Synergy Green Industries Ltd Faces Technical Momentum Shift Amid Bearish Signals

Technical Trend Shift and Price Movement

As of 22 Jan 2026, Synergy Green Industries Ltd closed at ₹484.50, down 2.08% from the previous close of ₹494.80. The stock’s intraday range was between ₹480.05 and ₹493.95, reflecting heightened volatility. Over the past week, the stock has declined by 7.62%, significantly underperforming the Sensex’s 1.77% drop in the same period. The one-month return also paints a similar picture, with Synergy Green down 8.7% compared to the Sensex’s 3.56% fall. Year-to-date, the stock is down 5.66%, lagging behind the benchmark’s 3.89% decline.

Despite these short-term setbacks, the stock has delivered robust long-term returns, with a 1-year gain of 9.62% versus the Sensex’s 8.01%, and an impressive 3-year return of 269.57% compared to the Sensex’s 35.12%. Over five years, Synergy Green’s return of 361.43% dwarfs the Sensex’s 65.06%, highlighting the company’s strong growth trajectory in the medium to long term.

MACD and Momentum Indicators Signal Bearishness

The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, presents a bearish outlook on the weekly chart, with the MACD line positioned below the signal line, indicating downward momentum. On the monthly chart, the MACD is mildly bearish, suggesting that while the longer-term trend is not decisively negative, caution is warranted as momentum weakens.

Complementing this, the Know Sure Thing (KST) indicator also reflects bearishness on the weekly timeframe and mildly bearish conditions monthly, reinforcing the view of a decelerating price momentum. These signals collectively point to a potential continuation of downward pressure in the near term.

RSI and Moving Averages: Mixed Signals

The Relative Strength Index (RSI) remains neutral on both weekly and monthly charts, showing no clear overbought or oversold conditions. This lack of a definitive RSI signal suggests that the stock is not currently in an extreme momentum state, but the absence of bullish RSI readings tempers optimism.

Moving averages on the daily chart provide a mildly bullish signal, with short-term averages slightly above longer-term averages, indicating some underlying support. However, this mild bullishness is overshadowed by the broader bearish momentum seen in weekly and monthly indicators.

Bollinger Bands and On-Balance Volume (OBV) Insights

Bollinger Bands reveal a bearish stance on the weekly chart, with the price trending near the lower band, signalling increased selling pressure. Contrastingly, the monthly Bollinger Bands show a mildly bullish pattern, suggesting that volatility may be stabilising over the longer term.

On-Balance Volume (OBV), which measures buying and selling pressure, is mildly bearish on both weekly and monthly charts. This indicates that volume trends are not supporting a strong price recovery, and selling activity may be prevailing.

Dow Theory and Sector Context

According to Dow Theory, the weekly trend for Synergy Green is mildly bullish, indicating some resilience in the short term despite the prevailing bearish momentum from other indicators. The monthly Dow Theory trend shows no clear direction, reflecting uncertainty in the broader market context for the Castings & Forgings sector.

Within its industry, Synergy Green’s current Mojo Score stands at 31.0, categorised as a Sell, a downgrade from its previous Hold rating as of 5 Aug 2025. The Market Cap Grade is 4, reflecting its micro-cap status, which often entails higher volatility and risk compared to larger peers.

Valuation and Price Range Analysis

The stock’s 52-week high is ₹632.35, while the low is ₹344.00, placing the current price of ₹484.50 roughly midway within this range. This positioning suggests that while the stock has retraced from recent highs, it remains well above its annual lows, indicating some underlying support despite recent weakness.

Investors should note the daily moving averages’ mildly bullish stance, which may provide short-term support levels near the current price. However, the broader technical signals caution against aggressive accumulation until clearer bullish momentum emerges.

Investment Implications and Outlook

Synergy Green Industries Ltd’s technical landscape is currently characterised by a shift towards bearish momentum, particularly on weekly timeframes. The combination of a bearish MACD, weak OBV, and Bollinger Bands near the lower range suggests that selling pressure is dominant in the short term. The neutral RSI and mildly bullish daily moving averages offer some counterbalance but are insufficient to offset the broader negative signals.

Given the downgrade in Mojo Grade from Hold to Sell and the stock’s underperformance relative to the Sensex in recent weeks and months, investors should exercise caution. The long-term growth story remains intact, supported by strong multi-year returns, but near-term price action may be volatile and prone to further declines.

Conclusion: Navigating the Current Technical Landscape

In summary, Synergy Green Industries Ltd is navigating a complex technical environment marked by a shift from sideways to mildly bearish momentum. While some daily indicators hint at short-term support, the prevailing weekly and monthly signals caution investors about potential downside risks. The downgrade in Mojo Grade to Sell reflects this cautious stance, underscoring the need for careful monitoring of price action and volume trends.

Investors with a long-term horizon may find value in the company’s strong historical returns and sector positioning, but those focused on near-term trading should heed the bearish technical signals and consider risk management strategies accordingly. Continued observation of MACD crossovers, RSI levels, and moving average interactions will be critical in assessing any reversal or further deterioration in momentum.

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