Shakti Pumps (India) Ltd Faces Technical Momentum Shift Amid Bearish Signals

Current Price Action and Market Context

As of 22 Jan 2026, Shakti Pumps closed at ₹645.20, down from the previous close of ₹660.20. The stock traded within a range of ₹636.35 to ₹662.25 during the day, reflecting heightened volatility. This movement comes against a backdrop of a 52-week high of ₹1,207.00 and a low of ₹549.00, indicating the stock remains closer to its lower band in the annual range. The day’s 2.27% decline adds to a broader negative trend observed over recent weeks and months.

Technical Trend Overview

The technical trend for Shakti Pumps has shifted from outright bearish to mildly bearish, signalling a tentative easing of downward pressure but no definitive reversal. This nuanced stance is supported by mixed signals from various technical indicators:

• MACD: The Moving Average Convergence Divergence (MACD) indicator presents a mildly bullish signal on the weekly chart, suggesting some short-term positive momentum. However, the monthly MACD remains mildly bearish, indicating that longer-term momentum is still under pressure.
• RSI: The Relative Strength Index (RSI) shows no clear signal on both weekly and monthly timeframes, hovering in a neutral zone that neither confirms overbought nor oversold conditions.
• Bollinger Bands: Both weekly and monthly Bollinger Bands indicate bearishness, with the price likely trading near or below the lower band, signalling potential downward volatility and pressure.
• Moving Averages: Daily moving averages remain bearish, with the stock price trading below key averages such as the 50-day and 200-day moving averages, reinforcing the short-term downtrend.
• KST (Know Sure Thing): The weekly KST is bearish, while the monthly KST is mildly bearish, further confirming subdued momentum across multiple timeframes.
• Dow Theory: Weekly Dow Theory analysis is mildly bearish, while the monthly perspective shows no clear trend, reflecting uncertainty in the broader market structure.
• On-Balance Volume (OBV): Interestingly, OBV readings are mildly bullish on the weekly chart and bullish on the monthly chart, suggesting that despite price weakness, accumulation by investors may be occurring, which could provide a foundation for future price support.

Comparative Performance Against Sensex

Shakti Pumps’ recent returns have underperformed the benchmark Sensex across short and medium-term periods. Over the past week, the stock declined by 9.37%, significantly worse than the Sensex’s 1.77% fall. The one-month and year-to-date returns also lag, with losses of 10.82% and 10.98% respectively, compared to Sensex declines of 3.56% and 3.89%. Over the one-year horizon, the stock’s return is deeply negative at -44.14%, while the Sensex gained 8.01%.

However, the long-term picture is markedly different. Over three, five, and ten years, Shakti Pumps has delivered extraordinary returns of 843.54%, 915.40%, and 2,545.32% respectively, vastly outperforming the Sensex’s 35.12%, 65.06%, and 241.83% gains. This highlights the company’s strong growth trajectory over the long haul despite recent setbacks.

Mojo Score and Rating Revision

MarketsMOJO has downgraded Shakti Pumps from a Hold to a Sell rating as of 6 Nov 2025, reflecting deteriorating technical and fundamental conditions. The current Mojo Score stands at 41.0, categorised as Sell, signalling caution for investors. The Market Cap Grade is 3, indicating a mid-tier market capitalisation within its sector.

This downgrade aligns with the technical indicators’ bearish tilt and the stock’s underperformance relative to the broader market. Investors should weigh these signals carefully, especially given the daily moving averages’ bearish stance and the persistent pressure from Bollinger Bands and KST indicators.

Sector and Industry Context

Operating within the Compressors, Pumps & Diesel Engines sector, Shakti Pumps faces cyclical and demand-driven challenges. The sector has been impacted by fluctuating industrial activity and raw material cost pressures, which have weighed on earnings and investor sentiment. The stock’s technical weakness partly reflects these macroeconomic headwinds, though the mildly bullish OBV readings hint at selective investor interest possibly anticipating a sector recovery.

Technical Outlook and Investor Considerations

From a technical perspective, the mixed signals warrant a cautious approach. The mildly bullish weekly MACD and OBV suggest some short-term buying interest, but the dominant bearish signals from moving averages, Bollinger Bands, and KST indicate that the stock remains vulnerable to further downside. The absence of clear RSI signals implies that the stock is not yet oversold, leaving room for additional price erosion.

Investors should monitor key support levels near the 52-week low of ₹549.00 and watch for any sustained break above daily moving averages to signal a potential trend reversal. Until then, the technical environment remains challenging.

Long-Term Investment Perspective

Despite recent technical setbacks, Shakti Pumps’ exceptional long-term returns underscore its potential as a growth stock within its sector. The company’s ability to generate returns exceeding 800% over five years and over 2,500% in a decade highlights strong operational execution and market positioning. However, the current technical and fundamental signals suggest that investors should remain vigilant and consider risk management strategies in the near term.

For those with a longer investment horizon, monitoring the evolution of technical indicators such as MACD and OBV for confirmation of a sustained uptrend will be crucial before committing additional capital. Meanwhile, the downgrade to Sell and the bearish daily moving averages counsel prudence.

Conclusion

Shakti Pumps (India) Ltd is navigating a complex technical landscape marked by a shift from bearish to mildly bearish momentum, with mixed signals from key indicators. The downgrade to a Sell rating by MarketsMOJO and the stock’s underperformance relative to the Sensex highlight near-term challenges. However, mildly bullish volume indicators and strong long-term returns offer a nuanced view that may appeal to selective investors willing to tolerate volatility.

Careful monitoring of technical developments and sector dynamics will be essential for investors seeking to capitalise on potential recovery signals while managing downside risks.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →