Shalimar Paints Ltd. Technical Momentum Shifts Amid Bearish Sentiment

Technical Trend Overview and Price Movement

As of 10 Feb 2026, Shalimar Paints is trading at ₹64.75, up from the previous close of ₹62.83, marking a daily increase of 3.06%. The stock’s intraday range has been relatively narrow, with a low of ₹63.46 and a high of ₹65.00. However, this price remains significantly below its 52-week high of ₹138.50, underscoring the persistent downtrend over the past year.

The technical trend has shifted from bearish to mildly bearish, indicating a tentative attempt at stabilisation but no definitive reversal. This is corroborated by the daily moving averages, which continue to signal a mildly bearish momentum, suggesting that short-term price averages remain below longer-term averages, a classic sign of downward pressure.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD is mildly bullish, hinting at some positive momentum building in the short term. Conversely, the monthly MACD remains bearish, reflecting the longer-term downtrend that has dominated the stock’s price action.

This divergence between weekly and monthly MACD readings suggests that while there may be short-term rallies or technical bounces, the overarching trend remains negative. Investors should be cautious, as the monthly bearish MACD indicates that the stock has yet to establish a sustainable upward trajectory.

RSI and Overbought/Oversold Conditions

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This absence of an overbought or oversold condition implies that the stock is neither excessively bought nor sold, which can sometimes precede a significant move but does not provide directional clarity at present.

Given the RSI’s neutrality, traders may need to rely on other indicators or fundamental catalysts to gauge future price direction.

Bollinger Bands and Volatility Assessment

Bollinger Bands on both weekly and monthly timeframes are mildly bearish, indicating that the stock price is trending towards the lower band. This suggests increased volatility with a downward bias, consistent with the broader technical outlook. The proximity to the lower band often signals potential support, but in this case, the mild bearishness implies that the support may be weak or temporary.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator presents a similar dichotomy to the MACD. Weekly KST is mildly bullish, suggesting some short-term positive momentum, while the monthly KST remains bearish, reinforcing the longer-term downtrend. This split further emphasises the stock’s current technical uncertainty.

Dow Theory analysis shows a weekly mildly bearish trend, with no clear monthly trend established. This indicates that the stock is struggling to form a consistent pattern of higher highs and higher lows, which is essential for a confirmed uptrend.

On the volume front, the On-Balance Volume (OBV) indicator shows no clear trend on the weekly chart but is mildly bullish on the monthly chart. This mild bullishness in OBV suggests that longer-term accumulation may be occurring, although it has not yet translated into a sustained price rally.

Comparative Performance: Shalimar Paints vs Sensex

Shalimar Paints’ returns have lagged significantly behind the benchmark Sensex over multiple time horizons. Over the past week, the stock outperformed the Sensex with a 6.51% gain versus the index’s 2.94%. However, this short-term strength is overshadowed by longer-term underperformance.

Over one month, Shalimar Paints declined by 6.44%, while the Sensex gained 0.59%. Year-to-date, the stock has risen 4.94%, outperforming the Sensex’s negative 1.36%. Yet, over one year, the stock has plummeted 52.37%, in stark contrast to the Sensex’s 7.97% gain. The three-year and five-year returns are even more telling, with Shalimar Paints down 55.70% and 39.49% respectively, while the Sensex surged 38.25% and 63.78% over the same periods.

Even on a decade-long basis, Shalimar Paints has declined 15.01%, whereas the Sensex has delivered an extraordinary 249.97% return, highlighting the stock’s persistent struggles relative to the broader market.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Shalimar Paints a Mojo Score of 9.0, categorising it as a Strong Sell. This represents a downgrade from the previous Sell rating issued on 23 Apr 2024. The Market Cap Grade stands at 4, reflecting the company’s micro-cap status and limited market capitalisation.

The downgrade to Strong Sell is consistent with the technical indicators signalling ongoing weakness and the company’s poor relative performance. Investors should exercise caution and consider the risks associated with holding this stock amid uncertain technical momentum and fundamental challenges.

Outlook and Investor Considerations

While short-term technical indicators such as weekly MACD and KST show mild bullishness, the dominant monthly signals remain bearish, indicating that the stock is still entrenched in a downtrend. The neutral RSI readings and mildly bearish Bollinger Bands suggest limited momentum and heightened volatility, which may result in choppy price action.

Investors should weigh these technical signals against the company’s fundamental challenges and poor relative performance versus the Sensex. The downgrade to a Strong Sell rating by MarketsMOJO further emphasises the cautious stance warranted at this juncture.

For those considering exposure to the paints sector, it may be prudent to explore alternative stocks with stronger technical momentum and more favourable fundamental profiles, as identified by analytical tools such as SwitchER.

Summary

Shalimar Paints Ltd. is currently navigating a complex technical landscape characterised by mixed momentum signals. Despite a recent uptick in price and some short-term bullish indicators, the prevailing monthly trends and relative underperformance suggest that the stock remains vulnerable. The Strong Sell Mojo Grade and ongoing bearish technical signals counsel prudence for investors, who may benefit from monitoring the stock closely or considering superior alternatives within the sector.

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