Savita Oil Technologies Ltd Faces Bearish Momentum Amid Mixed Technical Signals

Technical Trend Overview and Price Movement

As of 16 Feb 2026, Savita Oil Technologies Ltd (Stock ID: 535893) closed at ₹357.15, down 2.68% from the previous close of ₹367.00. The stock traded within a range of ₹352.75 to ₹362.00 during the day, reflecting heightened volatility. This price action comes against the backdrop of a 52-week high of ₹474.15 and a low of ₹295.00, indicating the stock is currently closer to its lower band of the annual range.

The recent technical trend has shifted from mildly bearish to outright bearish, signalling increased selling pressure. This shift is corroborated by several key technical indicators, which collectively paint a cautious picture for the near term.

MACD and Momentum Indicators Signal Bearishness

The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly timeframes. The weekly MACD line continues to trade below its signal line, confirming short-term downward momentum. Similarly, the monthly MACD sustains its bearish posture, suggesting that the medium-term trend is also under pressure.

Complementing the MACD, the Know Sure Thing (KST) indicator is bearish on both weekly and monthly charts, reinforcing the momentum loss. This dual confirmation from momentum oscillators indicates that the stock’s price momentum is weakening, which could lead to further downside unless a reversal catalyst emerges.

RSI and Bollinger Bands: Mixed Signals

The Relative Strength Index (RSI) presents a nuanced view. While the weekly RSI currently offers no clear signal, the monthly RSI is bullish, suggesting some underlying strength over the longer term. This divergence between weekly and monthly RSI readings implies that while short-term momentum is weak, the stock may still have some resilience in the broader timeframe.

Bollinger Bands on both weekly and monthly charts are mildly bearish, indicating that the stock price is trending towards the lower band. This typically signals increased volatility and potential downward pressure, but also hints at possible oversold conditions if the price approaches the lower band extremes.

Moving Averages and Volume Trends

Daily moving averages are firmly bearish, with the stock price trading below key averages such as the 50-day and 200-day moving averages. This alignment suggests that the short-term trend is negative and that resistance levels may be difficult to breach in the near term.

On the volume front, the On-Balance Volume (OBV) indicator is mildly bullish on the weekly chart but shows no clear trend on the monthly scale. This mild bullishness in volume could indicate some accumulation by investors despite the price weakness, but it is not strong enough to offset the prevailing bearish technical signals.

Dow Theory and Broader Market Context

According to Dow Theory, the weekly chart shows no definitive trend, while the monthly chart is mildly bullish. This suggests that while short-term price action is indecisive, the longer-term outlook retains some optimism. However, this mild bullishness is overshadowed by the more dominant bearish signals from momentum and moving average indicators.

Comparing Savita Oil Technologies Ltd’s returns against the Sensex reveals a mixed performance. Over the past week, the stock outperformed the Sensex with a 2.03% gain versus the Sensex’s 1.14% loss. However, over longer periods, the stock has underperformed significantly. Year-to-date, the stock is down 6.77% compared to the Sensex’s 3.04% decline, and over one year, it has declined 15.58% while the Sensex gained 8.52%. Over three and five years, the stock has delivered 31.79% and 94.17% returns respectively, trailing the Sensex’s 36.73% and 60.30%. Over a decade, however, Savita Oil Technologies Ltd has outpaced the Sensex with a 285.07% return compared to 259.46%.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Savita Oil Technologies Ltd a Mojo Score of 40.0, categorising it as a Sell. This represents an upgrade from the previous Strong Sell grade issued on 14 May 2025, indicating a slight improvement in the company’s outlook. The Market Cap Grade stands at 3, reflecting a mid-tier market capitalisation within its sector.

The downgrade in technical trend to bearish aligns with the Mojo Grade, signalling that investors should exercise caution. The combination of bearish MACD, moving averages, and KST indicators outweighs the mildly bullish monthly RSI and OBV signals, suggesting that the stock may face continued headwinds in the near term.

Investment Implications and Outlook

For investors, the current technical setup of Savita Oil Technologies Ltd suggests a cautious stance. The bearish momentum indicators and moving averages imply that the stock could continue to face selling pressure in the short to medium term. The mild bullishness in monthly RSI and OBV may offer some support, but these are insufficient to reverse the prevailing downtrend at this stage.

Given the stock’s underperformance relative to the Sensex over the past year and year-to-date, investors should weigh the risks carefully. The recent downgrade from Strong Sell to Sell by MarketsMOJO reflects a modest improvement but still signals a lack of conviction for a sustained recovery.

Long-term investors may find some comfort in the stock’s strong 10-year return of 285.07%, which outpaces the Sensex. However, near-term technical signals caution against aggressive accumulation until clearer signs of trend reversal emerge.

Monitoring key technical levels such as the 52-week low of ₹295.00 and the 50-day moving average resistance will be critical. A sustained break below recent lows could accelerate the bearish trend, while a rebound above moving averages might signal a potential recovery phase.

Conclusion

Savita Oil Technologies Ltd is currently navigating a challenging technical landscape marked by a shift to bearish momentum and mixed indicator signals. While some monthly indicators hint at underlying strength, the dominant weekly and daily technicals suggest caution. Investors should closely monitor momentum oscillators, moving averages, and volume trends to gauge the stock’s next directional move. Until a clear technical turnaround is confirmed, a conservative approach is advisable given the prevailing market conditions and sector dynamics.

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