Sarda Energy & Minerals Ltd Falls 5.57%: 3 Key Factors Driving the Weekly Decline

Jan 24 2026 03:00 PM IST
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Sarda Energy & Minerals Ltd experienced a challenging week, closing at Rs.464.10 on 23 January 2026, down 5.57% from the previous Friday’s close of Rs.491.50. This decline outpaced the Sensex’s 3.31% fall over the same period, reflecting intensified bearish momentum amid technical downgrades and sectoral pressures. The week was marked by a significant technical shift, including the formation of a Death Cross and a downgrade in the company’s Mojo Grade to Sell, signalling growing caution among investors.

Key Events This Week

19 Jan: Stock opens at Rs.488.90 amid broad market weakness

21 Jan: Death Cross formation and Mojo Grade downgraded to Sell

22 Jan: Technical momentum shifts further bearish with subdued price action

23 Jan: Week closes at Rs.464.10, down 5.57% for the week

Week Open
Rs.491.50
Week Close
Rs.464.10
-5.57%
Week High
Rs.488.90
vs Sensex
-2.26%

19 January 2026: Week Opens Amid Market Weakness

Sarda Energy & Minerals Ltd began the week at Rs.488.90, down 0.53% from the previous close. The broader market was also under pressure, with the Sensex declining 0.49% to 36,650.97. Trading volume was moderate at 22,205 shares, reflecting cautious investor sentiment. The stock’s opening reflected early signs of the technical challenges that would dominate the week.

21 January 2026: Death Cross Formation and Mojo Grade Downgrade

The most significant development occurred on 21 January, when Sarda Energy & Minerals Ltd formed a Death Cross, a bearish technical indicator where the 50-day moving average crossed below the 200-day moving average. This event signalled a potential shift to a sustained downtrend. The stock closed at Rs.462.70, down 0.19% on the day, with a sharp intraday decline from a high of Rs.491.20 to a low of Rs.459.75. Volume surged to 52,401 shares, indicating heightened trading activity amid the technical shift.

Concurrently, the company’s Mojo Grade was downgraded from Hold to Sell, with the Mojo Score falling to 46.0. This downgrade reflected deteriorating momentum and growing caution among analysts. The stock’s year-to-date decline of 10.90% contrasted sharply with the Sensex’s 3.57% drop, underscoring the stock’s relative weakness.

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22 January 2026: Bearish Momentum Intensifies

On 22 January, the stock showed marginal recovery, closing at Rs.468.15, up 1.18% on the day, but this was insufficient to reverse the prevailing bearish trend. Volume declined to 19,038 shares, indicating subdued trading interest. Technical indicators remained negative, with the weekly MACD bearish and the monthly MACD mildly bearish. The Relative Strength Index (RSI) remained neutral, suggesting no oversold conditions yet.

Despite the slight uptick, daily moving averages were bearish, and the Know Sure Thing (KST) indicator confirmed the downtrend. The On-Balance Volume (OBV) was bullish on the weekly chart, hinting at some accumulation, but this was not yet reflected in price strength. The Mojo Grade downgrade to Sell continued to weigh on sentiment.

23 January 2026: Week Closes Lower Amid Renewed Selling

The week concluded with the stock closing at Rs.464.10, down 0.87% on the day and 5.57% for the week. Volume remained low at 18,930 shares. The Sensex also declined sharply by 1.33% to 35,609.90, but Sarda Energy underperformed the benchmark by a significant margin. The stock’s technical profile remained bearish, with no immediate signs of reversal. The weekly MACD and KST indicators continued to signal downward momentum, while the RSI remained neutral.

Date Stock Price Day Change Sensex Day Change
2026-01-19 Rs.488.90 -0.53% 36,650.97 -0.49%
2026-01-20 Rs.463.60 -5.17% 35,984.65 -1.82%
2026-01-21 Rs.462.70 -0.19% 35,815.26 -0.47%
2026-01-22 Rs.468.15 +1.18% 36,088.66 +0.76%
2026-01-23 Rs.464.10 -0.87% 35,609.90 -1.33%

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Key Takeaways from the Week

Bearish Technical Signals: The formation of the Death Cross on 21 January marked a critical technical shift, signalling potential sustained weakness. This was reinforced by the downgrade of the Mojo Grade to Sell, reflecting deteriorating momentum and analyst caution.

Underperformance vs Sensex: Sarda Energy & Minerals Ltd declined 5.57% over the week, significantly underperforming the Sensex’s 3.31% fall. This relative weakness highlights the stock’s vulnerability amid broader market pressures.

Mixed Momentum Indicators: While weekly MACD and KST indicators remain bearish, the RSI has stayed neutral, suggesting the stock is not yet oversold. The bullish weekly On-Balance Volume hints at some accumulation, though this has not translated into price strength.

Volume and Volatility: Trading volumes peaked on 21 January during the technical shift but declined thereafter, indicating reduced investor engagement amid uncertainty. Price volatility remained elevated, with intraday swings reflecting market nervousness.

Long-Term Performance Context: Despite recent weakness, Sarda Energy & Minerals Ltd’s long-term returns remain impressive, with cumulative gains exceeding 300% over three years and over 5000% across ten years, far outpacing the Sensex. This underscores the importance of distinguishing short-term technical setbacks from the company’s broader growth trajectory.

Conclusion: A Week Marked by Technical Weakness and Caution

The week ending 23 January 2026 was challenging for Sarda Energy & Minerals Ltd, with the stock falling 5.57% and underperforming the broader market. The emergence of the Death Cross and the Mojo Grade downgrade to Sell have introduced a more cautious technical outlook. While some volume-based indicators suggest selective accumulation, the prevailing momentum remains bearish, and the stock faces headwinds from sectoral and market pressures.

Investors should monitor upcoming price action closely, particularly for signs of stabilisation or reversal in key technical indicators. The stock’s strong long-term performance provides a counterbalance to near-term weakness, but the current environment favours prudence and careful risk management.

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