Syncom Formulations Shares Shift to Bearish Momentum Amid Technical Downgrade

Technical Trend Overview and Price Movement

Syncom Formulations (India) Ltd, operating within the Pharmaceuticals & Biotechnology sector, currently trades at ₹13.56, down from a previous close of ₹14.02. The stock’s 52-week high stands at ₹23.46, while the 52-week low is ₹11.52, indicating a wide trading range over the past year. Today’s intraday price fluctuated between ₹13.35 and ₹13.99, underscoring volatility amid bearish technical signals.

The recent downgrade in the company’s Mojo Grade from Hold to Sell on 9 February 2026, with a current Mojo Score of 45.0, reflects a deteriorating technical outlook. This downgrade aligns with the broader technical trend shift from mildly bearish to bearish, signalling increased downside risk for investors.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bullish, suggesting some underlying positive momentum in the short term. However, the monthly MACD has turned mildly bearish, indicating that longer-term momentum is weakening. This divergence between weekly and monthly MACD readings highlights a potential conflict in trend direction, which may cause uncertainty among traders.

Complementing the MACD, the KST (Know Sure Thing) indicator is bearish on a weekly scale and mildly bearish monthly, reinforcing the notion of weakening momentum. The daily moving averages also confirm a bearish stance, with the stock trading below key averages, signalling downward pressure.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) on both weekly and monthly timeframes currently offers no clear signal, hovering in neutral zones. This absence of momentum extremes suggests the stock is neither overbought nor oversold, leaving room for further directional movement based on other technical factors.

Bollinger Bands, however, paint a more cautious picture. On a weekly basis, the bands indicate a bearish trend, with the stock price approaching the lower band, signalling potential downward pressure. Monthly Bollinger Bands are mildly bearish, reinforcing the likelihood of continued weakness in the medium term.

Volume and Dow Theory Signals

On-Balance Volume (OBV) shows no discernible trend on weekly or monthly charts, implying that volume is not confirming price movements decisively. This lack of volume support may limit the strength of any potential rallies.

Dow Theory readings are mixed, with weekly signals mildly bullish but monthly signals mildly bearish. This divergence suggests short-term optimism may be tempered by longer-term caution among market participants.

Comparative Performance Against Sensex

Examining Syncom Formulations’ returns relative to the Sensex reveals a complex performance profile. Over the past week, the stock has declined by 5.44%, significantly underperforming the Sensex’s modest 0.94% drop. However, over the last month, Syncom has gained 4.55%, outperforming the Sensex’s 0.35% decline.

Year-to-date, the stock is down 4.98%, lagging behind the Sensex’s 2.28% fall. Over the last year, Syncom has suffered a steep 22.82% loss, contrasting sharply with the Sensex’s 9.66% gain. Despite this, the company’s longer-term performance remains impressive, with a 3-year return of 90.45% versus the Sensex’s 35.81%, a 5-year return of 310.91% compared to 59.83%, and a 10-year return of 379.15% against the Sensex’s 259.08%.

This disparity highlights the stock’s volatility and cyclical nature, with strong long-term growth tempered by recent weakness and technical deterioration.

Implications for Investors

The current technical downgrade to a Sell rating and the bearish momentum indicators suggest caution for investors considering Syncom Formulations. The stock’s position below key moving averages and bearish Bollinger Bands imply potential further downside in the near term. The mixed signals from MACD and Dow Theory indicate that any short-term rallies may lack conviction without volume support.

Investors should weigh these technical risks against the company’s strong long-term returns and sector fundamentals. The Pharmaceuticals & Biotechnology sector remains a critical area for growth, but Syncom’s recent price action and technical signals warrant close monitoring.

Summary and Outlook

Syncom Formulations (India) Ltd’s technical landscape has shifted decisively towards bearishness, with multiple indicators signalling weakening momentum and increased downside risk. The downgrade from Hold to Sell by MarketsMOJO on 9 February 2026 reflects this deterioration, supported by a Mojo Score of 45.0 and a Market Cap Grade of 4.

While the stock’s long-term returns remain robust, recent price action and technical signals counsel prudence. Investors should monitor key support levels near ₹11.52 and watch for any reversal in MACD or moving averages before considering fresh positions. The absence of volume confirmation and mixed Dow Theory signals further suggest that any recovery attempts may be tentative.

In the context of the broader Pharmaceuticals & Biotechnology sector, Syncom’s current technical profile places it at a crossroads, where fundamental strength must be balanced against technical caution.

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