Technical Trend Overview and Price Momentum
On 10 Feb 2026, Andhra Paper Ltd closed at ₹68.13, up from the previous close of ₹65.25, marking a daily gain of 4.41%. The stock’s intraday range was between ₹65.80 and ₹69.28, indicating increased volatility. However, the 52-week high remains at ₹98.00, while the 52-week low is ₹58.65, placing the current price closer to the lower end of its annual range. This suggests that while short-term momentum has improved, the stock is still far from recovering its previous highs.
The technical trend has shifted from bearish to mildly bearish, signalling a tentative improvement but still reflecting caution among investors. This nuanced change is supported by a mixed set of technical indicators that paint a complex picture of Andhra Paper’s near-term prospects.
MACD and RSI: Divergent Signals
The Moving Average Convergence Divergence (MACD) indicator presents a split view. On the weekly chart, the MACD is mildly bullish, suggesting some upward momentum building over the short term. Conversely, the monthly MACD remains bearish, indicating that the longer-term trend has yet to confirm a sustained recovery. This divergence highlights the stock’s current position in a transitional phase where short-term gains may not yet translate into a durable uptrend.
Relative Strength Index (RSI) readings on both weekly and monthly timeframes show no clear signal, hovering in neutral zones. This lack of momentum confirmation from RSI suggests that the stock is neither overbought nor oversold, reinforcing the idea of a consolidation phase rather than a decisive directional move.
Moving Averages and Bollinger Bands: Mildly Bearish Bias
Daily moving averages indicate a mildly bearish stance, with the stock price hovering near or slightly below key averages. This suggests that while there is some buying interest, it is not yet strong enough to push the stock decisively above resistance levels. Bollinger Bands on both weekly and monthly charts also reflect a mildly bearish outlook, with the price trading near the lower bands, signalling potential downside risk but also the possibility of a rebound if volatility contracts.
Other Technical Indicators: KST, Dow Theory, and OBV
The Know Sure Thing (KST) oscillator remains bearish on both weekly and monthly charts, reinforcing the cautionary tone from longer-term momentum indicators. Dow Theory analysis offers a mixed perspective: mildly bullish on the weekly timeframe but mildly bearish monthly, echoing the broader theme of short-term optimism tempered by longer-term uncertainty.
On-Balance Volume (OBV) shows no clear trend on either weekly or monthly charts, indicating that volume flows have not decisively supported either buying or selling pressure. This volume neutrality further complicates the outlook, as price movements are not strongly confirmed by trading activity.
Comparative Performance: Andhra Paper vs Sensex
Examining Andhra Paper’s returns relative to the Sensex reveals a challenging performance over longer horizons. The stock has outperformed the Sensex over the past week and month, with returns of 6.20% and 6.30% respectively, compared to Sensex gains of 2.94% and 0.59%. Year-to-date, Andhra Paper has gained 1.44%, while the Sensex declined by 1.36%, indicating some recent relative strength.
However, over the one-year and three-year periods, Andhra Paper has underperformed significantly, with losses of 21.29% and 24.13% respectively, while the Sensex posted gains of 7.97% and 38.25%. Even over five and ten years, the stock’s cumulative returns of 53.52% and 31.80% lag behind the Sensex’s 63.78% and 249.97%, underscoring persistent challenges in the company’s growth trajectory and market positioning.
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MarketsMOJO Ratings and Quality Grades
MarketsMOJO currently assigns Andhra Paper a Mojo Score of 23.0, categorising it as a Strong Sell. This represents a downgrade from the previous Sell rating issued on 07 Nov 2025, reflecting deteriorating fundamentals and technical outlook. The Market Cap Grade stands at 4, indicating a micro-cap status with associated liquidity and volatility risks.
The downgrade is consistent with the mixed technical signals and the company’s underwhelming long-term performance relative to the broader market. Investors should note that the Strong Sell rating is a cautionary signal, suggesting that downside risks remain significant despite recent short-term price gains.
Sector Context and Industry Positioning
Operating within the Paper, Forest & Jute Products sector, Andhra Paper faces sector-specific headwinds including raw material cost pressures, fluctuating demand, and competitive challenges. The sector itself has shown varied performance, with some peers demonstrating stronger technical and fundamental metrics. Andhra Paper’s current technical indicators and ratings place it at a relative disadvantage within this competitive landscape.
Given the sector’s cyclical nature, the mildly bearish technical trend and mixed momentum indicators suggest that the stock may continue to experience volatility and sideways movement until clearer directional cues emerge.
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Investor Takeaway and Outlook
Andhra Paper Ltd’s recent price momentum and technical indicator shifts suggest a tentative improvement from a strongly bearish position to a mildly bearish trend. The weekly MACD’s mildly bullish signal offers some hope for short-term gains, but the monthly MACD and KST oscillators remain bearish, signalling that longer-term recovery is uncertain.
The absence of clear RSI signals and neutral OBV trends further complicate the outlook, indicating that volume and momentum are not yet aligned to support a sustained rally. The stock’s relative underperformance against the Sensex over one and three years, combined with a Strong Sell Mojo Grade, advises caution for investors considering new positions.
For those currently holding Andhra Paper shares, monitoring key technical levels and indicator confirmations will be crucial. A break above daily moving averages and a shift in monthly MACD to bullish territory could signal a more durable uptrend. Conversely, failure to sustain recent gains may lead to renewed selling pressure, especially given the stock’s proximity to its 52-week low.
In summary, Andhra Paper Ltd remains a high-risk proposition with mixed technical signals and a challenging fundamental backdrop. Investors should weigh these factors carefully and consider alternative opportunities within the sector or broader market that demonstrate stronger technical and fundamental profiles.
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