SRF Ltd Gains 3.08%: Mixed Technical Signals and Intraday Strength Define the Week

2 February: Bearish Technical Momentum Amid Market Pressure

SRF Ltd. began the week under pressure, closing at Rs.2,802.30, down 0.49% from the previous close of Rs.2,816.00. This decline occurred alongside a broader market sell-off, with the Sensex falling 1.03% to 35,814.09. Technical indicators signalled a shift to a more pronounced bearish momentum, with the stock trading below key moving averages and exhibiting increased volatility within a range of Rs.2,714.95 to Rs.2,879.85.

The downgrade of SRF’s Mojo Grade to Sell on 19 January 2026 was reflected in the technical weakness, with the Moving Average Convergence Divergence (MACD) and Bollinger Bands indicating downside pressure. Despite a strong long-term track record, the stock’s short-term trend was challenged by sector headwinds and broader market volatility.

3 February: Strong Gap Up and Intraday High Signal Positive Momentum

On 3 February, SRF Ltd. reversed early weakness with a significant gap up, opening 7.9% higher at Rs.3,070.20. The stock reached an intraday high of Rs.3,070.20, representing a 9.56% increase from the previous close, before settling at Rs.2,911.45, up 3.90% on the day. This performance outpaced the Sensex’s 2.63% gain and the specialty chemicals sector’s 4.65% rise, highlighting SRF’s relative strength.

Technical positioning improved as the stock traded above its 5-day, 20-day, 50-day, and 100-day moving averages, although it remained below the 200-day average, signalling a key resistance level. The mixed technical signals, including a bearish weekly MACD but bullish monthly KST, suggested cautious optimism amid ongoing market uncertainty.

This day’s rally was supported by robust volume of 21,785 shares, reflecting strong investor interest. The gap up and intraday high marked a short-term momentum shift, contrasting with the prior day’s bearish tone.

3 February: Mixed Technical Momentum Signals Emerge

Later on 3 February, technical analysis revealed a nuanced picture. Despite the strong price gains, the MACD remained bearish on the weekly timeframe, while the monthly MACD showed mild bearishness. The Relative Strength Index (RSI) hovered neutrally, indicating neither overbought nor oversold conditions. Bollinger Bands suggested bearish weekly conditions but mildly bullish monthly trends, and the Know Sure Thing (KST) indicator was bearish weekly but bullish monthly.

Daily moving averages continued to signal bearishness, with the stock trading below the 50-day and 200-day averages. On-Balance Volume (OBV) and Dow Theory indicators showed no clear trend, suggesting the recent rally lacked strong volume confirmation. The MarketsMOJO Mojo Score remained at 48.0 with a Sell grade, reflecting cautious sentiment despite the price strength.

This combination of mixed signals points to a stock in transition, with short-term momentum improving but longer-term technical resistance and caution persisting.

4-6 February: Mild Pullback and Consolidation

Following the midweek surge, SRF Ltd. experienced a mild pullback on 5 February, closing at Rs.2,905.25, down 0.38%, while the Sensex declined 0.53%. On 6 February, the stock edged down slightly by 0.08% to Rs.2,902.80, outperforming the Sensex’s modest 0.10% gain. Trading volumes tapered off significantly, with only 908 shares changing hands on the final day, indicating a consolidation phase after the prior volatility.

This price stabilisation near the Rs.2,900 level suggests investors are digesting the recent gains amid mixed technical signals and sector uncertainties. The stock’s weekly gain of 3.08% outperformed the Sensex’s 1.51%, underscoring relative strength despite the cautious environment.

Daily Price Performance vs Sensex

Key Takeaways

Positive Signals: SRF Ltd. outperformed the Sensex with a 3.08% weekly gain versus 1.51% for the benchmark, driven by a strong gap up and intraday high on 3 February. The stock’s ability to trade above short- and medium-term moving averages during the rally indicates improving short-term momentum. The intraday high of Rs.3,070.20 marked a significant resistance test.

Cautionary Signals: Despite midweek strength, technical indicators remain mixed with bearish MACD on weekly charts and the stock still below the 200-day moving average. Volume declined sharply towards week’s end, suggesting limited conviction behind the recent gains. The Mojo Grade remains Sell, reflecting ongoing caution from analysts. Sector headwinds and broader market volatility continue to pose risks.

Volume and Momentum: The surge in volume on 3 February contrasted with subdued activity on other days, highlighting the rally’s short-term nature. The mixed technical momentum suggests the stock is in a consolidation phase, requiring confirmation of sustained buying interest to break longer-term resistance.

Conclusion

SRF Ltd.’s week was marked by a volatile but ultimately positive price performance, with a 3.08% gain that outpaced the Sensex’s 1.51% rise. The significant gap up and intraday high on 3 February demonstrated strong short-term momentum, supported by favourable sector dynamics. However, mixed technical indicators and a persistent Sell rating from MarketsMOJO counsel caution. The stock remains below key long-term moving averages, and volume trends suggest the rally may lack broad-based support.

Investors should monitor SRF Ltd.’s ability to sustain gains above the 200-day moving average and watch for confirmation from momentum indicators before concluding a trend reversal. The week’s price action reflects a stock in transition, balancing short-term optimism against longer-term technical resistance and sector challenges.

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