Salasar Techno Engineering Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Indicators Signal Downturn

The latest technical analysis reveals a predominantly bearish outlook for Salasar Techno Engineering Ltd. The Moving Average Convergence Divergence (MACD) indicator, a critical momentum gauge, shows bearish signals on both weekly and monthly charts, indicating sustained downward pressure. The MACD’s negative crossover suggests that the stock’s short-term momentum is weakening relative to its longer-term trend.

Complementing this, the Relative Strength Index (RSI) remains neutral with no clear signal on weekly and monthly timeframes, hovering in a range that neither indicates overbought nor oversold conditions. This lack of RSI confirmation suggests that while momentum is declining, the stock has not yet reached an extreme level of selling pressure.

Bollinger Bands, which measure volatility and price levels relative to moving averages, have turned bearish on the weekly chart and mildly bearish on the monthly chart. This indicates that the stock price is trending towards the lower band, signalling increased volatility and a potential continuation of the downward trend.

Moving Averages and KST Confirm Bearish Shift

Daily moving averages have crossed into bearish territory, with the current price of ₹8.05 falling below key short- and medium-term averages. This technical alignment typically signals a negative trend and can deter momentum-driven investors.

The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, also confirms bearish momentum on both weekly and monthly charts. This reinforces the view that the stock’s price action is weakening across multiple time horizons.

However, the Dow Theory presents a nuanced picture: while the weekly trend remains mildly bullish, the monthly trend shows no clear direction. This divergence suggests some underlying resilience in the short term, but the absence of a monthly uptrend tempers optimism.

Volume and On-Balance Volume (OBV) Trends

Volume analysis through the On-Balance Volume (OBV) indicator shows no significant trend on the weekly chart and a mildly bearish signal on the monthly chart. This implies that selling pressure is gradually increasing, but not yet at a level that confirms a strong capitulation phase.

Today, the stock traded between ₹7.86 and ₹8.29, closing lower at ₹8.05 compared to the previous close of ₹8.47, marking a day change of -4.96%. This intraday volatility aligns with the bearish technical signals and reflects investor caution.

Performance Comparison with Sensex

Salasar Techno Engineering Ltd’s recent returns have lagged behind the broader market benchmark, the Sensex. Over the past week, the stock declined by 8.31%, significantly underperforming the Sensex’s modest 0.94% drop. The one-month return also reflects a 4.96% loss against the Sensex’s 0.35% decline.

Year-to-date, the stock has fallen 8.94%, while the Sensex has decreased by 2.28%. Over the last year, the disparity is even more pronounced, with Salasar Techno down 21.77% compared to the Sensex’s 9.66% gain. The three-year returns show a negative 10.65% for the stock versus a robust 35.81% rise in the Sensex, highlighting persistent underperformance.

Despite these recent setbacks, the stock’s five-year return remains impressive at 123.64%, outpacing the Sensex’s 59.83% gain. This suggests that while the near-term outlook is challenging, the company has delivered substantial long-term value to investors.

Mojo Score and Grade Downgrade

MarketsMOJO’s proprietary scoring system has downgraded Salasar Techno Engineering Ltd’s Mojo Grade from Hold to Strong Sell as of 16 Feb 2026, reflecting deteriorating fundamentals and technicals. The current Mojo Score stands at a low 28.0, signalling weak overall quality and trend strength. The Market Cap Grade remains at 4, indicating a mid-tier market capitalisation relative to peers.

This downgrade is consistent with the bearish technical indicators and recent price action, suggesting that investors should exercise caution and consider risk management strategies.

Outlook and Investor Considerations

Given the confluence of bearish technical signals, including MACD, moving averages, Bollinger Bands, and KST, the near-term price momentum for Salasar Techno Engineering Ltd appears negative. The absence of strong RSI signals and mixed Dow Theory trends indicate some potential for short-term support, but the overall bias remains downward.

Investors should weigh these technical factors alongside fundamental considerations and broader market conditions. The stock’s significant underperformance relative to the Sensex over multiple timeframes raises concerns about its resilience in a volatile environment.

Summary

Salasar Techno Engineering Ltd’s technical parameters have shifted decisively towards a bearish stance, with multiple momentum indicators confirming weakening price action. The downgrade to a Strong Sell Mojo Grade underscores the growing risks facing the stock. While the company’s long-term returns remain strong, recent underperformance relative to the Sensex and deteriorating technicals suggest investors should approach with caution.

Monitoring key support levels near the 52-week low of ₹6.89 and observing any reversal in volume or momentum indicators will be critical for assessing potential recovery. Until then, the prevailing technical signals advocate a defensive posture.

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