United Polyfab Gujarat Ltd Shows Mixed Technical Signals Amid Price Momentum Shift

Price Momentum and Recent Market Performance

As of 4 February 2026, United Polyfab Gujarat Ltd’s stock price closed at ₹30.36, marking a 2.85% increase from the previous close of ₹29.52. The intraday range saw a low of ₹28.26 and a high of ₹30.50, indicating moderate volatility. Despite this short-term uptick, the stock remains significantly depressed compared to its 52-week high of ₹191.85, underscoring a prolonged downtrend over the past year.

Examining returns relative to the benchmark Sensex reveals a stark contrast. Over the past week, United Polyfab outperformed the Sensex with a 3.51% gain versus the index’s 2.19%. The one-month return is even more pronounced at 8.9%, while the Sensex declined by 2.28%. Year-to-date, the stock has surged 20%, contrasting with the Sensex’s 1.54% fall. However, the longer-term picture remains bleak: a one-year return of -82.29% against the Sensex’s 10.13% gain, and a three-year return of -68.73% versus the Sensex’s 44.10% rise.

Technical Trend Shift: From Bearish to Mildly Bearish

The overall technical trend for United Polyfab has shifted from a strongly bearish stance to a mildly bearish one. This subtle change suggests that while downward pressure persists, some indicators are beginning to hint at potential stabilisation or a nascent recovery phase.

On the daily chart, moving averages remain bearish, signalling that the short-term momentum is still negative. The stock price is trading below key moving averages, which typically acts as resistance to upward price movement. This bearish alignment tempers enthusiasm despite recent gains.

MACD and RSI: Divergent Signals

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD is mildly bullish, indicating that momentum may be shifting in favour of buyers over the medium term. However, the monthly MACD remains bearish, reflecting persistent longer-term selling pressure. This divergence suggests that while short-term momentum is improving, the broader trend remains under strain.

The Relative Strength Index (RSI) also shows contrasting signals. The weekly RSI is neutral, offering no clear directional bias, whereas the monthly RSI is bullish. A bullish monthly RSI indicates that the stock is gaining strength over a longer horizon and may be emerging from oversold conditions. This could be an early sign of a potential trend reversal if supported by other indicators.

Bollinger Bands and KST: Continued Bearish Pressure

Bollinger Bands, which measure volatility and price levels relative to moving averages, remain mildly bearish on both weekly and monthly timeframes. This suggests that the stock price is still under pressure and trading near the lower band, a typical sign of weakness or consolidation.

The Know Sure Thing (KST) indicator, a momentum oscillator, is bearish on both weekly and monthly charts. This confirms that despite some short-term bullish signals, the underlying momentum remains negative, reinforcing caution among traders and investors.

Dow Theory and On-Balance Volume (OBV): Lack of Clear Trend

Both Dow Theory and OBV indicators show no definitive trend on weekly and monthly scales. The absence of a clear trend in Dow Theory implies that the stock is not currently exhibiting the classic higher highs and higher lows pattern associated with sustained uptrends. Similarly, the neutral OBV suggests that volume flow is not decisively favouring buyers or sellers, indicating indecision in the market.

Market Capitalisation and Mojo Score

United Polyfab’s market capitalisation grade stands at 4, reflecting its micro-cap status within the Garments & Apparels sector. The company’s Mojo Score is 41.0, which corresponds to a Sell rating. This is an improvement from the previous Strong Sell grade assigned on 17 November 2025, signalling a slight upgrade in the stock’s technical and fundamental outlook. However, the score remains below the threshold for a Hold or Buy recommendation, indicating that caution is still warranted.

Comparative Sector and Market Context

Within the Garments & Apparels industry, United Polyfab’s recent performance contrasts with broader sector trends and the Sensex benchmark. While the Sensex has delivered positive returns over the past year and longer periods, United Polyfab has struggled with steep declines. This divergence highlights company-specific challenges or market sentiment issues that have yet to be fully resolved.

Investor Takeaway and Outlook

United Polyfab Gujarat Ltd’s technical indicators paint a complex picture. The mild bullish signals from weekly MACD and monthly RSI suggest that the stock may be attempting to stabilise after a prolonged downtrend. However, persistent bearishness in moving averages, Bollinger Bands, and KST caution against premature optimism.

Investors should note the stock’s significant underperformance relative to the Sensex over the past year and longer periods, reflecting structural challenges or market scepticism. The recent upgrade from Strong Sell to Sell by MarketsMOJO indicates some improvement but does not yet signal a clear turnaround.

Given the mixed technical signals and the stock’s micro-cap status, a cautious approach is advisable. Monitoring for confirmation of trend reversal through sustained price moves above key moving averages and improved volume patterns would be prudent before considering accumulation.

Summary of Key Technical Metrics:

• Current Price: ₹30.36 (up 2.85% today)
• 52-Week Range: ₹14.50 – ₹191.85
• MACD: Weekly Mildly Bullish, Monthly Bearish
• RSI: Weekly Neutral, Monthly Bullish
• Bollinger Bands: Mildly Bearish (Weekly & Monthly)
• Moving Averages: Bearish (Daily)
• KST: Bearish (Weekly & Monthly)
• Dow Theory & OBV: No Clear Trend
• Mojo Score: 41.0 (Sell), upgraded from Strong Sell on 17 Nov 2025

In conclusion, United Polyfab Gujarat Ltd remains a stock with significant challenges but also early signs of technical improvement. Investors should weigh these mixed signals carefully within the context of their risk tolerance and investment horizon.

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