Shipping Corporation of India Ltd Faces Technical Momentum Shift Amid Market Pressure

Technical Trend Overview and Price Movement

SCI’s current market price stands at ₹214.65, down 1.51% from the previous close of ₹217.95 on 12 Jan 2026. The stock traded within a range of ₹213.55 to ₹221.40 during the session, remaining well below its 52-week high of ₹280.00, while comfortably above the 52-week low of ₹138.25. Despite this, the recent price action has shown signs of deceleration, with the technical trend shifting from mildly bullish to sideways, signalling a loss of upward momentum.

The stock’s performance relative to the broader market has also been subdued. Year-to-date, SCI has declined by 7.38%, significantly underperforming the Sensex’s modest 1.93% fall over the same period. Over the past month and week, the stock has dropped 5.50% and 8.68% respectively, compared to the Sensex’s declines of 1.29% and 2.55%. This relative weakness highlights growing investor apprehension amid uncertain market conditions.

MACD and Momentum Indicators Signal Bearish Bias

The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, presents a mildly bearish outlook on both weekly and monthly timeframes. The weekly MACD histogram has turned negative, indicating that the short-term momentum is waning relative to the longer-term trend. Similarly, the monthly MACD remains mildly bearish, suggesting that the stock’s medium-term momentum is also under pressure.

This bearish MACD alignment is corroborated by the KST (Know Sure Thing) indicator, which also shows mildly bearish readings on weekly and monthly charts. The KST’s decline signals that the stock’s price momentum is losing strength, reinforcing the cautionary stance among technical analysts.

RSI and Bollinger Bands Indicate Lack of Clear Direction

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in a neutral zone that neither indicates overbought nor oversold conditions. This lack of directional RSI signal suggests that the stock is consolidating, with neither buyers nor sellers dominating the price action decisively.

Conversely, Bollinger Bands on weekly and monthly timeframes are signalling bearish tendencies. The stock price has been testing the lower band, indicating increased volatility and a potential downward bias. This technical setup often precedes further price weakness if the lower band is breached decisively.

Moving Averages and Volume Trends

On a daily basis, moving averages provide a mildly bullish signal, with the stock price trading slightly above its short-term moving averages. However, this bullishness is tempered by the broader sideways trend and bearish momentum indicators on higher timeframes.

Volume analysis via On-Balance Volume (OBV) shows a bullish trend on the weekly chart, suggesting that accumulation may be occurring despite price weakness. However, the monthly OBV shows no clear trend, indicating that longer-term volume support is lacking. This divergence between price and volume trends adds complexity to the technical outlook.

Dow Theory and Market Sentiment

According to Dow Theory, the weekly trend remains mildly bullish, reflecting some underlying strength in the stock’s price action. However, the monthly Dow Theory trend is classified as having no clear trend, underscoring the uncertainty in the stock’s medium-term direction.

These mixed signals from Dow Theory align with the overall technical picture of a stock caught between bullish short-term signals and bearish momentum indicators on longer timeframes.

Mojo Score and Grade Downgrade

Reflecting these technical developments, MarketsMOJO has downgraded Shipping Corporation of India Ltd’s Mojo Grade from Hold to Sell as of 09 Jan 2026. The current Mojo Score stands at 42.0, indicating weak technical and fundamental support for the stock at present. The Market Cap Grade remains low at 3, signalling limited market capitalisation strength relative to peers.

This downgrade is a clear signal for investors to exercise caution, as the stock’s technical parameters have deteriorated, and price momentum has shifted unfavourably.

Long-Term Performance Context

Despite recent technical setbacks, SCI’s long-term returns remain impressive. Over the past five years, the stock has delivered a cumulative return of 212.48%, significantly outperforming the Sensex’s 71.32% gain. Over three years, SCI’s return of 90.65% also surpasses the Sensex’s 37.58%, underscoring the company’s historical growth potential.

However, the 10-year return of 202.69% trails the Sensex’s 235.19%, indicating that while SCI has been a strong performer, it has not consistently outpaced the broader market over the longest horizon. This mixed long-term performance, combined with recent technical deterioration, suggests investors should carefully weigh the risks and rewards before committing fresh capital.

Investor Takeaway

In summary, Shipping Corporation of India Ltd is currently navigating a challenging technical landscape. The shift from mildly bullish to sideways trend, combined with bearish MACD, KST, and Bollinger Band signals, points to weakening price momentum. The neutral RSI and mixed volume trends add complexity, but the downgrade to a Sell Mojo Grade reflects a cautious stance.

Investors should monitor key support levels near ₹213 and watch for confirmation of trend direction in coming weeks. Given the stock’s underperformance relative to the Sensex in the short term and the technical signals, a defensive approach is advisable until clearer signs of recovery emerge.

MarketsMOJO’s comprehensive analysis and grading system provide valuable insights for investors seeking to navigate the evolving technical dynamics of SCI and the Transport Services sector.

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