Technical Momentum Shifts to Bearish
Recent analysis reveals that Affle 3i Ltd’s technical trend has transitioned from mildly bearish to outright bearish. This shift is underscored by several key technical indicators, including the Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), Bollinger Bands, and moving averages, which collectively suggest increasing downside pressure on the stock.
The MACD on the weekly chart remains bearish, while the monthly MACD is mildly bearish, indicating that momentum is weakening over both short and medium-term horizons. The RSI, however, does not currently provide a clear signal on either weekly or monthly timeframes, suggesting that the stock is neither oversold nor overbought at present. This neutral RSI reading implies that the stock could still experience further directional movement based on other technical factors.
Bollinger Bands present a mixed picture: weekly readings are bearish, signalling price pressure near the lower band, whereas monthly readings are mildly bullish, hinting at some longer-term support. Daily moving averages have turned bearish, reinforcing the short-term negative momentum. The Know Sure Thing (KST) indicator aligns with this view, showing bearish signals on the weekly chart and mildly bearish on the monthly.
Price Action and Volatility
Affle 3i Ltd’s current price stands at ₹1,710.00, down 0.69% from the previous close of ₹1,721.95. The stock’s intraday range has been relatively volatile, with a high of ₹1,733.40 and a low of ₹1,667.30. This volatility reflects investor uncertainty amid the bearish technical backdrop.
Over the past 52 weeks, the stock has traded between ₹1,221.05 and ₹2,186.80, indicating a wide trading range and significant price swings. The current price is closer to the lower end of this range, which may attract value-oriented investors but also signals caution given the prevailing technical weakness.
Volume and Trend Confirmation
On-Balance Volume (OBV) analysis shows no clear trend on the weekly chart and a mildly bearish trend on the monthly chart. This suggests that volume is not strongly confirming the price decline in the short term but is somewhat aligned with the bearish momentum over the longer term. Dow Theory assessments also indicate a mildly bearish stance on both weekly and monthly timeframes, reinforcing the overall negative technical outlook.
Comparative Performance Against Sensex
When compared with the benchmark Sensex, Affle 3i Ltd’s returns have been mixed. Over the past week, the stock declined by 1%, slightly underperforming the Sensex’s 0.75% drop. Over the last month, Affle 3i’s loss of 0.36% was less severe than the Sensex’s 1.98% decline, suggesting some relative resilience in the short term.
Year-to-date, however, the stock has fallen 4.95%, underperforming the Sensex’s 2.32% decline. Over the one-year horizon, Affle 3i has delivered a 7.9% return, marginally lagging the Sensex’s 8.65%. Longer-term returns are more favourable, with three-year gains of 67.15% significantly outpacing the Sensex’s 36.79%, and five-year returns of 137.91% more than doubling the benchmark’s 68.52%. This long-term outperformance highlights the company’s growth potential despite recent technical setbacks.
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Mojo Score and Ratings Update
MarketsMOJO’s latest assessment assigns Affle 3i Ltd a Mojo Score of 43.0, reflecting a Sell rating. This represents a downgrade from the previous Hold rating as of 08 Dec 2025. The downgrade is consistent with the deteriorating technical indicators and the bearish momentum observed across multiple timeframes.
The company’s Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers in the Computers - Software & Consulting sector. This grade suggests moderate liquidity and investor interest but also highlights the need for caution given the current technical signals.
Sector and Industry Context
Affle 3i operates within the Computers - Software & Consulting industry, a sector that has experienced mixed performance amid evolving technology trends and macroeconomic uncertainties. While the broader sector has shown resilience, Affle 3i’s technical indicators suggest it is currently under pressure relative to some peers.
Investors should weigh the company’s long-term growth prospects against the near-term technical challenges. The bearish signals from MACD, moving averages, and Bollinger Bands on weekly and daily charts warrant a cautious approach, especially for short-term traders.
Outlook and Investor Considerations
Given the current technical landscape, investors should monitor Affle 3i Ltd closely for signs of trend reversal or further deterioration. The absence of clear RSI signals suggests that the stock is not yet oversold, leaving room for additional downside. The bearish daily moving averages and weekly MACD reinforce this cautionary stance.
Long-term investors may find value in the company’s strong historical returns over three and five years, but should remain vigilant to technical developments that could impact near-term price action. Volume trends and Dow Theory assessments further support a cautious outlook, with no strong confirmation of a bullish reversal at this stage.
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Summary
Affle 3i Ltd’s recent technical parameter changes highlight a shift towards bearish momentum, with multiple indicators signalling caution. The downgrade in Mojo Grade to Sell aligns with these signals, reflecting increased downside risk in the near term. While the company’s long-term returns remain impressive, the current technical environment suggests investors should adopt a measured approach, balancing growth potential with the risk of further price declines.
Monitoring key technical indicators such as MACD, moving averages, and volume trends will be essential for assessing future price direction. Investors seeking exposure to the Computers - Software & Consulting sector may wish to consider alternative stocks with more favourable technical profiles as suggested by portfolio optimisation tools.
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