Technical Trend Overview
The latest technical assessment reveals a clear deterioration in Summit Securities Ltd’s momentum. The stock’s technical trend has shifted from mildly bearish to outright bearish, reflecting increased selling pressure. The Moving Average Convergence Divergence (MACD) indicator, a widely followed momentum oscillator, remains bearish on the weekly chart and mildly bearish on the monthly timeframe, signalling sustained downward momentum over both short and medium terms.
Complementing this, the Relative Strength Index (RSI) presents a nuanced picture. While the weekly RSI is bullish, indicating some short-term buying interest or oversold conditions potentially leading to a bounce, the monthly RSI offers no clear signal, suggesting a lack of conviction in longer-term momentum. This divergence between weekly and monthly RSI readings highlights the stock’s current technical uncertainty.
Moving Averages and Bollinger Bands
Daily moving averages for Summit Securities Ltd are firmly bearish, with the stock price trading below key averages such as the 50-day and 200-day moving averages. This positioning typically signals a downtrend and acts as resistance to upward price movement. Additionally, Bollinger Bands on both weekly and monthly charts are bearish, indicating that the stock price is trending towards the lower band, which often reflects increased volatility and downward pressure.
The KST (Know Sure Thing) oscillator, another momentum indicator, aligns with this bearish outlook on the weekly chart and remains mildly bearish on the monthly chart, reinforcing the negative momentum across multiple timeframes.
Volume and Dow Theory Signals
On-Balance Volume (OBV) analysis shows a mildly bullish signal on the weekly chart, suggesting that volume trends may be supporting some accumulation in the short term. However, the monthly OBV is mildly bearish, indicating that longer-term volume trends do not support a sustained rally. Dow Theory readings add further complexity: weekly signals are mildly bullish, hinting at potential short-term recovery attempts, but the monthly trend remains neutral with no clear directional bias.
Price Performance and Market Comparison
Summit Securities Ltd’s current price stands at ₹1,761.25, down from the previous close of ₹1,778.90, marking a day change of -0.99%. The stock’s 52-week high is ₹2,559.00, while the 52-week low is ₹1,361.95, indicating a wide trading range and significant volatility over the past year.
When compared to the Sensex, Summit Securities Ltd has underperformed across most recent timeframes. Over the past week, the stock declined by 2.43% versus the Sensex’s 1.14% drop. The one-month return shows a 3.24% loss against the Sensex’s 1.20% decline. Year-to-date, the stock has fallen 9.46%, considerably worse than the Sensex’s 3.04% drop. Even over the one-year horizon, Summit Securities Ltd’s return is marginally negative at -0.38%, while the Sensex gained 8.52%.
However, the longer-term performance remains impressive, with the stock delivering a 195.51% return over three years and 189.27% over five years, significantly outpacing the Sensex’s 36.73% and 60.30% returns respectively. Over a decade, the stock has surged 683.47%, dwarfing the Sensex’s 259.46% gain, underscoring its historical growth potential despite recent setbacks.
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Mojo Score and Ratings Update
MarketsMOJO’s latest evaluation assigns Summit Securities Ltd a Mojo Score of 26.0, categorising it as a Strong Sell. This represents a downgrade from the previous Sell rating, effective from 13 February 2026. The Market Cap Grade remains low at 3, reflecting concerns about the company’s market valuation relative to its peers.
The downgrade is consistent with the deteriorating technical indicators and the stock’s recent price underperformance. Investors should note that the Strong Sell rating is a clear signal to exercise caution and consider risk management strategies.
Implications for Investors
The mixed technical signals present a challenging environment for investors in Summit Securities Ltd. While short-term indicators such as the weekly RSI and OBV suggest some potential for a bounce or consolidation, the dominant trend remains bearish across multiple timeframes and technical tools. The stock’s failure to sustain above key moving averages and the bearish MACD and Bollinger Bands readings reinforce the likelihood of continued downward pressure.
Given the stock’s underperformance relative to the Sensex and the downgrade to a Strong Sell rating, investors may want to reassess their exposure. The long-term growth story remains intact, but near-term risks appear elevated, warranting a cautious approach.
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Summary and Outlook
Summit Securities Ltd’s technical profile is currently dominated by bearish momentum, with multiple indicators signalling caution. The stock’s inability to break above key resistance levels and the downgrade to a Strong Sell rating by MarketsMOJO underscore the risks facing investors in the near term. While some short-term bullish signals exist, they are insufficient to offset the broader negative trend.
Investors should closely monitor the stock’s price action around support levels near ₹1,750 and watch for any sustained improvement in volume and momentum indicators before considering fresh exposure. Given the stock’s historical outperformance over longer periods, a recovery remains possible, but patience and disciplined risk management will be essential.
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