Abbott India Ltd. Technical Momentum Shifts Amid Bearish Signals

Technical Trend Overview

Abbott India’s technical trend has transitioned from mildly bearish to outright bearish, signalling increased downside pressure. The stock closed at ₹28,486.35 on 2 Jan 2026, down 2.01% from the previous close of ₹29,069.85. This decline contrasts with the Sensex’s marginal dip of 0.04% year-to-date, underscoring relative underperformance in the short term.

Over the past month, Abbott India’s stock has fallen 4.47%, significantly lagging the Sensex’s 0.53% decline. The one-year return also paints a challenging picture, with the stock down 4.72% compared to the Sensex’s robust 8.51% gain. However, the longer-term outlook remains positive, with five- and ten-year returns of 80.88% and 382.73% respectively, outpacing the Sensex’s 77.96% and 225.63% over the same periods.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator offers a mixed but predominantly bearish signal. On a weekly basis, the MACD is firmly bearish, indicating that the short-term momentum is weakening and the stock may face further downward pressure. The monthly MACD remains mildly bearish, suggesting that while the longer-term trend is not decisively negative, caution is warranted.

The KST (Know Sure Thing) indicator aligns with this view, showing a weekly bearish stance and a mildly bearish monthly reading. These momentum oscillators collectively point to a deceleration in price gains and a potential continuation of the downtrend in the near term.

RSI and Overbought/Oversold Conditions

Contrasting the bearish momentum indicators, the Relative Strength Index (RSI) on the weekly chart is bullish. This suggests that despite recent price declines, the stock is not yet oversold and may have some underlying strength or potential for a short-term rebound. However, the monthly RSI provides no clear signal, indicating a neutral stance over the longer horizon.

This divergence between RSI and MACD highlights the complexity of Abbott India’s current technical setup, where short-term buying interest may be present but is insufficient to reverse the broader bearish momentum.

Moving Averages and Bollinger Bands

Daily moving averages reinforce the bearish outlook, with the stock trading below key averages, signalling downward pressure. The Bollinger Bands on both weekly and monthly charts are bearish, indicating that price volatility is skewed towards the downside and the stock is likely to remain under pressure within a lower trading range.

Abbott India’s 52-week high stands at ₹35,921.55, while the 52-week low is ₹25,260.20. The current price is closer to the lower end of this range, reflecting the recent weakness and the challenge in regaining upward momentum.

Dow Theory and Volume Analysis

According to Dow Theory, the weekly trend is mildly bullish, suggesting some underlying strength in the broader market context. However, the monthly Dow Theory reading shows no clear trend, reflecting uncertainty over the longer term. This mixed signal aligns with the overall technical ambiguity facing Abbott India.

On-Balance Volume (OBV) indicators show no discernible trend on either weekly or monthly charts, indicating that volume is not confirming price movements. This lack of volume support may limit the sustainability of any short-term rallies and adds to the cautious outlook.

Mojo Score and Rating Update

MarketsMOJO has upgraded Abbott India’s Mojo Grade from Sell to Hold as of 29 Dec 2025, reflecting a reassessment of the stock’s risk-reward profile amid shifting technical parameters. The current Mojo Score stands at 50.0, signalling a neutral stance. The Market Cap Grade remains low at 2, indicating limited market capitalisation strength relative to peers.

This rating upgrade suggests that while the stock is no longer viewed as a clear sell, investors should remain cautious and monitor technical developments closely before committing fresh capital.

Comparative Performance and Sector Context

Abbott India operates within the Pharmaceuticals & Biotechnology sector, which has seen mixed performance amid evolving market dynamics. The stock’s underperformance relative to the Sensex over the past year and month highlights sector-specific challenges, including regulatory pressures and competitive intensity.

However, the company’s long-term returns remain impressive, with a 10-year gain of 382.73% compared to the Sensex’s 225.63%, underscoring its historical resilience and growth potential.

Investor Takeaway

Abbott India Ltd.’s current technical profile is characterised by a predominance of bearish signals across key momentum and trend indicators, tempered by some bullish RSI readings on the weekly timeframe. The stock’s recent price action and moving average positioning suggest that downside risks remain elevated in the near term.

Investors should weigh the stock’s long-term track record and sector fundamentals against the present technical caution. The Hold rating from MarketsMOJO reflects this balanced view, recommending a wait-and-watch approach rather than aggressive accumulation or liquidation.

Given the mixed signals and relative underperformance, portfolio managers may consider diversifying exposure within the pharmaceuticals sector or exploring alternative stocks with stronger momentum profiles and market-cycle advantages.

Price and Volatility Summary

On 2 Jan 2026, Abbott India’s intraday range was ₹28,462.75 to ₹29,024.00, reflecting moderate volatility. The stock remains well below its 52-week high of ₹35,921.55, indicating significant room for recovery if positive catalysts emerge. Conversely, the proximity to the 52-week low of ₹25,260.20 highlights the risk of further declines if bearish momentum persists.

Technical traders will closely monitor the stock’s ability to hold key support levels and any shifts in volume patterns that could presage a trend reversal.

Conclusion

Abbott India Ltd. is navigating a challenging technical environment marked by bearish momentum and mixed indicator signals. While the stock’s long-term fundamentals and historical returns remain robust, the current technical downgrade to a Hold rating advises caution. Investors should remain vigilant for confirmation of trend changes and consider alternative opportunities within the sector to optimise portfolio performance.

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