Shakti Pumps (India) Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Trend Overview

As of 6 February 2026, Shakti Pumps’ technical trend has deteriorated from mildly bearish to outright bearish. This shift is underscored by a daily moving average alignment that remains firmly bearish, reflecting sustained downward pressure on the stock price. The current market price stands at ₹621.85, down 2.25% from the previous close of ₹636.15, with intraday trading ranging between ₹619.65 and ₹640.90.

On a broader scale, the stock’s 52-week high of ₹1,047.00 contrasts sharply with its 52-week low of ₹549.00, indicating significant volatility over the past year. Despite this, the recent price momentum has been decidedly negative, with the stock underperforming the benchmark Sensex over multiple timeframes.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a bearish outlook on the weekly chart, signalling that the short-term momentum is weakening relative to the longer-term trend. The monthly MACD, while mildly bearish, suggests that the longer-term downtrend is still intact but not accelerating aggressively. This divergence between weekly and monthly MACD readings highlights a cautious environment where short-term selling pressure is more pronounced.

The Know Sure Thing (KST) indicator aligns with this view, showing bearish momentum on the weekly timeframe and mildly bearish signals monthly. This reinforces the notion that the stock is experiencing a technical slowdown, with momentum indicators converging on a negative outlook.

RSI and Overbought/Oversold Conditions

The Relative Strength Index (RSI) offers a more nuanced perspective. On the weekly chart, RSI currently provides no clear signal, hovering in a neutral zone that neither indicates overbought nor oversold conditions. However, the monthly RSI is bullish, suggesting that despite recent weakness, the stock may still have underlying strength over a longer horizon. This divergence between weekly and monthly RSI readings points to potential short-term volatility but possible medium-term resilience.

Bollinger Bands and Price Volatility

Bollinger Bands on both weekly and monthly charts are mildly bearish, indicating that price volatility is increasing with a downward bias. The stock price is trading closer to the lower band on the weekly scale, which often signals heightened selling pressure but can also precede a technical bounce if oversold conditions develop.

Moving Averages and Daily Price Action

The daily moving averages remain bearish, with the stock price trading below key averages such as the 50-day and 200-day moving averages. This alignment confirms the prevailing downtrend and suggests that any rallies may face resistance near these levels. The bearish crossover of shorter-term averages below longer-term averages further cements the negative technical stance.

Volume analysis via On-Balance Volume (OBV) shows a mildly bearish trend on the weekly chart, indicating that selling volume is slightly outweighing buying interest. However, the monthly OBV shows no clear trend, reflecting uncertainty among longer-term investors.

Dow Theory and Market Sentiment

According to Dow Theory, the weekly signals are mildly bearish, consistent with the broader technical deterioration. Conversely, the monthly Dow Theory reading is mildly bullish, suggesting that while short-term sentiment is weak, the longer-term trend may still hold some positive momentum. This mixed signal underscores the importance of monitoring upcoming price action closely.

Comparative Performance and Market Context

Shakti Pumps’ recent returns have lagged the Sensex significantly. Over the past month, the stock has declined by 15.76%, compared to a 2.49% drop in the Sensex. Year-to-date, the stock is down 14.20%, while the Sensex has fallen by just 2.24%. Over the last year, the underperformance is even more stark, with Shakti Pumps down 37.15% against a 6.44% gain in the benchmark index.

Despite this recent weakness, the stock’s long-term performance remains impressive. Over three years, Shakti Pumps has delivered a staggering 807.95% return, vastly outperforming the Sensex’s 36.94% gain. Similarly, five- and ten-year returns stand at 765.33% and 2,760.22%, respectively, compared to Sensex returns of 64.22% and 238.44%. This long-term outperformance highlights the company’s growth potential, though current technical signals advise caution.

Mojo Score and Analyst Ratings

MarketsMOJO currently assigns Shakti Pumps a Mojo Score of 40.0, categorising the stock as a Sell. This represents a downgrade from the previous Hold rating issued on 6 November 2025. The Market Cap Grade stands at 3, reflecting a mid-tier market capitalisation relative to peers in the Compressors, Pumps & Diesel Engines sector.

The downgrade reflects the deteriorating technical parameters and recent price weakness, signalling that investors should exercise caution. The bearish technical trend, combined with negative momentum indicators, suggests limited upside in the near term.

Investor Takeaway and Outlook

In summary, Shakti Pumps (India) Ltd is currently navigating a challenging technical environment. The shift from mildly bearish to bearish momentum across multiple indicators, including MACD, moving averages, and Bollinger Bands, points to increased downside risk. While the monthly RSI and Dow Theory readings offer some longer-term optimism, the prevailing short-term signals caution against aggressive buying.

Investors should weigh the stock’s impressive long-term returns against the current technical headwinds. Those with a higher risk tolerance may consider monitoring for signs of a technical reversal, such as a bullish MACD crossover or RSI moving out of neutral territory. Conversely, more conservative investors might prefer to await clearer confirmation of trend stabilisation before increasing exposure.

Given the current Sell rating and technical outlook, portfolio managers and traders should remain vigilant and consider alternative opportunities within the sector or broader market.

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