Key Events This Week
16 Feb: Stock opens at Rs.369.80, down 0.58% amid Sensex gains
18 Feb: Upgrade to Strong Buy announced, stock rallies to Rs.378.20 (+1.86%)
19 Feb: Bullish momentum shift confirmed, stock closes at Rs.366.75 (-3.03%)
20 Feb: Week closes at Rs.360.90 (-1.60%), underperforming Sensex
16 February 2026: Opening Week on a Soft Note
Sky Gold & Diamonds Ltd began the week at Rs.369.80, marking a decline of 0.58% from the previous close. This drop occurred despite the Sensex advancing 0.70% to 36,787.89, indicating early weakness in the stock relative to the broader market. Trading volume was robust at 76,634 shares, suggesting active participation amid the price dip. The divergence hinted at investor caution ahead of anticipated news and technical developments later in the week.
18 February 2026: Upgrade to Strong Buy Spurs Rally
The pivotal moment of the week came on 18 February when MarketsMOJO upgraded Sky Gold & Diamonds Ltd’s rating from Buy to Strong Buy. This upgrade was underpinned by a comprehensive assessment of the company’s fundamentals, including a robust Return on Capital Employed (ROCE) of 17.21% and Return on Equity (ROE) of 17.87%, alongside record net sales of ₹1,767.68 crores in Q3 FY25-26. The operating profit surged 20.33% quarter-on-quarter, marking the eleventh consecutive quarter of positive results.
Following the announcement, the stock price surged 1.86% to close at Rs.378.20, outperforming the Sensex’s 0.43% gain that day. The upgrade also highlighted a fair valuation with a price-to-earnings ratio of 25.56 and an enterprise value to EBITDA ratio of 18.07, positioning the stock attractively within its sector. Institutional interest increased, with holdings rising by 2.87% to 12.44%, signalling growing confidence among large investors.
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19 February 2026: Bullish Momentum Shift Amid Volatility
On 19 February, technical indicators confirmed a bullish momentum shift for Sky Gold & Diamonds Ltd, with the stock closing at Rs.366.75, down 3.03% from the previous day’s close. Intraday volatility was notable, with a high of Rs.379.80 and a low of Rs.363.35. Despite the price decline, the MarketsMOJO Mojo Score rose to 81.0, reflecting strong technical and fundamental confidence.
The Moving Average Convergence Divergence (MACD) on the weekly chart turned bullish, supported by bullish Bollinger Bands and positive On-Balance Volume (OBV) trends on weekly and monthly timeframes. Daily moving averages remained firmly bullish, with the stock trading above its 50-day and 200-day averages. However, some oscillators such as the Know Sure Thing (KST) and monthly MACD showed mild bearish tendencies, suggesting caution over longer-term momentum.
The Sensex fell sharply by 1.45% to 36,523.88 on the same day, indicating broader market weakness. Sky Gold & Diamonds’ relative outperformance over longer periods remained intact despite the short-term setback.
20 February 2026: Week Closes with Underperformance
The week concluded on 20 February with Sky Gold & Diamonds Ltd closing at Rs.360.90, down 1.60% from the previous day. This decline further contrasted with the Sensex’s 0.41% gain to 36,674.32, underscoring the stock’s underperformance during the final session. Trading volume was moderate at 45,381 shares. The stock remained below its weekly high of Rs.378.20, reflecting profit-taking or cautious sentiment despite the recent upgrades and technical signals.
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Daily Price Performance: Stock vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.369.80 | -0.58% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.371.30 | +0.41% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.378.20 | +1.86% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.366.75 | -3.03% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.360.90 | -1.60% | 36,674.32 | +0.41% |
Key Takeaways
Positive Signals: The upgrade to Strong Buy by MarketsMOJO on 18 February was supported by strong operational metrics, including a ROCE of 17.21% and ROE of 17.87%, alongside record quarterly sales and profit growth. The technical momentum shift, highlighted by bullish MACD and OBV indicators, suggests underlying strength despite short-term price declines. Institutional buying increased, reflecting confidence in the company’s fundamentals and growth prospects.
Cautionary Notes: The stock underperformed the Sensex for the week, falling 2.97% against a 0.39% market gain. Oscillators such as the Know Sure Thing (KST) and monthly MACD showed mild bearish tendencies, signalling potential momentum weakening over longer horizons. The stock’s valuation moved from attractive to fair, with a PE ratio of 25.56, indicating limited margin for multiple expansion without corresponding earnings growth.
Conclusion
Sky Gold & Diamonds Ltd’s week was marked by a notable upgrade in investment rating and a clear technical momentum shift, underscoring the company’s robust fundamentals and improving market positioning. However, the stock’s price performance lagged the broader Sensex, reflecting short-term volatility and profit-taking. The combination of strong operational results, growing institutional interest, and bullish technical indicators provides a solid foundation for the company’s outlook, though investors should remain mindful of mixed signals from some momentum oscillators and the current valuation level. Overall, the week’s developments reinforce Sky Gold & Diamonds Ltd’s status as a high-quality stock within the gems and jewellery sector, with potential for sustained value creation over the medium term.
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