Uni Abex Alloy Products Ltd Faces Bearish Momentum Amid Technical Downturn

Technical Trend Shift and Price Movement

Uni Abex Alloy Products Ltd, operating within the Iron & Steel Products sector, currently trades at ₹2,965.00, up 0.86% from the previous close of ₹2,939.80. The stock’s intraday range on 1 February 2026 spanned from ₹2,858.00 to ₹2,990.00, reflecting some volatility but limited upward momentum. The 52-week high stands at ₹3,995.00, while the 52-week low is ₹1,820.05, indicating a wide trading band over the past year.

However, the broader technical trend has shifted from mildly bearish to outright bearish, signalling increased downside risk. This shift is corroborated by multiple technical indicators across different timeframes, suggesting that the stock may face continued pressure in the near term.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart and mildly bearish on the monthly chart. This divergence suggests that while short-term momentum is weak, longer-term momentum is only slightly negative but not yet showing signs of recovery. The bearish weekly MACD indicates that recent price action has lost upward momentum, with the MACD line likely below the signal line and both positioned under the zero line.

Complementing this, the Know Sure Thing (KST) indicator also reflects bearishness on the weekly timeframe and mild bearishness monthly, reinforcing the view that momentum is waning. The KST’s bearish readings typically imply that the stock’s price gains are losing steam and could be vulnerable to further declines.

Relative Strength Index and Bollinger Bands

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in a neutral zone. This suggests that the stock is neither overbought nor oversold, leaving room for further directional movement either way. However, the Bollinger Bands present a more concerning picture, with bearish signals on both weekly and monthly timeframes. The price is likely trading near or below the lower band, indicating increased volatility and a potential downtrend continuation.

Moving Averages and Daily Technicals

Daily moving averages are firmly bearish, with the stock price trading below key averages such as the 50-day and 200-day moving averages. This alignment typically signals a negative trend and suggests that short-term traders and investors may remain cautious. The lack of upward crossover in moving averages further diminishes the likelihood of a near-term rally.

Dow Theory and On-Balance Volume

According to Dow Theory, the weekly chart shows no clear trend, while the monthly chart is mildly bearish. This mixed signal indicates some uncertainty in the broader market sentiment towards the stock. Unfortunately, On-Balance Volume (OBV) data is unavailable for both weekly and monthly periods, limiting the ability to assess volume-driven price momentum conclusively.

Comparative Returns and Market Context

Despite recent technical weaknesses, Uni Abex Alloy Products Ltd has delivered impressive long-term returns relative to the Sensex. Over the past year, the stock has gained 18.44%, outperforming the Sensex’s 7.18% return. Over three and five years, the stock’s returns have been extraordinary at 357.00% and 647.23% respectively, dwarfing the Sensex’s 38.27% and 77.74% gains. Even over a decade, Uni Abex Alloy’s 418.36% return significantly exceeds the Sensex’s 230.79%.

However, short-term performance has been less encouraging. The stock has declined 0.78% over the past week and 2.07% over the last month, underperforming the Sensex’s 0.90% and 2.84% gains respectively. Year-to-date, the stock is down 5.11%, compared to the Sensex’s 3.46% decline, reflecting the recent bearish technical signals.

Mojo Score and Grade Downgrade

MarketsMOJO assigns Uni Abex Alloy Products Ltd a Mojo Score of 40.0, reflecting a weak technical and fundamental outlook. The Mojo Grade was downgraded from Hold to Sell on 19 January 2026, signalling increased caution among analysts. The Market Cap Grade stands at 4, indicating a relatively small market capitalisation compared to larger peers in the Iron & Steel Products sector.

This downgrade aligns with the technical deterioration observed across multiple indicators and timeframes, suggesting that investors should be wary of potential downside risks in the near term.

Sector and Industry Considerations

Operating within the Iron & Steel Products industry, Uni Abex Alloy faces sector-specific headwinds including fluctuating raw material costs, global demand uncertainties, and regulatory pressures. The bearish technical signals may partly reflect these broader challenges, which could weigh on earnings and investor sentiment.

Investors should also consider the stock’s valuation relative to peers and the overall sector outlook before making investment decisions. While the long-term returns have been robust, the current technical setup advises prudence.

Investor Takeaway

Uni Abex Alloy Products Ltd’s recent technical deterioration, highlighted by bearish MACD, Bollinger Bands, and moving averages, suggests that the stock is currently in a downtrend phase. The absence of strong RSI signals and mixed Dow Theory readings add some uncertainty, but the overall momentum points to caution.

While the stock’s long-term returns remain impressive, short-term investors should be mindful of the increased risk of further declines. The downgrade to a Sell rating by MarketsMOJO reflects this cautious stance. Investors with a higher risk tolerance may consider monitoring for signs of technical reversal before initiating new positions.

Given the sector challenges and technical signals, portfolio diversification and consideration of alternative stocks with stronger momentum may be prudent strategies at this juncture.

Conclusion

In summary, Uni Abex Alloy Products Ltd is currently exhibiting bearish price momentum across key technical indicators, signalling a potential continuation of downward pressure. The downgrade in Mojo Grade to Sell underscores the need for investors to reassess their exposure. While the stock’s historical performance has been strong, the present technical landscape advises caution and close monitoring of price action and volume trends.

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