Technical Trend Shift and Price Movement
On 9 Feb 2026, Sky Gold & Diamonds Ltd closed at ₹320.40, marking a 2.28% increase from the previous close of ₹313.25. The stock traded within a range of ₹305.00 to ₹322.75 during the day, reflecting heightened volatility but an overall upward bias. This price movement aligns with the technical trend change from sideways to mildly bullish, signalling a potential inflection point after a period of consolidation.
The stock remains below its 52-week high of ₹403.90 but comfortably above the 52-week low of ₹245.95, indicating a recovery phase within a broader long-term uptrend. The daily moving averages have turned mildly bullish, reinforcing the short-term positive momentum. This is a critical development for traders and investors seeking entry points in the Gems, Jewellery and Watches sector, which has seen mixed performance amid global economic uncertainties.
MACD and Momentum Oscillators: Divergent Signals
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On the weekly chart, the MACD remains bearish, suggesting that the medium-term momentum is still under pressure. The monthly MACD is mildly bearish, indicating that longer-term momentum has yet to fully recover. This divergence between short-term price gains and longer-term momentum indicators warrants cautious optimism.
Conversely, the Relative Strength Index (RSI) on the weekly timeframe is bullish, signalling that buying pressure is increasing and the stock is gaining strength relative to its recent price history. The monthly RSI, however, shows no clear signal, reflecting a neutral stance over the longer horizon. This mixed RSI reading suggests that while short-term momentum is improving, the stock has not yet entered overbought territory, leaving room for further upside.
Bollinger Bands and Volatility Assessment
Bollinger Bands provide insight into volatility and potential price breakouts. On the weekly chart, the bands are mildly bearish, indicating that price volatility remains somewhat constrained and the stock is trading near the lower band, which could act as support. In contrast, the monthly Bollinger Bands are bullish, suggesting that over a longer timeframe, the stock is experiencing expanding volatility with an upward bias. This disparity highlights the importance of monitoring multiple timeframes to gauge the sustainability of the current price move.
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Moving Averages and KST Indicator
The daily moving averages have shifted to a mildly bullish stance, signalling that recent price gains are supported by underlying trend strength. This is a positive sign for short-term traders looking for confirmation of momentum. However, the Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, remains mildly bearish on both weekly and monthly charts. This suggests that despite recent gains, the broader momentum cycle has not fully turned positive, and investors should remain vigilant for potential reversals.
Dow Theory and On-Balance Volume (OBV) Analysis
According to Dow Theory, the weekly trend is mildly bullish, indicating that the stock is in the early stages of an upward trend phase. However, the monthly Dow Theory reading is mildly bearish, reflecting caution over the longer term. This mixed signal underscores the importance of a balanced approach when analysing Sky Gold & Diamonds Ltd.
On-Balance Volume (OBV), a volume-based indicator used to confirm price trends, shows no clear trend on either weekly or monthly timeframes. The lack of volume confirmation suggests that the current price move may not yet be supported by strong institutional buying, which is a key factor for sustained rallies.
Comparative Returns and Market Context
Sky Gold & Diamonds Ltd has delivered impressive long-term returns relative to the Sensex benchmark. Over the past three years, the stock has surged by 957.95%, vastly outperforming the Sensex’s 38.13% gain. Over five years, the stock’s return of 3,430.58% dwarfs the Sensex’s 64.75%, highlighting its exceptional growth trajectory within the Gems, Jewellery and Watches sector.
However, recent performance has been more subdued. Year-to-date, the stock has declined by 3.93%, slightly underperforming the Sensex’s 1.92% fall. Over the past year, the stock has dropped 18.39%, contrasting with the Sensex’s 7.07% gain. These figures reflect sector-specific headwinds and broader market volatility impacting short-term performance.
In the immediate term, the stock’s one-week return of 5.08% significantly outpaces the Sensex’s 1.59%, suggesting renewed investor interest and potential for a rebound.
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Mojo Score Upgrade and Market Capitalisation
MarketsMOJO has upgraded Sky Gold & Diamonds Ltd’s Mojo Grade from Hold to Buy as of 6 Feb 2026, reflecting improved technical and fundamental outlooks. The company’s Mojo Score stands at a robust 77.0, signalling strong potential relative to peers in the Gems, Jewellery and Watches sector. The market capitalisation grade is rated 3, indicating a mid-cap status that balances growth potential with liquidity considerations.
This upgrade is significant for investors seeking quality stocks with improving momentum and solid business fundamentals. The combination of a higher Mojo Score and a Buy rating suggests that Sky Gold & Diamonds Ltd is well-positioned to capitalise on sector recovery and favourable market conditions.
Investor Considerations and Outlook
While the technical indicators present a mixed picture, the overall trend is shifting towards mild bullishness, particularly in the short term. Investors should note the divergence between weekly bullish RSI and bearish MACD signals, as well as the lack of volume confirmation from OBV. These factors imply that while upside potential exists, caution is warranted until stronger confirmation emerges.
Given the stock’s impressive long-term returns and recent technical upgrades, it remains an attractive candidate for investors with a medium to long-term horizon. Monitoring key support levels near ₹305 and resistance around ₹323 will be critical in assessing the sustainability of the current momentum.
In summary, Sky Gold & Diamonds Ltd is demonstrating early signs of a technical turnaround, supported by improved daily moving averages and a bullish weekly RSI. However, mixed signals from MACD, KST, and volume indicators suggest that investors should adopt a measured approach, balancing optimism with risk management.
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