Technical Trend Overview and Price Movement
SRM Contractors Ltd’s share price closed at ₹395.25 on 9 Feb 2026, down 5.18% from the previous close of ₹416.85. The intraday range saw a high of ₹419.00 and a low of ₹391.00, reflecting heightened volatility. The stock remains significantly below its 52-week high of ₹652.25 but comfortably above its 52-week low of ₹287.35, indicating a wide trading band over the past year.
The technical trend has shifted from a sideways pattern to a mildly bearish stance, signalling increased selling pressure. This shift is corroborated by several key technical indicators, which suggest caution for short-term traders while highlighting potential consolidation phases.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a bearish signal on the weekly chart, indicating that the short-term momentum is weakening relative to the longer-term trend. The monthly MACD remains neutral, suggesting that while short-term momentum is deteriorating, the broader monthly trend has yet to confirm a sustained downtrend.
The KST (Know Sure Thing) indicator also aligns with this bearish weekly outlook, reinforcing the notion of weakening momentum. However, the daily moving averages paint a slightly more optimistic picture, showing a mildly bullish trend. This divergence between daily and weekly signals suggests that while the stock may experience short-term pullbacks, there could be intermittent buying interest supporting the price.
RSI and Bollinger Bands Analysis
The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no definitive signal, hovering in a neutral zone. This indicates that the stock is neither overbought nor oversold, leaving room for further directional movement based on upcoming market catalysts.
Conversely, Bollinger Bands on both weekly and monthly charts are bearish, with the price trending towards the lower band. This suggests increased volatility and a potential continuation of downward pressure in the near term. The contraction and expansion of these bands will be critical to watch for signs of a reversal or acceleration in price movement.
Volume and On-Balance Volume (OBV) Insights
On-Balance Volume (OBV) on the weekly chart is mildly bullish, indicating that despite price declines, there is some accumulation by investors. The monthly OBV, however, shows no clear trend, reflecting indecision among longer-term holders. This mixed volume picture suggests that while selling pressure exists, there remains underlying support that could stabilise the stock if broader market conditions improve.
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Moving Averages and Dow Theory Signals
Daily moving averages for SRM Contractors Ltd are mildly bullish, with short-term averages slightly above longer-term averages, suggesting some upward momentum in the very near term. However, the weekly and monthly Dow Theory assessments are mildly bearish, indicating that the broader trend remains under pressure and that any rallies may be corrective rather than trend-defining.
This mixed technical landscape implies that investors should remain cautious, particularly those with shorter investment horizons. The mildly bearish weekly and monthly signals suggest that the stock could face resistance near current levels, while the daily moving averages hint at potential short-lived rebounds.
Comparative Performance Against Sensex
SRM Contractors Ltd’s recent returns have lagged the benchmark Sensex considerably. Over the past week, the stock declined by 12.37%, while the Sensex gained 1.59%. The one-month and year-to-date returns for SRM Contractors are down 25.75% and 25.45% respectively, compared to modest declines of 1.74% and 1.92% for the Sensex. This underperformance highlights sector-specific or company-specific challenges impacting investor sentiment.
On a longer-term basis, however, SRM Contractors has outperformed the Sensex over the past year, delivering a 13.19% return versus the Sensex’s 7.07%. This suggests that despite recent volatility and technical weakness, the company’s fundamentals and growth prospects have supported better returns over a 12-month horizon.
Mojo Score and Rating Update
MarketsMOJO has upgraded SRM Contractors Ltd’s Mojo Grade from Sell to Hold as of 6 Feb 2026, reflecting a cautious but improved outlook. The current Mojo Score stands at 51.0, indicating a neutral stance. The Market Cap Grade is 4, signalling a mid-tier market capitalisation relative to peers in the construction sector.
This upgrade suggests that while the stock is not yet a clear buy, it has stabilised enough to warrant holding positions rather than exiting. Investors should monitor upcoming earnings and sector developments closely to reassess the stock’s trajectory.
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Investor Takeaway and Outlook
SRM Contractors Ltd’s technical indicators collectively point to a cautious near-term outlook with mildly bearish momentum on weekly and monthly charts. The bearish MACD and Bollinger Bands, combined with Dow Theory’s mildly bearish signals, suggest that the stock may face downward pressure or consolidation in the coming weeks.
However, the mildly bullish daily moving averages and weekly OBV hint at intermittent buying interest, which could provide support during market dips. The neutral RSI readings further imply that the stock is not yet oversold, leaving room for further price adjustments.
Investors should weigh these technical signals alongside the company’s fundamental performance and sector dynamics. While the recent underperformance relative to the Sensex is concerning, the stock’s positive one-year return and upgraded Mojo Grade to Hold indicate potential for recovery if market conditions improve.
Given the mixed signals, a prudent approach would be to monitor key support levels near ₹390 and resistance around ₹420, while keeping an eye on broader construction sector trends and macroeconomic factors influencing infrastructure spending.
Conclusion
SRM Contractors Ltd is navigating a complex technical landscape marked by a shift towards mild bearishness on weekly and monthly timeframes, tempered by short-term bullish signals. The stock’s recent price momentum and technical indicator readings counsel caution, but the upgraded Mojo Grade and relative long-term outperformance suggest that it remains a viable holding for investors with a medium to long-term horizon.
Market participants should stay alert to evolving technical patterns and sector developments to capitalise on potential opportunities or mitigate risks in this volatile phase.
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