United Polyfab Gujarat Ltd Faces Bearish Momentum Amid Mixed Technical Signals

Price Movement and Market Context

As of 3 Feb 2026, United Polyfab Gujarat Ltd closed at ₹29.52, down 1.93% from the previous close of ₹30.10. The stock traded within a narrow intraday range, hitting a high of ₹30.00 and a low of ₹29.01. This price level remains significantly below its 52-week high of ₹191.85, underscoring the steep decline the stock has endured over the past year.

Comparatively, the stock’s returns have been underwhelming against the broader market benchmark, the Sensex. Over the past week, United Polyfab declined by 0.24%, while the Sensex gained 0.16%. Over the one-month period, however, the stock posted a 5.88% gain, contrasting with the Sensex’s 4.71% loss. Year-to-date, the stock has surged 16.68%, outperforming the Sensex’s negative 3.98% return. Despite these short-term gains, the longer-term performance remains bleak, with a one-year return of -82.49% versus the Sensex’s 6.84% gain, and a three-year return of -70.38% compared to the Sensex’s robust 42.46% growth.

Technical Trend Shift: From Mildly Bearish to Bearish

Recent technical analysis indicates a shift in the stock’s trend from mildly bearish to outright bearish. This change reflects increasing downside momentum and weakening investor confidence. The daily moving averages are firmly bearish, signalling that the stock price is trading below key average price levels, which often acts as resistance in the near term.

The weekly and monthly technical indicators present a mixed picture. The Moving Average Convergence Divergence (MACD) indicator is mildly bullish on the weekly chart but bearish on the monthly chart. This divergence suggests short-term attempts at recovery are being offset by longer-term downward pressure.

RSI and Momentum Indicators

The Relative Strength Index (RSI) on the weekly chart currently shows no clear signal, hovering in a neutral zone that neither indicates overbought nor oversold conditions. Conversely, the monthly RSI is bullish, suggesting that on a longer timeframe, the stock may be gaining some upward momentum. This discrepancy between weekly and monthly RSI readings highlights the stock’s volatile nature and the difficulty in pinpointing a definitive trend.

Other momentum indicators such as the Know Sure Thing (KST) are bearish on both weekly and monthly charts, reinforcing the prevailing downward pressure. The Bollinger Bands also reflect bearishness on both weekly and monthly timeframes, indicating that price volatility is skewed towards the downside and the stock is trading near the lower band, which often signals weakness.

Volume and Trend Confirmation

On-Balance Volume (OBV) readings show no clear trend on either weekly or monthly charts, suggesting that volume is not confirming the price movements decisively. Similarly, Dow Theory analysis indicates no clear trend on weekly or monthly timeframes, adding to the uncertainty surrounding the stock’s directional bias.

Given these mixed signals, investors should exercise caution. The absence of volume confirmation and trend clarity means that any short-term rallies may lack sustainability without stronger buying interest.

Mojo Score and Ratings Update

United Polyfab Gujarat Ltd currently holds a Mojo Score of 36.0, categorised as a Sell rating. This represents an improvement from its previous Strong Sell grade, which was downgraded on 17 Nov 2025. The Market Capitalisation Grade stands at 4, reflecting the company’s micro-cap status within the Garments & Apparels sector. The downgrade in technical trend and the modest improvement in Mojo Grade suggest that while some stabilisation may be underway, the stock remains a risky proposition for investors seeking growth or stability.

Long-Term Performance and Sector Outlook

United Polyfab’s long-term returns have been disappointing. Over five years, the stock has declined by 44.82%, while the Sensex has surged 71.28%. Over three years, the stock’s loss of 70.38% starkly contrasts with the Sensex’s 42.46% gain. This underperformance is indicative of structural challenges within the company or sector-specific headwinds impacting the Garments & Apparels industry.

Despite short-term rallies, the stock remains closer to its 52-week low of ₹14.50 than its high, reflecting persistent investor scepticism. The sector itself faces pressures from global supply chain disruptions, rising input costs, and shifting consumer preferences, which may continue to weigh on United Polyfab’s prospects.

Investor Takeaway

For investors, the current technical landscape suggests caution. The bearish daily moving averages and KST indicators, combined with bearish Bollinger Bands on weekly and monthly charts, point to continued downside risk. The mildly bullish weekly MACD and monthly RSI offer some hope for a recovery, but these are tempered by the lack of volume confirmation and absence of clear trend signals from Dow Theory and OBV.

Given the stock’s low Mojo Score and Sell rating, alongside its poor long-term returns relative to the Sensex, United Polyfab Gujarat Ltd may be best suited for risk-tolerant investors who can withstand volatility and potential further declines. Those seeking more stable or growth-oriented opportunities might consider alternatives within the Garments & Apparels sector or other sectors with stronger technical and fundamental profiles.

Conclusion

United Polyfab Gujarat Ltd’s technical parameters reveal a stock caught between bearish momentum and sporadic bullish signals. The shift from mildly bearish to bearish trend status, combined with mixed MACD and RSI readings, underscores the complexity of its price action. While short-term gains have been recorded, the longer-term outlook remains challenging amid sector headwinds and weak relative performance.

Investors should monitor key technical levels and volume trends closely, as a sustained break above daily moving averages or a confirmed bullish MACD crossover could signal a change in momentum. Until then, the prevailing technical and fundamental indicators counsel prudence.

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