recent price gains. However, the monthly OBV shows no clear trend, indicating that longer-term accumulation or distribution is not decisively in favour of bulls or bears.

Comparative Returns and Market Context

When compared with the Sensex, S H Kelkar & Company Ltd’s returns have been mixed. Over the past week, the stock outperformed the Sensex significantly, delivering a 15.96% return versus the benchmark’s 1.59%. However, over the one-month and year-to-date periods, the stock underperformed, declining 7.34% and 5.84% respectively, compared to Sensex losses of 1.74% and 1.92%. The one-year return is particularly weak at -22.12%, contrasting with the Sensex’s 7.07% gain.

Longer-term returns over three and five years show moderate gains of 37.30% and 35.15%, though these lag the Sensex’s 38.13% and 64.75% respectively. The 10-year return is negative at -33.83%, while the Sensex has surged 239.52% over the same period, highlighting the stock’s relative underperformance in the broader market context.

Mojo Score and Ratings Update

MarketsMOJO’s latest assessment assigns S H Kelkar & Company Ltd a Mojo Score of 34.0, reflecting a Sell rating. This represents an upgrade from the previous Strong Sell grade issued on 6 Feb 2026, signalling a slight improvement in the company’s outlook. The Market Cap Grade remains low at 3, indicating limited market capitalisation strength relative to peers.

The upgrade to a Sell rating from Strong Sell suggests that while the stock’s technical and fundamental conditions remain challenging, some stabilisation is underway. Investors should note that the mildly bearish technical trend and mixed momentum indicators warrant caution, and any upside may be capped without a clear catalyst.

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 regulatory pressures. The sector’s cyclical nature means that technical momentum shifts often precede fundamental changes. The current mildly bearish technical stance may reflect broader sector consolidation after recent volatility.

Investors should monitor sector trends closely, as a sustained recovery in specialty chemicals demand could provide a tailwind for the stock. Conversely, any deterioration in global chemical markets or input cost inflation could exacerbate the bearish momentum.

Outlook and Investor Considerations

In summary, S H Kelkar & Company Ltd’s recent technical parameter changes indicate a tentative shift from strong bearishness to a more neutral, mildly bearish stance. The stock’s 4.62% daily gain on 9 Feb 2026 is encouraging but must be weighed against persistent bearish signals from MACD, KST, and moving averages. The neutral RSI and mildly bullish OBV on weekly charts offer some hope for a stabilisation phase.

Investors should remain vigilant for confirmation of a sustained trend reversal, ideally supported by stronger volume and positive fundamental news. Given the stock’s underperformance relative to the Sensex over multiple timeframes, a cautious approach is warranted until technical indicators align more decisively with a bullish outlook.

Technical Summary for Investors

To recap, the key technical indicators for S H Kelkar & Company Ltd as of early February 2026 are:

• MACD: Bearish on weekly and monthly charts
• RSI: Neutral on weekly and monthly charts, no clear signal
• Bollinger Bands: Mildly bearish on weekly and monthly timeframes
• Moving Averages: Daily trend mildly bearish, resistance near ₹170
• KST: Bearish weekly, mildly bearish monthly
• Dow Theory: Mildly bearish weekly, no trend monthly
• OBV: Mildly bullish weekly, no trend monthly

These mixed signals suggest a stock in consolidation, with potential for either a recovery or further correction depending on upcoming market catalysts and sector dynamics.

Final Thoughts

While the recent technical parameter change offers a glimmer of hope for S H Kelkar & Company Ltd, the overall picture remains cautious. The stock’s relative underperformance against the Sensex and persistent bearish momentum indicators counsel prudence. Investors with a higher risk tolerance may consider selective accumulation on dips, but a clear trend reversal confirmation is advisable before committing significant capital.

Monitoring volume trends, sector developments, and broader market sentiment will be crucial in the coming weeks to gauge whether this mildly bearish phase evolves into a sustainable uptrend or reverts to renewed weakness.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →