SRF Ltd. Technical Momentum Shifts to Bearish Amid Market Pressure

Technical Trend Overview and Price Movement

SRF Ltd. closed at ₹2,721.20 on 2 Feb 2026, down 3.37% from the previous close of ₹2,816.00. The intraday range was between ₹2,714.95 and ₹2,879.85, reflecting heightened volatility. The stock remains below its 52-week high of ₹3,319.00 and is only marginally above its 52-week low of ₹2,569.95, underscoring a recent weakening in price momentum.

The technical trend has deteriorated from mildly bearish to outright bearish, signalling a shift in investor sentiment. This is corroborated by the daily moving averages, which are firmly bearish, indicating that the stock is trading below key short- and medium-term averages, a classic sign of downward momentum.

MACD and Momentum Oscillators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed but predominantly negative picture. On a weekly basis, the MACD is bearish, reflecting sustained selling pressure over recent weeks. The monthly MACD remains mildly bearish, suggesting that while the longer-term trend is not yet decisively negative, it is weakening.

Relative Strength Index (RSI) readings on both weekly and monthly charts currently show no clear signal, hovering in neutral zones. This lack of momentum confirmation from RSI indicates that the stock is neither oversold nor overbought, but the absence of bullish RSI divergence limits optimism for a near-term rebound.

Bollinger Bands and Volatility

Bollinger Bands on both weekly and monthly timeframes are signalling bearish conditions. The stock price is trending towards the lower band, which often indicates increased selling pressure and potential continuation of the downtrend. This technical setup suggests that volatility is rising on the downside, and traders should be cautious of further declines.

Moving Averages and KST Indicator

Daily moving averages have turned bearish, with the stock price trading below its 50-day and 200-day averages. This crossover is a classic technical sell signal, often prompting further downside as momentum traders exit positions.

The Know Sure Thing (KST) indicator presents a nuanced view: it is bearish on the weekly chart but bullish on the monthly chart. This divergence suggests that while short-term momentum is negative, there may be some underlying longer-term strength. However, given the prevailing bearish signals elsewhere, the short-term outlook remains cautious.

Dow Theory and On-Balance Volume (OBV)

According to Dow Theory, the weekly trend is mildly bearish, indicating that the stock is in a corrective phase or early downtrend. The monthly Dow Theory trend shows no clear direction, reflecting uncertainty in the broader market context for SRF Ltd.

On-Balance Volume (OBV) readings on both weekly and monthly charts show no discernible trend, implying that volume is not confirming price movements. This lack of volume support for the price decline could mean that the selling pressure is not yet broad-based, but it also fails to provide a bullish counterpoint.

Comparative Performance Against Sensex

SRF Ltd.’s recent returns have lagged the Sensex across multiple timeframes. Over the past month, the stock has declined by 10.63%, compared to a 4.67% drop in the Sensex. Year-to-date, SRF is down 11.49%, while the Sensex has fallen 5.28%. Over the last year, SRF’s return is negative 3.84%, contrasting with the Sensex’s positive 5.16% gain.

Longer-term performance remains robust, with SRF delivering a 5-year return of 153.31% versus the Sensex’s 74.40%, and a remarkable 10-year return of 1,066.50% compared to the Sensex’s 224.57%. This highlights the stock’s strong historical growth, though recent momentum has clearly faltered.

Mojo Score and Analyst Ratings

MarketsMOJO assigns SRF Ltd. a Mojo Score of 43.0, reflecting a Sell rating, downgraded from Hold on 19 Jan 2026. The Market Cap Grade is 2, indicating a mid-cap classification with moderate liquidity and market presence. This downgrade aligns with the deteriorating technical indicators and recent price weakness, signalling caution for investors.

Implications for Investors and Outlook

The confluence of bearish technical signals across multiple indicators suggests that SRF Ltd. is currently facing downward momentum. The daily moving averages and weekly MACD confirm short-term weakness, while Bollinger Bands indicate increased volatility on the downside. The absence of strong volume confirmation and neutral RSI readings imply that the stock may continue to consolidate or decline gradually rather than experience a sharp sell-off.

Investors should weigh these technical factors alongside the company’s strong long-term fundamentals and historical outperformance. The recent downgrade to a Sell rating by MarketsMOJO reflects the current technical caution but does not negate the stock’s potential for recovery if broader market conditions improve or if the company reports positive operational developments.

Given the mixed signals from the KST and Dow Theory monthly trends, a cautious approach is advisable. Traders may consider waiting for confirmation of a trend reversal or a sustained breakout above key moving averages before initiating new positions. Meanwhile, risk-averse investors might explore alternative stocks within the Specialty Chemicals sector or other sectors with stronger momentum profiles.

Summary

SRF Ltd. is navigating a challenging technical landscape marked by bearish momentum and recent price declines. The stock’s underperformance relative to the Sensex and the downgrade in analyst ratings underscore the need for prudence. While longer-term fundamentals remain intact, the current technical environment suggests limited upside in the near term, with potential for further downside risk.

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