Standard Industries Gains 1.67%: Technical Improvements Amid Deepening Losses

Monday, 9 February: Technical Upgrade Spurs Initial Rally

Standard Industries Ltd began the week strongly, surging 8.48% to close at Rs.16.89 on 9 February 2026. This sharp gain followed MarketsMOJO’s upgrade of the stock’s Mojo Grade from Strong Sell to Sell, reflecting a modest improvement in technical indicators despite ongoing fundamental weaknesses. The upgrade highlighted a tentative stabilisation in price momentum, with technical metrics such as monthly RSI showing bullish signals, even as MACD and KST oscillators remained bearish.

The volume of 6,513 shares traded was notable, indicating increased investor interest following the rating change. Meanwhile, the Sensex also advanced 1.04%, closing at 37,113.23, but Standard Industries clearly outperformed the broader market on this day.

Tuesday, 10 February: Minor Pullback Amid Profit Taking

On 10 February, the stock corrected by 1.48%, closing at Rs.16.64, as some investors booked profits after Monday’s sharp rally. The volume dipped slightly to 5,945 shares. The Sensex continued its upward trajectory, gaining 0.25% to 37,207.34, but Standard Industries underperformed the index on this day. This pullback was consistent with the cautious technical outlook, where moving averages remained mildly bearish and Bollinger Bands suggested limited volatility expansion.

Wednesday, 11 February: Recovery Gains Momentum

The stock rebounded on 11 February, rising 1.98% to close at Rs.16.97, its highest level of the week. Trading volume was lower at 2,771 shares, suggesting a more measured recovery. The Sensex edged up 0.13% to 37,256.72, but Standard Industries again outperformed the benchmark. This price action aligned with the mildly bullish signals from Dow Theory on the weekly timeframe, indicating short-term optimism despite the broader bearish technical backdrop.

Thursday, 12 February: Q3 Results Deepen Losses, Pressure Returns

On 12 February, Standard Industries released its Q3 FY26 results, which revealed a deepening net loss and ongoing struggles in its property division. The stock reacted negatively, falling 5.24% to Rs.16.08 on heavy volume of 13,177 shares. The Sensex declined 0.56% to 37,049.40, but Standard Industries underperformed the market significantly on this day.

The results confirmed persistent operational challenges, with a net loss of ₹-6.65 crores and a negative ROCE of -9.88% for the half-year period. Sales contracted by 5.7% relative to the prior four-quarter average, and EBITDA remained negative, underscoring cash flow difficulties. These fundamental weaknesses weighed heavily on investor sentiment despite the earlier technical upgrade.

Friday, 13 February: Week Ends on a Slight Decline

The week concluded with the stock slipping 1.55% to Rs.15.83 on 13 February, with volume remaining elevated at 11,083 shares. The Sensex fell 1.40% to 36,532.48, marking a broader market downturn. Despite the decline, Standard Industries outperformed the index on a weekly basis, closing the week down 6.29% from Monday’s open but still reflecting a net gain relative to the previous Friday’s close of Rs.15.57 (+1.67%).

This price action suggests that while the company faces significant fundamental headwinds, the technical upgrade and institutional backing—42.91% stake held by institutional investors—may be providing some price support amid sector challenges.

Key Takeaways

Positive Signals: The technical upgrade from Strong Sell to Sell by MarketsMOJO on 6 February 2026 was a notable development, reflecting a mild improvement in price momentum and technical indicators. The stock outperformed the Sensex on three of the five trading days this week, including a strong 8.48% rally on Monday. Institutional investors maintain a significant stake of 42.91%, which may provide some stability amid volatility.

Cautionary Signals: Despite the technical improvement, fundamental challenges persist. The Q3 FY26 results released on 12 February showed deepening losses, negative ROCE of -9.88%, and contracting sales, underscoring ongoing operational difficulties. The stock’s weekly decline from Monday’s peak and the negative volume trends on key days highlight investor caution. The valuation remains risky relative to historical norms, with no dividend yield and a small market capitalisation contributing to liquidity concerns.

Conclusion

Standard Industries Ltd’s week was characterised by a juxtaposition of technical optimism and fundamental weakness. The upgrade to a Sell rating from Strong Sell signalled a tentative bottoming in price momentum, which was reflected in the stock’s outperformance relative to the Sensex early in the week. However, the Q3 earnings report dampened sentiment, revealing persistent losses and operational struggles in the property division. The stock closed the week down 6.29% from its Monday high but still posted a 1.67% gain over the previous Friday’s close, outperforming the Sensex’s 0.54% decline.

Investors should weigh the modest technical improvements against the ongoing financial challenges and sector headwinds. A sustained recovery will likely depend on a meaningful turnaround in operational performance and earnings growth, which remains uncertain at this stage.

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