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

Technical Trend Overview and Price Movement

As of 7 January 2026, S H Kelkar & Company Ltd trades at ₹182.30, marginally up from the previous close of ₹182.00. The stock’s 52-week high stands at ₹275.20, while the low is ₹141.50, indicating a wide trading range over the past year. Today’s intraday range has been relatively narrow, with a high of ₹183.65 and a low of ₹181.25, suggesting subdued volatility in the short term.

The technical trend has shifted from outright bearish to mildly bearish, signalling a tentative improvement in price momentum but still reflecting caution among market participants. This shift is corroborated by the daily moving averages, which remain mildly bearish, indicating that while the stock is attempting to stabilise, it has yet to establish a definitive upward trajectory.

MACD and RSI: Divergent Signals

The Moving Average Convergence Divergence (MACD) indicator presents a mixed scenario. On a weekly basis, the MACD remains bearish, suggesting that the stock’s momentum is still under pressure in the near term. However, the monthly MACD has improved to mildly bearish, hinting at a potential easing of downward momentum over a longer horizon.

In contrast, the Relative Strength Index (RSI) offers a more optimistic signal. The weekly RSI is bullish, indicating that recent price gains have strengthened momentum and that the stock may be entering an oversold recovery phase. The monthly RSI, however, shows no clear signal, reflecting a neutral stance that neither confirms nor denies a sustained trend reversal.

Bollinger Bands and KST: Cautious Outlook

Bollinger Bands on both weekly and monthly charts remain mildly bearish, suggesting that price volatility is still skewed towards the downside, albeit less aggressively than before. This aligns with the KST (Know Sure Thing) indicator, which is bearish on a weekly basis and mildly bearish monthly, reinforcing the notion that while the stock is attempting to regain footing, it faces resistance from broader market forces.

Volume and Dow Theory Signals

On-Balance Volume (OBV) readings provide a subtle bullish undertone weekly, indicating that buying interest is gradually increasing. However, the monthly OBV remains mildly bearish, signalling that longer-term volume trends have yet to confirm a sustained uptrend.

Dow Theory assessments add further complexity: weekly signals are mildly bullish, suggesting short-term optimism, whereas monthly signals remain mildly bearish, reflecting a cautious stance on the stock’s longer-term trend.

Comparative Returns and Market Context

When analysing S H Kelkar’s returns relative to the Sensex, the stock has outperformed in the short term but lagged significantly over longer periods. Over the past week, the stock gained 3.79% compared to the Sensex’s 0.46%, and over one month, it surged 10.48% while the Sensex declined by 0.76%. Year-to-date returns also show a modest 1.82% gain against the Sensex’s slight fall of 0.18%.

However, over the one-year horizon, S H Kelkar has underperformed sharply with a negative return of 26.19%, while the Sensex rose 9.10%. Similarly, over three and five years, the stock’s returns of 28.83% and 50.16% respectively lag behind the Sensex’s 42.01% and 76.57%. The ten-year performance is particularly stark, with the stock down 29.56% compared to the Sensex’s robust 234.81% gain.

This disparity highlights the challenges faced by S H Kelkar in sustaining long-term growth momentum despite recent technical improvements.

Mojo Score and Ratings Update

MarketsMOJO’s latest assessment assigns S H Kelkar a Mojo Score of 34.0, categorising it as a Sell. This represents an upgrade from the previous Strong Sell rating issued on 6 January 2026, reflecting the recent technical momentum shift. The Market Cap Grade remains low at 3, consistent with the company’s small-cap status within the Specialty Chemicals sector.

The upgrade to a Sell rating suggests cautious optimism but underscores that significant risks remain. Investors should weigh the mildly bullish weekly RSI and Dow Theory signals against the persistent bearish MACD and KST indicators before making decisions.

Sector and Industry Considerations

S H Kelkar operates within the Specialty Chemicals industry, a sector characterised by cyclical demand and sensitivity to raw material price fluctuations. The sector’s performance often correlates with broader industrial activity and export demand. Given the mixed technical signals and the company’s modest market capitalisation, investors should consider sectoral trends and macroeconomic factors alongside technical analysis.

While the stock’s recent weekly bullish RSI and mildly bullish Dow Theory signals may indicate short-term recovery potential, the persistent bearishness in MACD and KST suggests that the stock has yet to break decisively from its downtrend. This technical ambivalence is reflected in the Mojo Grade’s cautious stance.

Investment Implications and Outlook

For investors, the current technical landscape of S H Kelkar & Company Ltd calls for a balanced approach. The mildly bearish moving averages and Bollinger Bands imply that the stock remains vulnerable to downward pressure, while the weekly bullish RSI and OBV hint at emerging buying interest. The divergence between weekly and monthly indicators suggests that any recovery may be tentative and subject to volatility.

Given the stock’s underperformance relative to the Sensex over longer periods, investors should be wary of relying solely on short-term technical improvements. A comprehensive evaluation incorporating fundamental analysis, sector outlook, and risk tolerance is advisable before committing capital.

In summary, S H Kelkar’s technical parameters have improved from a strongly bearish position to a more nuanced mildly bearish stance, signalling a potential but uncertain shift in momentum. The stock’s modest day change and mixed indicator readings underscore the importance of cautious optimism in the current market environment.

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