Servotech Renewable Power System Ltd Sees Mixed Technical Signals Amid Price Momentum Shift

Price Momentum and Recent Market Performance

On 4 February 2026, Servotech Renewable Power System Ltd closed at ₹84.19, up sharply from the previous close of ₹74.63. The stock’s intraday range was broad, with a low of ₹75.11 and a high of ₹87.88, indicating heightened volatility. This price action marks a significant rebound from the 52-week low of ₹57.51, though it remains well below the 52-week high of ₹168.50. The 12.81% day change is a strong short-term gain, yet the stock’s year-to-date return of 5.87% contrasts with the Sensex’s decline of 1.54%, suggesting relative outperformance in the current market environment.

Over longer horizons, Servotech’s returns have been impressive, with a three-year gain of 264.06% and a five-year surge of 4162.78%, vastly outpacing the Sensex’s respective 44.10% and 73.95% returns. However, the stock’s one-year return remains negative at -40.07%, highlighting recent challenges that have tempered investor enthusiasm.

Technical Indicator Analysis: Mixed Signals

The technical landscape for Servotech is nuanced. The overall technical trend has shifted from bearish to mildly bearish, reflecting a tentative improvement but still signalling caution. The Moving Average Convergence Divergence (MACD) remains bearish on both weekly and monthly charts, indicating that momentum is yet to decisively turn positive. This suggests that despite recent price gains, underlying momentum has not fully recovered.

The Relative Strength Index (RSI) presents a bearish signal on the weekly timeframe, implying that the stock may still be under selling pressure or is vulnerable to further downside. On the monthly scale, the RSI offers no clear signal, indicating a neutral stance over the longer term. This divergence between weekly and monthly RSI readings points to short-term weakness amid longer-term uncertainty.

Bollinger Bands, which measure volatility and potential price extremes, are mildly bearish on both weekly and monthly charts. This suggests that while the stock is not currently oversold or overbought, the price action is skewed slightly towards downside risk. Daily moving averages also reflect a mildly bearish stance, reinforcing the view that the recent price rally may face resistance or consolidation.

Additional Technical Metrics

The Know Sure Thing (KST) indicator, a momentum oscillator, is bearish on the weekly chart but mildly bearish on the monthly chart, further confirming the mixed momentum signals. Meanwhile, Dow Theory readings offer a more optimistic weekly mildly bullish signal, contrasting with a mildly bearish monthly outlook. This divergence highlights the complexity of the stock’s trend dynamics, with short-term technicals showing tentative strength while longer-term indicators remain cautious.

On-Balance Volume (OBV), which tracks buying and selling pressure, is mildly bullish on the weekly timeframe but mildly bearish monthly. This suggests that recent volume trends support the price rally in the short term, but longer-term volume patterns do not confirm a sustained uptrend.

Mojo Score and Market Capitalisation Insights

Servotech Renewable Power System Ltd currently holds a Mojo Score of 37.0, categorised as a Sell rating, an improvement from its previous Strong Sell grade as of 4 August 2025. This upgrade reflects a modest enhancement in the company’s technical and fundamental outlook, though it remains below the threshold for a Hold or Buy recommendation. The market capitalisation grade stands at 3, indicating a relatively small market cap compared to peers in the Other Electrical Equipment sector.

The upgrade in Mojo Grade from Strong Sell to Sell suggests that while the stock is showing signs of stabilisation, significant risks remain. Investors should weigh the recent price momentum against persistent bearish technical signals and the company’s volatile historical performance.

Sector and Industry Context

Operating within the Other Electrical Equipment industry, Servotech faces sector-specific challenges including fluctuating demand for renewable power solutions and competitive pressures from larger players. The sector’s technical indicators often mirror broader market trends, but Servotech’s recent outperformance relative to the Sensex on a one-week and one-month basis highlights its potential as a volatile but opportunistic small-cap stock.

Investors should consider the stock’s technical signals in conjunction with sector dynamics and macroeconomic factors influencing renewable energy adoption and electrical equipment demand.

Investor Takeaway and Outlook

Servotech Renewable Power System Ltd’s recent price momentum and technical trend shift to mildly bearish indicate a tentative recovery phase. However, the persistence of bearish MACD and RSI signals, combined with mildly bearish Bollinger Bands and moving averages, counsel prudence. The divergence between weekly and monthly technical indicators suggests that while short-term traders may find opportunities in the current volatility, longer-term investors should remain cautious until clearer bullish confirmation emerges.

Given the stock’s substantial historical returns over three and five years, Servotech remains a compelling candidate for investors with a higher risk tolerance and a focus on renewable energy growth prospects. Nonetheless, the current technical profile and Mojo Sell rating imply that a measured approach is advisable, with close monitoring of momentum indicators and volume trends.

In summary, Servotech Renewable Power System Ltd is navigating a complex technical landscape marked by mixed signals and a recent price surge. Investors should balance the potential for short-term gains against the underlying bearish momentum and sector-specific risks before committing capital.

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