Unitech Ltd Faces Intensified Bearish Momentum Amid Technical Deterioration

Technical Momentum Shifts: From Mildly Bearish to Bearish

Recent technical analysis reveals that Unitech Ltd’s price momentum has shifted from a mildly bearish stance to a more pronounced bearish trend. The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, remains bearish on both weekly and monthly timeframes, underscoring sustained downward momentum. The weekly MACD line continues to trade below its signal line, confirming sellers’ dominance, while the monthly MACD also aligns with this negative outlook.

The Relative Strength Index (RSI), however, remains neutral with no clear signal on weekly or monthly charts, hovering in a range that neither indicates oversold nor overbought conditions. This suggests that while momentum is negative, the stock has not yet reached extreme levels that might prompt a technical rebound.

Bollinger Bands analysis further supports the bearish narrative, with both weekly and monthly bands mildly bearish. The price has been trending near the lower band, indicating persistent downward pressure but also hinting at potential volatility expansion. Daily moving averages also reflect a mildly bearish trend, with the stock price trading below key short-term averages, signalling resistance at higher levels.

Additional Technical Indicators Confirm Downtrend

The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, is bearish on the weekly chart and mildly bearish on the monthly chart, reinforcing the negative momentum. On balance volume (OBV), a volume-based indicator that tracks buying and selling pressure, is bearish on both weekly and monthly timeframes, indicating that volume is supporting the downtrend rather than contradicting it.

Interestingly, the Dow Theory presents a mixed picture: weekly signals are mildly bullish, suggesting some short-term optimism, but monthly signals remain mildly bearish, reflecting the longer-term downtrend. This divergence highlights the complexity of the current technical landscape and the potential for short-lived rallies amid an overall negative trend.

Price Action and Volatility

On 13 Feb 2026, Unitech’s shares traded within a range of ₹5.39 to ₹6.30, closing near the lower end of the day’s spectrum. The 52-week high stands at ₹10.50, while the 52-week low is ₹4.12, indicating significant volatility over the past year. The current price of ₹5.56 is closer to the lower end of this range, reflecting the stock’s struggle to regain upward momentum.

The sharp 10.9% decline on the day is a clear sign of intensified selling pressure, likely driven by the recent downgrade in the company’s Mojo Grade from Sell to Strong Sell on 30 Sep 2024. This downgrade reflects deteriorating fundamentals and technicals, with the Mojo Score now at a low 17.0, signalling weak investor confidence.

Comparative Performance: Unitech vs Sensex

Unitech’s recent returns present a mixed picture when compared with the broader market benchmark, the Sensex. Over the past week, Unitech outperformed significantly, delivering a 10.54% gain against the Sensex’s modest 0.43% rise. Similarly, over the last month, the stock posted a 3.54% gain while the Sensex declined by 0.24%.

However, year-to-date (YTD) performance has been negative for Unitech, with a 3.64% decline compared to the Sensex’s 1.81% fall. The one-year return is particularly concerning, with Unitech down 36.38% while the Sensex gained 9.85%, highlighting the stock’s underperformance amid broader market strength.

Longer-term returns tell a more positive story, with Unitech delivering a 241.10% return over three years and 208.89% over five years, substantially outperforming the Sensex’s 37.89% and 62.34% gains respectively. Yet, over the past decade, Unitech’s 39.00% return lags far behind the Sensex’s robust 264.02% growth, reflecting challenges in sustaining momentum over extended periods.

Market Capitalisation and Quality Grades

Unitech’s market capitalisation grade remains low at 3, consistent with its small-cap status and reflecting limited liquidity and market interest. The downgrade to a Strong Sell Mojo Grade on 30 Sep 2024 signals a significant deterioration in the company’s overall quality and outlook, driven by both fundamental and technical weaknesses.

Investors should note that the combination of bearish technical indicators, weak volume support, and poor relative strength suggests caution. The stock’s current technical trend is firmly bearish, with limited signs of near-term recovery.

Investor Takeaway and Outlook

Given the current technical landscape, Unitech Ltd appears to be in a precarious position. The convergence of bearish MACD, KST, OBV, and moving averages across multiple timeframes indicates sustained selling pressure. The absence of RSI signals suggests the stock has not yet reached oversold extremes, implying further downside risk remains.

While short-term rallies cannot be ruled out, especially given the mildly bullish weekly Dow Theory signal, the overall monthly outlook remains negative. Investors should weigh the stock’s recent underperformance against the Sensex and its low Mojo Score before considering exposure.

Long-term investors may find some solace in the company’s strong three- and five-year returns, but the recent technical deterioration and downgrade to Strong Sell warrant caution. Monitoring key support levels near ₹4.12 and resistance around ₹6.30 will be critical in assessing any potential reversal.

Conclusion

Unitech Ltd’s technical parameters have shifted decisively towards a bearish stance, with multiple indicators confirming a downtrend. The stock’s sharp decline on 13 Feb 2026, combined with a Strong Sell rating and weak market cap grade, underscores the challenges ahead. Investors should remain vigilant and consider alternative opportunities within the realty sector and beyond, as identified by MarketsMOJO’s comprehensive analysis.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →