AB Cotspin India Ltd Faces Technical Momentum Shift Amid Bearish Signals

Technical Momentum and Price Action Overview

The stock closed at ₹414.00 on 20 Jan 2026, down 0.87% from the previous close of ₹417.65. Intraday price movement showed a high of ₹424.00 and a low of ₹409.00, indicating some volatility within the trading session. Despite this, the stock remains above its 52-week low of ₹379.65 but well below its 52-week high of ₹508.00, suggesting a consolidation phase after a period of strong gains.

Over the short term, AB Cotspin has outperformed the Sensex, with a 1-week return of 1.21% compared to the Sensex’s decline of 0.75%, and a 1-month return of 1.73% versus the Sensex’s 1.98% drop. However, year-to-date performance shows a slight negative return of -0.6%, while the Sensex is down 2.32%, indicating relative resilience but also some recent pressure on the stock price.

MACD and RSI Signal Deterioration

The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, has shown signs of weakening on the weekly chart, although monthly MACD data remains inconclusive. The weekly MACD histogram has contracted, signalling a loss of upward momentum and hinting at a potential bearish crossover if the trend continues. This suggests that the recent bullish momentum is fading, and sellers may be gaining control in the near term.

Complementing this, the Relative Strength Index (RSI) on the weekly timeframe has turned bearish, indicating that the stock is losing strength and may be entering an oversold phase if the downward pressure persists. The monthly RSI remains neutral, reflecting a longer-term balance between buying and selling forces. The weekly RSI’s bearish stance is a warning sign for traders relying on momentum to gauge entry and exit points.

Moving Averages and Trend Assessment

Daily moving averages have also shifted, with short-term averages beginning to flatten or slope downward, signalling a loss of upward price momentum. This aligns with the technical trend change from mildly bullish to mildly bearish. The lack of a clear trend in the Dow Theory analysis on both weekly and monthly charts further emphasises the current uncertainty in price direction.

Other indicators such as Bollinger Bands and the Know Sure Thing (KST) oscillator have not provided definitive signals recently, with weekly and monthly readings remaining inconclusive. On-Balance Volume (OBV) also shows no clear trend, suggesting that volume is not strongly confirming either buying or selling pressure at this stage.

Mojo Score and Market Capitalisation Insights

AB Cotspin India Ltd currently holds a Mojo Score of 41.0, categorised as a Sell rating, a downgrade from its previous Hold grade as of 19 Jan 2026. This reflects a deterioration in the stock’s overall quality and momentum metrics as assessed by MarketsMOJO’s proprietary scoring system. The Market Cap Grade stands at 4, indicating a mid-tier market capitalisation relative to peers in the Garments & Apparels sector.

The downgrade in Mojo Grade signals caution for investors, as the stock’s technical and fundamental outlook has weakened. This is consistent with the observed technical trend shift and the bearish weekly RSI, suggesting that the stock may face further headwinds in the near term.

Comparative Performance and Sector Context

While AB Cotspin has shown resilience relative to the broader Sensex index in the short term, its longer-term returns lag behind the benchmark. The Sensex has delivered an 8.65% return over the past year and a robust 240.06% over ten years, whereas AB Cotspin’s longer-term returns are not available for direct comparison but are implied to be less impressive given the current technical and rating downgrades.

Within the Garments & Apparels sector, the stock’s technical deterioration contrasts with some peers that continue to exhibit stronger momentum and higher Mojo Scores. This divergence highlights the importance of monitoring sector dynamics and individual stock technicals closely.

Investor Takeaway and Outlook

Investors in AB Cotspin India Ltd should approach the stock with caution given the recent technical deterioration and downgrade in Mojo Grade. The mildly bearish shift in momentum indicators such as the weekly MACD and RSI suggests that the stock may face downward pressure in the near term. The absence of a clear trend in volume and other oscillators further emphasises the current uncertainty.

However, the stock’s relative outperformance against the Sensex in the short term and its position above the 52-week low provide some support levels to watch. Traders may consider waiting for confirmation of a trend reversal or stronger technical signals before increasing exposure.

Longer-term investors should also consider the company’s fundamentals and sector outlook alongside technical signals. Given the downgrade to a Sell rating and the current technical setup, a cautious stance or portfolio rebalancing may be prudent until clearer momentum emerges.

Summary of Key Technical Indicators

• Technical trend changed from mildly bullish to mildly bearish


• Weekly MACD weakening, potential bearish crossover looming


• Weekly RSI bearish, indicating loss of momentum


• Daily moving averages flattening or turning downward


• Dow Theory and OBV show no clear trend, signalling indecision


• Mojo Score downgraded to 41.0 (Sell) from Hold

Overall, AB Cotspin India Ltd’s technical profile suggests a cautious approach as momentum indicators signal a potential shift towards bearishness. Investors should monitor key support levels near ₹410 and watch for any reversal signals in the MACD and RSI before considering fresh positions.

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