Key Events This Week
23 Feb: Strong gap up opening with 2.88% daily gain
24 Feb: Mixed technical momentum amid positive price action
25 Feb: Technical momentum shifts to bearish despite stable price
26-27 Feb: Gradual price decline with increased selling pressure
23 February 2026: Strong Gap Up Signals Positive Market Sentiment
Star Cement Ltd. began the week on a robust note, opening at Rs.219.35, a 2.88% increase from the previous close. This gap up reflected renewed buying interest despite a recent downgrade in the company’s Mojo Grade to Sell. The stock outperformed the Sensex, which rose by 0.39% on the same day, and demonstrated high intraday volatility with a weighted average price volatility of 29.58%. The intraday high reached Rs.224.70, maintaining the positive momentum throughout the session.
Technically, the stock traded above its 5-day and 20-day moving averages, signalling short-term strength. However, it remained below longer-term averages, indicating that the broader trend was still cautious. The MACD and Bollinger Bands on weekly and monthly charts remained bearish, suggesting that the gap up might represent a short-term rebound rather than a sustained reversal. The stock’s high beta of 1.35 relative to the MIDCAP index contributed to the pronounced price swings observed.
24 February 2026: Mixed Technical Signals Amid Positive Price Action
On 24 Feb, Star Cement’s price closed at Rs.217.35, down 0.91% from the previous day’s close, while the Sensex declined by 0.78%. Despite the price dip, technical momentum showed a subtle shift from bearish to mildly bearish. The stock traded within a relatively narrow range between Rs.217.00 and Rs.224.70, reflecting consolidation after the previous day’s surge.
Technical indicators painted a complex picture: the MACD remained bearish on weekly charts but mildly bearish monthly, while the RSI hovered in a neutral zone, indicating neither overbought nor oversold conditions. The Know Sure Thing (KST) oscillator was mildly bullish weekly but mildly bearish monthly, and Dow Theory assessments remained mildly bearish. On-Balance Volume (OBV) showed no clear trend, suggesting volume was not confirming price movements.
Star Cement’s long-term returns continued to outpace the Sensex, with a 3-year return of 100.36% versus 39.74% for the benchmark. However, year-to-date returns were slightly negative at -2.29%, mirroring the Sensex’s -2.26%. These mixed signals underscored the need for cautious analysis amid sector headwinds and broader market volatility.
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25 February 2026: Technical Momentum Shifts to Bearish Amid Market Pressures
On 25 Feb, Star Cement’s price remained steady at Rs.217.35, unchanged from the previous close, while the Sensex gained 0.41%. Despite the stable price, technical momentum deteriorated further, shifting from mildly bearish to a more pronounced bearish trend. Daily moving averages turned decisively bearish, reflecting sustained downward pressure on the stock.
The MACD indicator was firmly bearish on weekly charts and mildly bearish monthly, while the RSI remained neutral. Bollinger Bands analysis showed increased volatility with the stock trading near the lower band, signalling downward momentum. The KST oscillator was mildly bullish weekly but mildly bearish monthly, indicating short-term recovery attempts amid longer-term weakness. Dow Theory assessments and OBV indicators confirmed the lack of strong trend confirmation.
Despite these technical setbacks, Star Cement’s longer-term returns remained impressive, with a 5-year return of 119.14% compared to the Sensex’s 61.92%. However, recent year-to-date returns of -3.4% closely tracked the Sensex’s -3.51%, reflecting the current technical challenges. The downgrade in Mojo Grade to Sell emphasised the deteriorating technical outlook and the need for caution.
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26-27 February 2026: Gradual Price Decline Amid Increased Selling Pressure
The final two trading days of the week saw Star Cement’s price decline steadily, closing at Rs.215.95 on 26 Feb (-0.64%) and Rs.214.10 on 27 Feb (-0.86%). This downward movement contrasted with the Sensex’s mixed performance, which rose 0.19% on 26 Feb before falling 1.16% on 27 Feb. The stock’s volume decreased notably during this period, indicating reduced buying interest and increased selling pressure.
Technical indicators continued to signal bearish momentum, with moving averages and Bollinger Bands confirming the downward trend. The lack of volume confirmation from OBV and neutral RSI readings suggested tentative market sentiment. The stock remained well below its 52-week high of Rs.308.10, underscoring the significant retracement from peak levels.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-23 | Rs.219.35 | +2.88% | 36,817.86 | +0.39% |
| 2026-02-24 | Rs.217.35 | -0.91% | 36,530.09 | -0.78% |
| 2026-02-25 | Rs.217.35 | +0.00% | 36,679.75 | +0.41% |
| 2026-02-26 | Rs.215.95 | -0.64% | 36,748.49 | +0.19% |
| 2026-02-27 | Rs.214.10 | -0.86% | 36,322.56 | -1.16% |
Key Takeaways
Star Cement Ltd.’s week was characterised by a strong start with a significant gap up on 23 Feb, reflecting positive market sentiment despite a recent downgrade to a Sell rating. The stock outperformed the Sensex by 1.38% over the week, closing at Rs.214.10, a 0.42% gain from the opening price.
Technical momentum shifted from mildly bearish to more pronounced bearish signals as the week progressed, with moving averages turning negative and Bollinger Bands indicating increased volatility. The MACD remained bearish on weekly charts, while RSI stayed neutral, suggesting consolidation rather than a clear directional trend.
Volume trends and On-Balance Volume indicators did not confirm price movements strongly, highlighting uncertainty among investors. Despite short-term technical challenges, Star Cement’s long-term returns remain robust, significantly outperforming the Sensex over three and five years.
Investors should note the stock’s high beta of 1.35, which contributes to its volatility and potential for rapid price swings. The cement sector’s cyclical nature and external factors such as raw material costs and regulatory pressures continue to influence the stock’s performance.
Conclusion
Star Cement Ltd. demonstrated resilience in a volatile week, managing to outperform the Sensex despite mixed technical signals and a bearish shift in momentum. The strong gap up on 23 Feb highlighted renewed buying interest, but subsequent trading sessions revealed caution and selling pressure. The downgrade to a Sell rating and bearish technical indicators suggest that the stock remains under pressure in the short term.
Long-term investors may find comfort in the company’s historical outperformance and sector fundamentals, but the current technical landscape advises prudence. Monitoring key technical levels, volume trends, and broader market conditions will be essential for assessing the stock’s trajectory in the coming weeks.
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