Why is Shivalik Rasayan falling/rising?

Extended Underperformance Against Benchmarks

Shivalik Rasayan’s recent price action is part of a broader trend of significant underperformance when compared to the Sensex. Over the past week, the stock has declined by 1.30%, more than double the Sensex’s modest fall of 0.59%. The divergence becomes more pronounced over longer periods, with the stock falling 14.55% in the last month while the Sensex gained 1.34%. Year-to-date, Shivalik Rasayan has plummeted by 48.36%, starkly contrasting with the Sensex’s 8.92% rise. This persistent weakness extends to the one-year, three-year, and five-year horizons, where the stock has consistently lagged the benchmark by wide margins, highlighting structural challenges or market concerns specific to the company or its sector.

Technical Indicators Signal Bearish Momentum

The stock’s technical profile further underscores the bearish sentiment. On 03-Dec, Shivalik Rasayan hit a new 52-week low of ₹386, signalling fresh downside pressure. It has been on a losing streak for three consecutive days, accumulating a 2.12% decline during this period. Moreover, the share price is trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — a classic indication of sustained negative momentum. Such positioning often deters short-term traders and technical investors from initiating fresh positions, thereby exacerbating selling pressure.

Declining Investor Participation Dampens Price Support

Investor engagement appears to be waning, as evidenced by a sharp drop in delivery volumes. On 02-Dec, the delivery volume stood at 4.13 thousand shares, representing a steep 53.86% decline compared to the five-day average delivery volume. This reduction in investor participation suggests diminished conviction among shareholders and potential sellers outweighing buyers. Lower delivery volumes often indicate that fewer investors are willing to hold the stock, which can amplify price declines, especially in a stock already exhibiting weak technical signals.

Liquidity Remains Adequate Despite Weakness

Despite the negative price action and falling volumes, Shivalik Rasayan maintains sufficient liquidity for trading, with the stock’s average traded value supporting trade sizes of approximately ₹0.01 crore based on 2% of the five-day average. This liquidity level ensures that the stock remains accessible to investors and traders, although the prevailing sentiment and technical factors are currently limiting upward price movement.

Conclusion: Persistent Downtrend Reflects Market Caution

The decline in Shivalik Rasayan’s share price on 03-Dec is a continuation of a prolonged downtrend characterised by underperformance relative to the broader market and sector indices. The stock’s breach of a new 52-week low, combined with its position below all major moving averages, signals entrenched bearish momentum. Additionally, the marked reduction in delivery volumes points to weakening investor interest, which further undermines price support. While liquidity remains adequate, these factors collectively suggest that the stock is facing significant headwinds, and investors should approach with caution until there is a clear reversal in technical and participation indicators.

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