MTAR Technologies shares slipped into the 5% lower circuit for the third consecutive trading day on Monday, extending a losing streak that began last week. The dip has pushed the stock below its recent support levels, raising concerns among investors.
Since entering the lower circuit, the share price has fallen roughly 15% over the past three sessions. In the last month, MTAR has declined 31.41%, reflecting a sharp correction from earlier gains.
Analysts say the correction has made the stock’s valuation more attractive, but they caution that traders should wait for clear technical signals before adding positions. They recommend observing trend lines and moving averages for confirmation.
Anand James, Chief Market Strategist at Geojit Investments, noted that the stock formed a clear topping pattern last month, so there is no urgency to buy just for the price advantage. He added that a reversal would need a 61% retracement of the March‑June move to 5,440 or a collapse toward the 4,500 region, and a direct rise above 6,200 could trigger interest.
Prasenjit Paul, a fund manager at 129 Wealth and research analyst at Paul Asset, highlighted that after a sharp 30% correction, the RSI has slipped close to the oversold zone. Despite recent weakness, he said the company’s fundamentals remain solid, backed by a healthy order book in defence and nuclear sectors and a FY27 revenue growth guidance of 50‑80%. He advised long‑term investors to avoid a falling‑knife approach and instead accumulate on declines, provided the stock stays above its 200‑day moving average around 4,750‑4,800.
MTAR Technologies has been a multibagger, delivering an 128% return over the last six months, which has attracted many investors.
The recent decline comes amid sustained selling pressure on AI‑linked stocks across global equity markets, including the US, South Korea, and Taiwan, which has dampened investor sentiment.
Earlier in the year, the stock rallied as investors linked MTAR to the AI infrastructure supply chain, raising expectations of higher valuations and stronger order inflows.
The company’s partnership with Bloom Energy, a supplier of fuel cells for AI data centres, strengthens its position. Bloom Energy’s fuel cells are slated for deployment in a proposed 1.8 GW data centre project in Cheyenne, Wyoming.
Overall, analysts remain cautious, urging investors to wait for technical confirmation before taking fresh exposure while noting the company’s robust fundamentals and growth prospects.