Current Price and Market Context
As of 26 Feb 2026, Sudarshan Chemical Industries Ltd is trading at ₹889.25, slightly up from the previous close of ₹888.15. The stock’s 52-week high stands at ₹1,604.00, while the 52-week low is ₹795.75, indicating a wide trading range over the past year. Today’s intraday high and low were ₹908.95 and ₹887.00 respectively, reflecting moderate volatility within the session.
Technical Trend Evolution
The technical trend for Sudarshan Chemical has shifted from mildly bearish to bearish, signalling increased downside pressure. This transition is corroborated by several key indicators. The daily moving averages are firmly bearish, suggesting that short-term momentum is weakening. Meanwhile, the Bollinger Bands on both weekly and monthly charts are bearish, indicating that price volatility is skewed towards the downside and the stock is trading near the lower band, a sign of potential overselling but also persistent selling pressure.
MACD and Momentum Oscillators
The Moving Average Convergence Divergence (MACD) presents a mixed picture. On the weekly timeframe, the MACD remains mildly bullish, hinting at some underlying positive momentum in the short term. However, the monthly MACD is mildly bearish, reflecting a longer-term weakening trend. This divergence between weekly and monthly MACD readings suggests that while short-term traders might find some buying opportunities, the broader trend remains under pressure.
The Know Sure Thing (KST) indicator aligns with this mixed momentum. It is mildly bullish on the weekly chart but mildly bearish on the monthly, reinforcing the notion of short-term resilience amid longer-term caution.
Relative Strength Index (RSI) and Volume Trends
The RSI readings on both weekly and monthly charts currently show no clear signal, hovering in neutral territory. This lack of directional RSI momentum indicates that the stock is neither overbought nor oversold, which could imply a consolidation phase or indecision among market participants.
On the volume front, the On-Balance Volume (OBV) indicator is mildly bearish on both weekly and monthly timeframes. This suggests that selling volume is slightly outweighing buying volume, a subtle but important factor that supports the bearish technical trend.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
Moving Averages and Dow Theory
The daily moving averages are bearish, confirming the short-term downtrend. This is a critical signal for traders relying on moving average crossovers and trend-following strategies. The Dow Theory readings add nuance: weekly signals are mildly bullish, suggesting some short-term optimism, but monthly signals are mildly bearish, reinforcing the longer-term cautionary stance.
Comparative Performance and Market Capitalisation
From a returns perspective, Sudarshan Chemical Industries Ltd has underperformed the Sensex over most recent periods. The stock posted a 1-week return of -3.08% compared to the Sensex’s -1.74%, and a year-to-date return of -6.15% versus the Sensex’s -3.46%. Over the one-year horizon, the stock’s return was a mere 0.11%, significantly lagging the Sensex’s 10.29% gain.
However, the company’s longer-term performance remains impressive, with a 3-year return of 143.50% outpacing the Sensex’s 38.36%, and a 10-year return of 995.81% dwarfing the Sensex’s 258.10%. This highlights Sudarshan Chemical’s strong historical growth, though recent momentum has slowed considerably.
The company holds a Market Cap Grade of 3, indicating a mid-tier market capitalisation relative to its peers in the dyes and pigments sector.
Mojo Score and Analyst Ratings
MarketsMOJO assigns Sudarshan Chemical a Mojo Score of 31.0, with a current Mojo Grade of Sell. This represents a downgrade from the previous Strong Sell rating on 24 Feb 2026, signalling a slight improvement in outlook but still a negative stance overall. The downgrade reflects the mixed technical signals and the bearish trend that dominates the daily and monthly charts.
Investment Implications
Investors should approach Sudarshan Chemical with caution given the prevailing bearish technical indicators. The divergence between short-term mildly bullish signals and longer-term bearish trends suggests potential volatility ahead. The stock’s proximity to its 52-week low and the bearish Bollinger Bands imply downside risk, while neutral RSI readings indicate no immediate oversold bounce is guaranteed.
Long-term investors may find value in the company’s strong historical returns and sector positioning, but short-term traders should heed the bearish moving averages and volume trends. Monitoring the MACD and KST indicators for any sustained bullish crossover could provide early signs of a trend reversal.
Holding Sudarshan Chemical Industries Ltd from Dyes And Pigments? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Sector Outlook and Broader Market Context
The dyes and pigments sector has faced headwinds recently due to fluctuating raw material costs and global supply chain disruptions. Sudarshan Chemical’s technical weakness mirrors sector-wide challenges, though its long-term growth trajectory remains intact. Investors should weigh sector fundamentals alongside technical signals when considering exposure.
Conclusion
Sudarshan Chemical Industries Ltd’s technical parameters reveal a nuanced picture: short-term indicators offer mild bullish hints, but the dominant trend is bearish, especially on daily and monthly timeframes. The downgrade in Mojo Grade to Sell underscores the need for prudence. While the stock’s long-term returns are impressive, recent momentum and volume trends suggest caution for near-term trading. Investors should monitor key technical indicators closely and consider sector dynamics before making allocation decisions.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
