Key Events This Week
2 Feb: Technical momentum shift amid strong price rally
3 Feb: Intraday high of Rs.252 with 12.6% surge and significant gap up
4-6 Feb: Gradual price correction with three consecutive declines
6 Feb: Week closes at Rs.225.55, up 22.05% for the week
2 February 2026: Technical Momentum Shift Sparks Sharp Rally
Steelcast Ltd began the week with a remarkable 16.15% gain, closing at Rs.214.65 on 2 February 2026. This surge was accompanied by a significant volume of 8,829 shares traded, signalling renewed investor interest. The stock’s strong performance contrasted sharply with the Sensex, which declined 1.03% to 35,814.09 on the same day. The price action reflected a technical momentum shift from bearish to mildly bearish territory, as key indicators such as the Moving Average Convergence Divergence (MACD) and Bollinger Bands suggested a cautious but positive outlook. Despite the rally, the Mojo Score remained at 48.0 with a Sell rating, indicating tempered enthusiasm amid mixed technical signals.
3 February 2026: Gap Up and Intraday High Fuel Further Gains
On 3 February, Steelcast Ltd opened with a significant gap up of 7.62%, reflecting strong positive market sentiment. The stock continued its upward trajectory, reaching an intraday high of Rs.252, a 17.4% increase from the previous close. It closed at Rs.243.55, up 13.46% on the day, with volume surging to 28,513 shares. This performance outpaced both the Castings & Forgings sector and the Sensex, which rose 2.63% to 36,755.96. The stock’s position above all major moving averages reinforced the bullish technical stance, despite the ongoing Sell Mojo Grade. Elevated intraday volatility of 148.03% underscored the dynamic trading environment. This day marked the peak of the week’s rally, with Steelcast delivering a cumulative three-day gain of 31.41%.
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4 to 6 February 2026: Price Correction Amid Mixed Technical Signals
Following the peak on 3 February, Steelcast Ltd experienced a gradual correction over the next three trading sessions. On 4 February, the stock declined 3.51% to close at Rs.235.00 on volume of 23,313 shares, while the Sensex gained 0.37%. The downtrend continued on 5 February with a 1.62% drop to Rs.231.20 on lower volume of 5,509 shares, as the Sensex fell 0.53%. The week ended on 6 February with a further 2.44% decline to Rs.225.55 on subdued volume of 2,278 shares, while the Sensex inched up 0.10%. These declines reflected the mixed technical backdrop, with weekly MACD and Know Sure Thing (KST) oscillators remaining bearish, and daily moving averages still mildly bearish. The On-Balance Volume (OBV) indicator showed no clear confirmation of price strength, contributing to the cautious market stance.
Weekly Price Performance: Steelcast Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.214.65 | +16.15% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.243.55 | +13.46% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.235.00 | -3.51% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.231.20 | -1.62% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.225.55 | -2.44% | 36,730.20 | +0.10% |
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Key Takeaways from the Week
Positive Signals: Steelcast Ltd’s 22.05% weekly gain significantly outperformed the Sensex’s 1.51% rise, driven by strong technical momentum and positive market sentiment early in the week. The stock’s ability to trade above all major moving averages on 3 February and reach an intraday high of Rs.252 highlights robust short-term buying interest. Long-term performance remains impressive, with five-year returns nearing 700%, underscoring strong fundamental support within the Castings & Forgings sector.
Cautionary Signals: Despite the rally, technical indicators present a mixed picture. Weekly and monthly MACD and KST oscillators remain bearish or mildly bearish, while daily moving averages have yet to confirm a sustained uptrend. The On-Balance Volume (OBV) indicator shows no clear volume confirmation, and the Mojo Score of 48.0 with a Sell rating reflects cautious analyst sentiment. The three-day correction following the peak suggests profit-taking and uncertainty about the sustainability of gains.
Conclusion
Steelcast Ltd’s week was characterised by a powerful rally early on, driven by a technical momentum shift and strong market enthusiasm, culminating in a 22.05% gain that outpaced the Sensex by a wide margin. However, the latter part of the week saw a measured pullback amid mixed technical signals and subdued volume, reflecting a cautious market stance. The stock’s long-term fundamentals remain strong, but near-term price action warrants close monitoring as investors weigh the balance between momentum and technical caution. The current Sell Mojo Grade and mixed oscillator readings suggest that while the rally has been impressive, confirmation of a sustained uptrend is still pending.
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