Key Events This Week
2 Feb: Stock plunges 5.30% amid broader market weakness
3 Feb: Golden Cross formation signals potential bullish breakout
4 Feb: MarketsMOJO upgrades rating to Hold on technical and valuation improvements
6 Feb: Week closes at Rs.334.60, up 4.56% for the week
2 February 2026: Sharp Decline Amid Market Weakness
Sheetal Cool Products Ltd opened the week on a weak note, closing at Rs.303.05, down 5.30% from the previous Friday’s close of Rs.320.00. This decline was sharper than the Sensex’s 1.03% drop to 35,814.09, reflecting heightened selling pressure on the stock. The volume was relatively low at 1,141 shares, indicating limited trading interest during the sell-off. The broader market weakness likely contributed to the stock’s underperformance on this day.
3 February 2026: Golden Cross Formation Spurs Strong Rebound
The stock rebounded sharply on 3 February, gaining 5.59% to close at Rs.320.00, significantly outperforming the Sensex’s 2.63% rise to 36,755.96. This rally coincided with the formation of a Golden Cross, a key technical indicator where the 50-day moving average crossed above the 200-day moving average. This event is widely regarded as a bullish signal, suggesting a potential trend reversal and renewed upward momentum for the stock.
The Golden Cross was supported by other positive technical indicators, including a bullish MACD on the weekly chart and mildly bullish Bollinger Bands on weekly and monthly timeframes. These signals collectively point to strengthening momentum and improving investor sentiment. The volume surged to 9,948 shares, reflecting increased market participation following the technical breakout.
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4 February 2026: Upgrade to Hold Reflects Technical and Valuation Improvements
On 4 February, Sheetal Cool Products Ltd continued its upward trajectory, closing at Rs.330.35, up 3.23% on the day, while the Sensex gained a modest 0.37% to 36,890.21. This rise followed the announcement of an upgrade in the company’s investment rating from 'Sell' to 'Hold' by MarketsMOJO, effective 3 February 2026.
The upgrade was driven by improved technical momentum, including bullish MACD and Bollinger Bands, and an attractive valuation profile. The stock’s Enterprise Value to Capital Employed (EV/CE) ratio stood at a low 1.9, signalling undervaluation relative to FMCG peers. Additionally, the company’s Return on Capital Employed (ROCE) was a robust 17.78%, highlighting efficient capital utilisation despite recent financial challenges.
However, the financial trend remains subdued, with a 28.48% year-on-year contraction in six-month PAT and declining sales over the past five years. Institutional ownership has also decreased, reflecting cautious sentiment among sophisticated investors. The upgrade to Hold thus reflects a balanced view acknowledging technical and valuation improvements amid ongoing fundamental headwinds.
5 February 2026: Modest Gains Amid Market Volatility
Sheetal Cool Products Ltd edged higher by 1.27% to Rs.334.55 on 5 February, while the Sensex declined 0.53% to 36,695.11. The stock’s resilience amid a weaker market suggests some consolidation of the recent bullish momentum. However, trading volume was thin at 349 shares, indicating limited conviction behind the move.
6 February 2026: Week Ends with Marginal Gain
The week closed with the stock virtually unchanged at Rs.334.60, a 0.01% gain on the day, outperforming the Sensex’s 0.10% rise to 36,730.20. The low volume of 262 shares suggests subdued trading interest as investors digest the week’s developments. The stock ended the week 4.56% higher than the previous Friday’s close, comfortably outperforming the Sensex’s 1.51% gain.
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Daily Price Performance: Sheetal Cool Products Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.303.05 | -5.30% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.320.00 | +5.59% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.330.35 | +3.23% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.334.55 | +1.27% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.334.60 | +0.01% | 36,730.20 | +0.10% |
Key Takeaways
Positive Signals: The formation of the Golden Cross on 3 February marked a significant technical milestone, signalling a potential bullish breakout. This was supported by bullish MACD and Bollinger Bands, as well as a strong ROCE of 17.78%, indicating efficient capital use. The MarketsMOJO upgrade to Hold reflects improved technical momentum and attractive valuation metrics, with an EV/CE ratio of 1.9 suggesting undervaluation relative to peers.
Cautionary Notes: Despite technical improvements, the company’s financial performance remains under pressure, with a 28.48% decline in six-month PAT and contracting sales over five years. Institutional ownership has declined to near zero, indicating waning confidence among sophisticated investors. The stock’s micro-cap status and relatively low liquidity add to the risk profile. Some momentum indicators such as RSI and Dow Theory remain neutral, suggesting the trend is not yet fully confirmed.
Conclusion
Sheetal Cool Products Ltd’s week was characterised by a strong technical rebound and a positive rating upgrade, which helped the stock outperform the Sensex by over 3 percentage points. The Golden Cross formation and improved valuation metrics provide encouraging signs of a potential trend reversal after a prolonged period of underperformance. However, ongoing financial challenges and subdued institutional interest counsel a cautious stance. Investors should monitor the sustainability of the technical momentum alongside fundamental developments before considering a more decisive position in the stock.
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