Shivalik Bimetal Controls Ltd Sees Mixed Technical Signals Amid Strong Price Momentum

Price Momentum and Recent Performance

The stock’s recent rally has been impressive, with a one-week return of 20.31%, vastly outperforming the Sensex’s modest 2.30% gain over the same period. Over the past month and year-to-date, Shivalik Bimetal has also delivered positive returns of 13.00% and 13.70% respectively, while the broader market has declined. However, the one-year return remains negative at -2.68%, lagging the Sensex’s 8.49% gain, reflecting some volatility and mixed investor sentiment over the longer term.

From a longer horizon, the stock’s five-year return of 1051.09% dwarfs the Sensex’s 66.63%, highlighting Shivalik Bimetal’s strong historical growth trajectory despite recent fluctuations. The 10-year return is even more striking at 6737.43%, underscoring the company’s transformative journey within the Iron & Steel Products industry.

Technical Trend Shift: From Bearish to Mildly Bearish

Technically, the stock has shifted from a bearish trend to a mildly bearish stance, signalling a tentative improvement but still cautioning investors. The daily moving averages remain mildly bearish, suggesting that short-term momentum is yet to fully confirm a sustained uptrend. The 52-week high of ₹604.00 and low of ₹378.00 provide a wide trading range, with the current price near the upper third, indicating some recovery but room for further upside.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, MACD is mildly bullish, reflecting improving momentum and potential for further gains. However, the monthly MACD remains bearish, indicating that longer-term momentum has yet to turn decisively positive. This divergence between weekly and monthly MACD readings suggests that while short-term traders may find opportunities, longer-term investors should remain cautious.

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 implies the stock is neither overbought nor oversold, providing a balanced outlook without extreme momentum pressures. The lack of RSI extremes suggests that the recent price surge is not yet at risk of an immediate technical correction, but vigilance is warranted as momentum evolves.

Bollinger Bands and Volatility

Bollinger Bands on the weekly chart are bullish, indicating that the stock price is trending near the upper band, often a sign of strength and upward momentum. Conversely, the monthly Bollinger Bands are mildly bearish, signalling that volatility and price compression may be limiting longer-term upside. This mixed signal reinforces the notion of a stock in transition, with short-term strength tempered by longer-term caution.

Other Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator aligns with the MACD, showing a mildly bullish signal on the weekly chart but bearish on the monthly, reinforcing the mixed momentum narrative. Dow Theory analysis also reflects this duality, with weekly trends mildly bullish while monthly trends remain mildly bearish. This suggests that while short-term price action is improving, the broader trend has yet to confirm a full recovery.

On-Balance Volume (OBV) shows no clear trend on either weekly or monthly charts, indicating that volume is not strongly confirming price moves. This lack of volume confirmation may limit the sustainability of recent gains and warrants close monitoring for any shifts in buying or selling pressure.

Market Capitalisation and Mojo Ratings

Shivalik Bimetal Controls Ltd holds a market cap grade of 3, reflecting its mid-tier capitalisation status within the Iron & Steel Products sector. The company’s Mojo Score currently stands at 48.0, with a recent downgrade from Hold to Sell on 27 Oct 2025. This downgrade reflects a cautious stance based on the technical and fundamental outlook, signalling that investors should weigh risks carefully despite recent price strength.

Price Range and Intraday Volatility

On 4 Feb 2026, the stock traded between ₹438.90 and ₹494.95, closing near the day’s high. This intraday volatility of approximately 12.7% highlights strong buying interest but also underscores the potential for sharp price swings. Investors should consider this volatility in their risk management strategies.

Comparative Performance Within Sector and Market

Compared to the broader Sensex, Shivalik Bimetal has outperformed significantly in the short term, with weekly and monthly returns well above the benchmark. However, its longer-term underperformance relative to the Sensex over one and three years suggests that the stock’s recent momentum may be a rebound rather than a sustained uptrend. Sector peers in Iron & Steel Products have shown mixed results, with some large caps maintaining steadier gains, highlighting the importance of stock-specific factors in Shivalik Bimetal’s price action.

Investor Takeaway and Outlook

Shivalik Bimetal Controls Ltd’s recent price momentum shift and mixed technical signals present a nuanced investment case. The mildly bullish weekly MACD and Bollinger Bands suggest potential for further short-term gains, supported by strong recent returns and intraday buying interest. However, the bearish monthly MACD, mildly bearish moving averages, and neutral RSI caution that the longer-term trend remains uncertain.

Investors should consider the stock’s volatility and the recent downgrade in Mojo Grade from Hold to Sell, reflecting underlying risks. The absence of strong volume confirmation via OBV and the divergence in momentum indicators imply that any rally may face resistance without broader market support or fundamental catalysts.

Given the stock’s historical outperformance over five and ten years, patient investors with a higher risk tolerance may view current levels as an opportunity to accumulate selectively, while more conservative investors might prefer to wait for clearer confirmation of trend reversal on monthly charts.

Overall, Shivalik Bimetal Controls Ltd remains a stock to watch closely, with technical parameters signalling a tentative recovery but requiring further validation before a sustained uptrend can be confidently endorsed.

Unlock special upgrade rates for a limited period. Start Saving Now →