Sudarshan Chemical Industries Ltd Technical Momentum Shifts Amid Mixed Indicators

Technical Trend Overview

The latest technical analysis reveals that Sudarshan Chemical Industries Ltd’s trend has softened from outright bearish to mildly bearish. This subtle shift is underscored by a divergence in weekly and monthly indicators. The Moving Average Convergence Divergence (MACD) on a weekly basis has turned mildly bullish, suggesting some short-term positive momentum. Conversely, the monthly MACD remains mildly bearish, indicating that the longer-term trend has yet to confirm a sustained recovery.

The Relative Strength Index (RSI) offers a neutral stance, with no clear signals on either the weekly or monthly charts. This lack of directional momentum from RSI suggests that the stock is neither overbought nor oversold, leaving room for potential volatility depending on broader market conditions.

Moving Averages and Bollinger Bands Signal Caution

Daily moving averages continue to reflect a bearish outlook, with the stock price currently trading below key averages. This bearish alignment is reinforced by the Bollinger Bands, which show a bearish trend on the weekly chart and a mildly bearish stance on the monthly chart. The contraction of Bollinger Bands in recent sessions indicates reduced volatility but also signals a potential for a breakout in either direction.

The KST (Know Sure Thing) indicator presents a mixed view, mildly bullish on the weekly timeframe but mildly bearish monthly, mirroring the MACD’s conflicting signals. Meanwhile, Dow Theory analysis shows no clear trend on the weekly chart but a mildly bearish trend monthly, reinforcing the cautious sentiment among technical analysts.

Volume and On-Balance Volume (OBV) Trends

Volume-based indicators add further complexity. The On-Balance Volume (OBV) shows no discernible trend on the weekly chart and a mildly bearish trend monthly. This suggests that despite some price movements, the volume supporting these moves is not decisively bullish, which may limit the sustainability of any upward momentum.

Price Performance and Market Context

At the time of analysis, Sudarshan Chemical Industries Ltd is trading at ₹916.00, down 1.05% from the previous close of ₹925.75. The stock’s 52-week high stands at ₹1,604.00, while the 52-week low is ₹795.75, indicating a wide trading range and significant volatility over the past year. Today’s intraday range has been between ₹887.00 and ₹920.00, reflecting ongoing market uncertainty.

When compared with the benchmark Sensex, Sudarshan Chem’s returns present a mixed picture. Over the past week, the stock has underperformed, declining by 5.12% against the Sensex’s modest 0.94% fall. However, over the one-month horizon, the stock has rebounded with a 3.50% gain, outperforming the Sensex’s 0.35% decline. Year-to-date, the stock is down 3.33%, slightly worse than the Sensex’s 2.28% fall, while over one year, it has marginally increased by 0.71% compared to the Sensex’s robust 9.66% gain.

Longer-term returns are more favourable for Sudarshan Chem, with a three-year return of 153.56% vastly outperforming the Sensex’s 35.81%. Over five years, the stock has gained 82.25%, compared to the Sensex’s 59.83%, and over a decade, it has surged an impressive 1,021.86%, dwarfing the Sensex’s 259.08% rise. These figures highlight the company’s strong growth trajectory despite recent technical setbacks.

Mojo Score and Rating Implications

MarketsMOJO has recently downgraded Sudarshan Chemical Industries Ltd’s Mojo Grade from Sell to Strong Sell as of 14 Feb 2026, reflecting a deteriorating technical and fundamental outlook. The current Mojo Score stands at 26.0, signalling weak momentum and caution for investors. The Market Cap Grade is rated 3, indicating a mid-tier market capitalisation relative to peers in the dyes and pigments sector.

This downgrade aligns with the technical indicators’ mixed signals and the recent price weakness. The Strong Sell rating suggests that investors should exercise prudence and consider alternative opportunities within the sector or broader market.

Sector and Industry Context

Sudarshan Chemical operates within the dyes and pigments industry, a sector that has faced headwinds due to fluctuating raw material costs and global demand uncertainties. The sector’s performance has been uneven, with some companies showing resilience through innovation and cost management, while others struggle with margin pressures.

Given Sudarshan Chem’s technical indicators and recent price action, the stock appears to be grappling with these sectoral challenges. The mildly bearish monthly technical signals suggest that the company has yet to fully stabilise its momentum amid these headwinds.

Investor Takeaways and Outlook

For investors, the current technical landscape of Sudarshan Chemical Industries Ltd presents a cautious scenario. The weekly mildly bullish MACD and KST indicators offer some hope for short-term recovery, but the prevailing monthly bearish signals and daily moving averages caution against aggressive positioning.

Price volatility within the ₹795.75 to ₹1,604.00 range over the past year underscores the need for careful risk management. The stock’s underperformance relative to the Sensex in the short term contrasts with its impressive long-term returns, suggesting that patient investors with a higher risk tolerance may find value in a strategic entry at lower levels.

However, the recent downgrade to Strong Sell by MarketsMOJO and the low Mojo Score highlight the importance of monitoring technical developments closely before committing capital.

Conclusion

Sudarshan Chemical Industries Ltd’s recent technical parameter changes reflect a stock at a crossroads. While short-term indicators hint at mild bullishness, the overarching monthly trends and moving averages maintain a bearish bias. The downgrade to a Strong Sell rating by MarketsMOJO further emphasises the need for caution.

Investors should weigh the stock’s impressive long-term returns against its current technical challenges and sectoral headwinds. Close monitoring of momentum indicators and volume trends will be essential to identify any sustainable reversal. Until then, a conservative approach is advisable, with consideration given to alternative investments within the dyes and pigments sector or broader market opportunities.

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