Star Cement Ltd. Technical Momentum Shifts to Bearish Amid Market Pressure

Price Movement and Market Context

On 9 February 2026, Star Cement closed at ₹215.25, down 3.30% from the previous close of ₹222.60. The intraday range was broad, with a high of ₹241.20 and a low of ₹210.65, indicating heightened volatility. The stock remains significantly below its 52-week high of ₹308.10, while still comfortably above its 52-week low of ₹196.70. This price action reflects a struggle to regain upward momentum amid broader market pressures.

Comparatively, Star Cement’s recent returns have lagged the benchmark Sensex. Over the past week, the stock declined by 2.0%, whereas the Sensex gained 1.59%. The one-month return shows a similar pattern, with Star Cement down 2.47% against the Sensex’s 1.74% loss. Year-to-date, the stock has fallen 4.4%, more than double the Sensex’s 1.92% decline. However, over longer horizons, Star Cement has outperformed, delivering 88.4% returns over three years and 112.28% over five years, compared to the Sensex’s 38.13% and 64.75% respectively.

Technical Indicators Signal Bearish Shift

The technical landscape for Star Cement has shifted decidedly bearish. The weekly MACD indicator is firmly bearish, signalling that the stock’s short-term momentum is weakening relative to its longer-term trend. The monthly MACD remains mildly bearish, suggesting that while the longer-term trend is still under pressure, it is not yet decisively negative. The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory, which implies the stock is neither overbought nor oversold at present.

Bollinger Bands reinforce the bearish outlook, with both weekly and monthly readings indicating downward pressure. The stock price has been testing the lower band on the weekly chart, a sign of increased selling pressure and potential continuation of the downtrend. Daily moving averages have also turned bearish, with the stock trading below its key short- and medium-term averages, signalling a lack of buying interest at higher levels.

Additional Technical Measures

The Know Sure Thing (KST) oscillator, a momentum indicator, is bearish on the weekly timeframe and mildly bearish on the monthly, further confirming the weakening momentum. Interestingly, the Dow Theory presents a mixed picture: mildly bullish on the weekly but mildly bearish on the monthly, reflecting short-term resilience amid longer-term caution. On-Balance Volume (OBV) readings are mildly bullish on both weekly and monthly charts, suggesting that despite price weakness, accumulation by some investors may be occurring, though this has not yet translated into a sustained price recovery.

Mojo Score and Grade Downgrade

Star Cement’s Mojo Score currently stands at 37.0, reflecting a Sell rating, a downgrade from the previous Hold grade assigned on 2 December 2025. This downgrade is indicative of the deteriorating technical and fundamental outlook. The company’s Market Cap Grade is 3, signalling a mid-tier market capitalisation relative to its peers in the Cement & Cement Products sector. The downgrade aligns with the technical indicators’ bearish signals and the stock’s underperformance relative to the Sensex in recent months.

Long-Term Performance and Sector Context

Despite recent weakness, Star Cement’s long-term performance remains robust. Over the past five years, the stock has delivered a cumulative return of 112.28%, nearly doubling the Sensex’s 64.75% gain over the same period. Over three years, the stock’s 88.4% return also outpaces the benchmark’s 38.13%. This outperformance underscores the company’s resilience and growth potential within the cement sector, which continues to benefit from infrastructure development and urbanisation trends in India.

However, the current technical deterioration suggests caution for near-term investors. The cement sector itself has faced headwinds from rising input costs and fluctuating demand, which may be contributing to the stock’s recent struggles. Investors should weigh these sectoral challenges alongside Star Cement’s long-term growth story.

Investor Takeaway and Outlook

Star Cement’s technical indicators collectively point to a bearish momentum shift, with the stock facing resistance near the ₹240 level and trading below key moving averages. The weekly MACD and Bollinger Bands suggest further downside risk, while the neutral RSI indicates no immediate oversold bounce is imminent. Mildly bullish OBV readings hint at some underlying accumulation, but this has yet to translate into a sustained price recovery.

Given the downgrade to a Sell rating and the current technical setup, investors should exercise caution and consider risk management strategies. Those with a longer investment horizon may view recent weakness as a potential entry point, given the company’s strong long-term returns and sector fundamentals. However, short-term traders should be wary of further declines and monitor key support levels near ₹196.70, the 52-week low.

In summary, Star Cement Ltd. is navigating a challenging technical environment amid broader sectoral pressures. The downgrade in Mojo Grade and bearish technical signals warrant a cautious stance, while the company’s historical outperformance and sector prospects offer a balanced perspective for investors.

Technical Summary at a Glance:

• MACD: Weekly Bearish, Monthly Mildly Bearish
• RSI: Neutral on Weekly and Monthly
• Bollinger Bands: Bearish on Weekly and Monthly
• Moving Averages: Daily Bearish
• KST: Weekly Bearish, Monthly Mildly Bearish
• Dow Theory: Weekly Mildly Bullish, Monthly Mildly Bearish
• OBV: Mildly Bullish on Weekly and Monthly

Price and Returns Overview:

• Current Price: ₹215.25
• 52-Week High: ₹308.10
• 52-Week Low: ₹196.70
• 1 Week Return: -2.0% vs Sensex +1.59%
• 1 Month Return: -2.47% vs Sensex -1.74%
• Year-to-Date Return: -4.4% vs Sensex -1.92%
• 3 Year Return: +88.4% vs Sensex +38.13%
• 5 Year Return: +112.28% vs Sensex +64.75%

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