Synergy Green Industries Ltd Shows Mixed Technical Signals Amid Mildly Bullish Momentum

Technical Trend Shift and Price Movement

The stock closed at ₹514.00, up from the previous close of ₹505.25, marking a daily increase of 1.73%. This price movement is notable given the broader market context, where the Sensex has shown a more subdued performance over recent weeks. Synergy Green’s 52-week high stands at ₹632.35, while the 52-week low is ₹344.00, indicating a significant range of volatility over the past year.

The recent mild bullish trend marks a departure from the previously mildly bearish technical outlook. This shift is supported by daily moving averages that have turned mildly bullish, suggesting that short-term momentum is gaining strength. However, the weekly and monthly technical indicators provide a more complex narrative.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart, signalling that the medium-term momentum has yet to fully confirm a sustained uptrend. On the monthly timeframe, the MACD is mildly bearish, indicating that while there is some positive momentum, it is not yet robust enough to signal a strong buy.

In contrast, the Relative Strength Index (RSI) presents a more optimistic view on the monthly scale, registering a bullish signal. This suggests that the stock is gaining strength and may be moving out of oversold territory, potentially attracting renewed buying interest. The weekly RSI, however, remains neutral with no clear signal, reflecting indecision among traders in the short term.

Bollinger Bands and Moving Averages

Bollinger Bands, which measure volatility and price levels relative to recent averages, show a mildly bearish stance on the weekly chart but a bullish signal on the monthly chart. This divergence indicates that while short-term price fluctuations remain somewhat constrained, the longer-term trend is improving, possibly foreshadowing a breakout if momentum continues to build.

Daily moving averages have turned mildly bullish, reinforcing the notion that short-term price momentum is improving. This is a positive sign for traders looking for entry points, as it suggests that the stock price is beginning to trend upwards after a period of consolidation.

Other Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator remains bearish on both weekly and monthly charts, signalling that despite some short-term improvements, the overall momentum remains weak. This suggests caution for investors as the stock has yet to demonstrate a convincing upward trend across all momentum measures.

Dow Theory analysis shows no clear trend on either weekly or monthly timeframes, indicating that the stock is in a phase of consolidation without a definitive directional bias. Similarly, the On-Balance Volume (OBV) indicator shows no trend on the weekly chart and a mildly bearish trend on the monthly chart, implying that volume flows have not yet confirmed a strong buying interest.

Comparative Returns and Market Context

From a returns perspective, Synergy Green Industries Ltd has outperformed the Sensex significantly over longer time horizons. The stock has delivered a 1-year return of 23.66%, compared to the Sensex’s 8.65%. Over three years, the stock’s return is an impressive 288.66%, vastly exceeding the Sensex’s 36.79%. Even over five years, Synergy Green has surged by 441.05%, dwarfing the Sensex’s 68.52% gain.

However, in the short term, the stock has underperformed the Sensex. Over the past week, Synergy Green declined by 2.1%, compared to the Sensex’s 0.75% fall. Similarly, over the last month, the stock dropped 3.14%, while the Sensex fell 1.98%. Year-to-date, Synergy Green has marginally increased by 0.09%, outperforming the Sensex’s 2.32% decline. These mixed returns highlight the stock’s volatility and the importance of monitoring technical signals closely.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Synergy Green a Mojo Score of 47.0, reflecting a cautious stance. The Mojo Grade was downgraded from Hold to Sell on 5 August 2025, signalling a deterioration in the stock’s overall outlook. The Market Cap Grade stands at 4, indicating a relatively small market capitalisation, which may contribute to higher volatility and risk.

Given the mixed technical signals and the downgrade in rating, investors should weigh the potential for short-term gains against the risks of continued volatility and uncertain momentum confirmation.

Investor Takeaway and Outlook

Synergy Green Industries Ltd’s recent mild bullish shift in daily moving averages and monthly RSI suggests that the stock may be entering a phase of recovery after a period of consolidation. However, the persistence of bearish signals in MACD, KST, and OBV on weekly and monthly charts advises caution.

Investors should monitor the stock’s ability to break above key resistance levels near its recent highs and watch for confirmation from volume and momentum indicators. The lack of a clear Dow Theory trend further emphasises the need for prudence, as the stock could remain range-bound in the near term.

Long-term investors may find the stock’s historical outperformance attractive, but short-term traders should be mindful of the mixed technical signals and the recent downgrade in analyst ratings. A balanced approach, combining technical analysis with fundamental insights, will be essential to navigate the stock’s evolving momentum.

Summary

In summary, Synergy Green Industries Ltd is exhibiting a tentative shift towards bullish momentum, supported by daily moving averages and monthly RSI. However, bearish MACD and KST readings, alongside neutral Dow Theory signals, suggest that the stock’s upward move is not yet fully confirmed. The stock’s strong long-term returns contrast with recent short-term volatility, underscoring the importance of a cautious and well-informed investment strategy.

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