Syncom Formulations Shares Shift to Bearish Momentum Amid Technical Downgrade

Technical Trend Shift and Price Movement

Syncom Formulations’ current share price stands at ₹13.07, down from the previous close of ₹13.62. The stock’s 52-week high is ₹23.46, while the low is ₹11.52, indicating a significant range of volatility over the past year. Today’s trading saw a high of ₹13.61 and a low of ₹13.07, underscoring the pressure on the stock in recent sessions.

The technical trend has shifted from mildly bearish to outright bearish, signalling increased downside risk. This shift is corroborated by the daily moving averages, which remain bearish, suggesting that the stock is trading below key average price levels and that downward momentum is likely to persist in the near term.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator, a widely followed momentum oscillator, presents a mixed but predominantly negative picture. On a weekly basis, the MACD is bearish, indicating that the short-term momentum is weaker than the longer-term trend. The monthly MACD is mildly bearish, suggesting some underlying weakness but with less conviction than the weekly signal.

These MACD readings imply that the stock’s momentum is deteriorating, with the potential for further declines if the bearish crossover persists. Investors should note that the MACD’s bearish stance aligns with the recent price drop and the downward pressure from moving averages.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI), which measures the speed and change of price movements, currently shows no clear signal on both weekly and monthly charts. This neutral RSI reading suggests that the stock is neither oversold nor overbought, leaving room for further directional movement based on other technical factors.

Meanwhile, Bollinger Bands, which track price volatility and potential reversal points, are bearish on the weekly timeframe and mildly bearish on the monthly. The stock price is likely trading near or below the lower band on the weekly chart, indicating increased volatility and a bearish bias. This technical setup often precedes continued downward price action unless a strong reversal catalyst emerges.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change calculations, is bearish on the weekly chart and mildly bearish on the monthly. This reinforces the view that momentum is weakening across multiple timeframes.

Interestingly, the Dow Theory presents a mildly bullish signal on the weekly timeframe but mildly bearish on the monthly. This divergence suggests some short-term optimism possibly driven by minor rallies or sector-specific news, but the longer-term trend remains under pressure.

On-Balance Volume (OBV), which measures buying and selling pressure, is mildly bullish weekly but shows no clear trend monthly. This could indicate some accumulation by investors in the short term, but the lack of a sustained trend on the monthly chart tempers enthusiasm.

Comparative Performance Versus Sensex

Syncom Formulations’ recent returns have lagged behind the broader market benchmark, the Sensex. Over the past week, the stock declined by 8.22%, significantly underperforming the Sensex’s modest 1.41% loss. Over one month, however, Syncom posted a 3.24% gain, outperforming the Sensex’s 0.90% decline, suggesting some intermittent strength.

Year-to-date, the stock remains down 8.41%, compared with the Sensex’s 3.19% loss, highlighting persistent underperformance. Over the last year, Syncom’s stock has fallen 23.16%, while the Sensex gained 8.64%, reflecting sector-specific or company-specific challenges.

Longer-term returns tell a more positive story, with Syncom delivering 84.08% over three years versus the Sensex’s 35.24%, 276.66% over five years compared to the Sensex’s 62.11%, and an impressive 363.48% over ten years against the Sensex’s 247.96%. This indicates that despite recent weakness, the company has historically rewarded patient investors with substantial gains.

Mojo Score and Grade Downgrade

MarketsMOJO has downgraded Syncom Formulations’ Mojo Grade from Hold to Sell as of 09 Feb 2026, reflecting the deteriorating technical outlook and weaker momentum signals. The current Mojo Score stands at 40.0, a level that suggests caution for investors. The Market Cap Grade is 4, indicating a mid-tier market capitalisation within its sector.

This downgrade aligns with the bearish technical indicators and recent price action, signalling that investors should reassess their positions and consider risk management strategies.

Investor Takeaway and Outlook

Syncom Formulations’ technical indicators collectively point to a bearish momentum shift, with the MACD, moving averages, Bollinger Bands, and KST all signalling downside risk. The absence of strong RSI signals suggests the stock is not yet oversold, implying further room for price declines.

While short-term indicators such as OBV and Dow Theory weekly readings offer mild bullish hints, these are insufficient to offset the broader negative trend. The downgrade in Mojo Grade to Sell reinforces the need for caution.

Investors should closely monitor support levels near the 52-week low of ₹11.52 and watch for any reversal signals in momentum indicators before considering fresh positions. Given the stock’s historical outperformance over longer periods, patient investors may find opportunities if the technical situation stabilises.

However, in the current environment, risk-averse investors might prefer to reduce exposure or explore alternative pharmaceutical and biotechnology stocks with stronger technical profiles and more favourable momentum.

Sector Context

The Pharmaceuticals & Biotechnology sector has faced mixed fortunes recently, with regulatory pressures and competitive dynamics impacting valuations. Syncom’s technical weakness may partly reflect sector headwinds, underscoring the importance of comparative analysis within the industry.

Investors should consider broader sector trends alongside company-specific technical signals to make informed decisions.

Summary

In summary, Syncom Formulations is currently navigating a challenging technical landscape marked by bearish momentum and a recent downgrade in its investment grade. While longer-term returns have been robust, near-term risks dominate the technical outlook. Investors are advised to exercise caution and consider peer comparisons before committing capital.

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