Key Events This Week
2 Feb: Mojo Grade upgraded to Hold amid mixed financial and technical signals
2 Feb: Technical momentum shifts to mildly bearish with 4.06% price drop
4 Feb: Technical momentum shifts back to mildly bullish with 2.40% gain
6 Feb: Week closes at Rs.221.70, down 1.69% for the week
Monday, 2 February: Rating Upgrade Amid Mixed Signals
On 2 February, Shipping Corporation of India Ltd’s Mojo Grade was upgraded from Sell to Hold by MarketsMOJO, reflecting a nuanced assessment of the company’s valuation, financial trends, and technical indicators. Despite a 4.06% decline in the stock price to Rs.216.35, the upgrade acknowledged SCI’s attractive valuation metrics, including a dividend yield of 4.4% and a low Debt to EBITDA ratio of 1.37 times, signalling manageable leverage.
However, the company’s recent financial performance showed profit declines of 21.5% year-on-year in Q2 FY25-26 and rising interest expenses by 55.24%, which tempered enthusiasm. Technical indicators shifted from mildly bullish to mildly bearish, with bearish MACD and Bollinger Bands on weekly and monthly charts, while daily moving averages remained mildly bullish. The stock’s closing price of Rs.216.35 was well below its 52-week high of Rs.280.00, highlighting valuation headroom but also caution.
Tuesday, 3 February: Technical Momentum Shift and Market Recovery
Following Monday’s decline, SCI rebounded on 3 February, gaining 2.40% to close at Rs.221.55. This intraday strength reflected a tentative shift in technical momentum from mildly bearish to mildly bullish. The stock traded within a range of Rs.216.35 to Rs.227.40, signalling renewed investor interest despite lingering mixed technical signals.
The broader market also recovered strongly, with the Sensex rising 2.63% to 36,755.96. SCI’s outperformance relative to the Sensex on this day was notable, though the weekly trend remained negative overall. Technical indicators such as daily moving averages turned bullish, supporting short-term momentum, while weekly MACD and KST remained bearish, indicating that medium-term pressure persisted.
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Wednesday, 4 February: Renewed Technical Optimism
On 4 February, SCI extended its gains, rising 1.99% to close at Rs.225.95, the highest price of the week. This marked a technical momentum shift back to mildly bullish, supported by bullish daily moving averages and a mixed but improving outlook from Bollinger Bands, which turned mildly bullish on monthly charts despite remaining bearish weekly.
Despite the positive price action, key momentum indicators such as MACD and KST remained bearish on weekly and monthly timeframes, signalling that the rally was tentative. The Relative Strength Index (RSI) stayed neutral, indicating no clear overbought or oversold conditions. Volume was moderate at 163,752 shares, reflecting cautious participation.
Thursday, 5 February: Profit Taking and Technical Consolidation
SCI retreated 1.28% on 5 February to Rs.223.05 amid profit-taking and technical consolidation. The Sensex also declined 0.53%, suggesting broader market pressures. The stock’s volume dropped sharply to 77,546 shares, indicating reduced trading interest. Technical indicators remained mixed, with daily moving averages still mildly bullish but weekly MACD and Bollinger Bands bearish, reinforcing a cautious stance.
Friday, 6 February: Week Ends with Minor Decline
The week concluded with SCI slipping 0.61% to Rs.221.70 on 6 February, marginally outperforming the Sensex’s 0.10% gain. Volume remained subdued at 82,186 shares. The stock’s weekly performance of -1.69% contrasted with the Sensex’s 1.51% rise, marking underperformance for the period. Technical momentum remained fragile, with no decisive signals emerging to confirm a sustained trend.
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Weekly Price Performance: Stock vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.216.35 | -4.06% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.221.55 | +2.40% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.225.95 | +1.99% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.223.05 | -1.28% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.221.70 | -0.61% | 36,730.20 | +0.10% |
Key Takeaways
1. Rating Upgrade Reflects Balanced View: The upgrade to Hold by MarketsMOJO acknowledges SCI’s attractive valuation and strong debt servicing capacity despite recent profit declines and rising interest costs. This balanced stance suggests cautious optimism.
2. Technical Momentum Remains Mixed: The week saw a shift from mildly bearish to mildly bullish technical momentum and back, with daily moving averages providing short-term support but weekly MACD and KST indicators remaining bearish. This indicates uncertainty and potential volatility ahead.
3. Underperformance vs Sensex: SCI’s 1.69% weekly decline contrasted with the Sensex’s 1.51% gain, highlighting relative weakness. Volume trends also weakened, suggesting subdued investor interest amid sectoral and macroeconomic pressures.
Overall, Shipping Corporation of India Ltd is navigating a complex environment with mixed financial and technical signals. The stock’s valuation and dividend yield remain attractive, but recent earnings pressures and technical uncertainty counsel a measured approach.
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