Amara Raja Energy & Mobility Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Momentum and Price Action

On 13 February 2026, Amara Raja Energy & Mobility Ltd closed at ₹862.35, down 5.37% from the previous close of ₹911.25. The intraday range was between ₹855.55 and ₹883.20, indicating heightened volatility. The stock remains well below its 52-week high of ₹1,108.70, while still above the 52-week low of ₹805.05. This price action underscores a weakening momentum as the stock struggles to regain upward traction.

The technical trend has shifted from mildly bearish to outright bearish, signalling increased selling pressure. This shift is corroborated by multiple technical indicators across different timeframes, suggesting a sustained downtrend rather than a short-term correction.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly charts. The weekly MACD line continues to trade below its signal line, confirming negative momentum in the near term. Similarly, the monthly MACD supports a bearish outlook, indicating that the stock’s longer-term trend is also under pressure.

Meanwhile, the Relative Strength Index (RSI) presents a mixed picture. On the weekly timeframe, the RSI is neutral with no clear signal, hovering around the mid-50s, which suggests neither overbought nor oversold conditions. However, the monthly RSI is bullish, implying some underlying strength over a longer horizon. This divergence between weekly and monthly RSI readings highlights the complexity of the stock’s momentum, with short-term weakness contrasting with potential longer-term resilience.

Moving Averages and Bollinger Bands

Daily moving averages have turned bearish, with the stock price trading below its 50-day and 200-day moving averages. This crossover is a classic technical warning sign, often interpreted as a signal to reduce exposure or exit positions. The Bollinger Bands on the weekly chart are also bearish, with the price hugging the lower band, indicating sustained downward pressure. On the monthly chart, Bollinger Bands are mildly bearish, suggesting some volatility but no immediate reversal.

Additional Technical Indicators

The Know Sure Thing (KST) indicator is bearish on both weekly and monthly charts, reinforcing the negative momentum. The Dow Theory readings are mildly bullish on a weekly basis but mildly bearish monthly, reflecting short-term optimism overshadowed by longer-term caution.

On-Balance Volume (OBV) analysis shows mild bullishness weekly, suggesting some accumulation by investors, but this is offset by mildly bearish monthly OBV, indicating that selling pressure dominates over the longer term.

Comparative Performance and Market Context

Amara Raja Energy & Mobility Ltd’s recent returns lag behind the broader Sensex index. Over the past week, the stock declined by 1.60% while the Sensex gained 0.43%. The one-month return for the stock is -2.97%, compared to a marginal Sensex decline of -0.24%. Year-to-date, the stock has fallen 5.20%, significantly underperforming the Sensex’s -1.81% return.

Over a one-year horizon, the stock’s performance is notably weak, with a decline of 13.87% against the Sensex’s robust 9.85% gain. Even over three years, while the stock has delivered a positive 42.24% return, it only marginally outperformed the Sensex’s 37.89%. The five-year and ten-year returns reveal a stark contrast: the stock has declined 12.90% over five years, whereas the Sensex surged 62.34%. Over ten years, the stock’s 4.45% gain pales in comparison to the Sensex’s 264.02% rally.

Mojo Score and Rating Revision

MarketsMOJO has downgraded Amara Raja Energy & Mobility Ltd’s rating from Hold to Sell as of 21 November 2025, reflecting the deteriorating technical and fundamental outlook. The company’s Mojo Score stands at 33.0, categorised as Sell, with a Market Cap Grade of 3, indicating moderate market capitalisation but weak momentum and quality metrics.

This downgrade aligns with the technical signals and price action, signalling caution for investors. The downgrade suggests that the stock may face further downside risks unless there is a significant improvement in technical indicators or fundamental catalysts.

Implications for Investors

Given the bearish technical momentum and the recent downgrade, investors should exercise caution with Amara Raja Energy & Mobility Ltd. The stock’s failure to hold key moving averages and the negative MACD readings suggest that further downside is possible in the near term.

However, the mildly bullish monthly RSI and occasional mild bullish signals in OBV and Dow Theory on a weekly basis indicate that some longer-term support may exist. Investors with a higher risk tolerance might consider monitoring the stock for signs of a technical reversal, such as a sustained move above the 50-day moving average or a bullish MACD crossover.

For those seeking more stable or growth-oriented exposure within the Auto Components & Equipments sector, exploring peer comparisons and alternative mid-cap stocks with stronger technical and fundamental profiles may be prudent.

Conclusion

Amara Raja Energy & Mobility Ltd currently faces a challenging technical landscape, with multiple indicators pointing to bearish momentum and a recent downgrade to Sell by MarketsMOJO. The stock’s underperformance relative to the Sensex and its sector peers further compounds concerns. While some longer-term indicators hint at potential resilience, the prevailing trend remains negative, warranting a cautious approach from investors.

Monitoring technical signals closely and considering alternative investment options within the sector could help investors navigate the current volatility and position themselves for better risk-adjusted returns.

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