Arihant Capital Markets Ltd Faces Bearish Momentum Amid Technical Downturn

Technical Trend Shift and Price Action

The stock closed at ₹79.56 on 1 Feb 2026, down from the previous close of ₹81.63, marking a significant intraday drop with a low of ₹79.04 and a high of ₹82.09. This decline comes despite a 1-week return of 4.86%, outperforming the Sensex’s 0.90% gain over the same period. However, the medium- and long-term returns paint a more cautious picture: a 1-month return of -11.75% and a year-to-date (YTD) return of -11.50%, both considerably underperforming the Sensex’s respective -2.84% and -3.46% returns. Over one year, Arihant Capital’s stock has declined 13.00%, contrasting with the Sensex’s 7.18% gain.

Despite the recent weakness, the stock’s longer-term performance remains impressive, with a 3-year return of 57.86%, a 5-year return of 384.24%, and a remarkable 10-year return of 1,750.23%, substantially outpacing the Sensex’s 38.27%, 77.74%, and 230.79% returns respectively. This disparity highlights the stock’s historical growth potential, though current technical signals suggest caution.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart and mildly bearish on the monthly chart. The weekly MACD’s negative crossover confirms downward momentum, signalling that sellers currently dominate price action. The monthly MACD’s mildly bearish stance suggests that while the longer-term trend is weakening, it has not yet fully capitulated. This divergence between weekly and monthly MACD readings indicates a transitional phase where short-term pressures are intensifying.

Relative Strength Index (RSI) and Volatility

The RSI readings on both weekly and monthly timeframes show no clear signal, hovering in neutral zones without reaching oversold or overbought extremes. This lack of directional RSI momentum implies that the stock is neither excessively sold nor bought, but the absence of bullish RSI divergence limits optimism for a near-term reversal.

Bollinger Bands further reinforce the bearish outlook. On the weekly chart, the bands are mildly bearish, with the price trending near the lower band, indicating increased volatility and downward pressure. The monthly Bollinger Bands are outright bearish, suggesting sustained weakness and potential for further downside if the price breaks below key support levels.

Moving Averages and Trend Confirmation

Daily moving averages confirm a bearish trend, with the stock price trading below its short- and medium-term averages. This alignment of moving averages signals that the prevailing momentum is negative, and any rallies may face resistance near these averages. The KST (Know Sure Thing) indicator echoes this sentiment, showing bearish momentum on the weekly chart and mild bearishness on the monthly chart, reinforcing the overall downtrend.

Volume and Market Sentiment

On-Balance Volume (OBV) readings are mildly bearish on both weekly and monthly charts, indicating that volume trends are not supporting price advances. This volume weakness suggests that selling pressure is not yet exhausted, and accumulation by buyers remains limited. Dow Theory assessments align with this view, showing mildly bearish signals on both weekly and monthly timeframes, which points to a lack of confirmation for any sustained upward trend.

Mojo Score and Analyst Ratings

Arihant Capital Markets Ltd currently holds a Mojo Score of 31.0, categorised as a Sell rating by MarketsMOJO. This represents a downgrade from its previous Hold grade as of 12 Jan 2026, reflecting deteriorating technical and fundamental conditions. The company’s Market Cap Grade stands at 4, indicating a relatively modest market capitalisation within the capital markets sector.

The downgrade is consistent with the technical indicators’ bearish signals and the recent price underperformance relative to the broader market. Investors should note that the downgrade reflects both momentum and quality assessments, signalling caution for those considering new positions or holding existing stakes.

Comparative Sector and Market Context

Within the capital markets sector, Arihant Capital’s technical deterioration contrasts with some peers that have maintained or improved momentum. The sector itself has faced headwinds amid volatile market conditions and regulatory uncertainties, which have weighed on trading volumes and brokerage revenues. Against this backdrop, Arihant’s technical weakness may be exacerbated by sector-wide pressures, limiting near-term upside potential.

From a broader market perspective, the Sensex has shown resilience with positive returns over the past week and month, while Arihant Capital has lagged significantly. This divergence highlights the stock’s vulnerability to sector-specific and company-specific risks, underscoring the importance of monitoring technical signals closely.

Key Support and Resistance Levels

The stock’s 52-week high stands at ₹120.35, while the 52-week low is ₹56.31. Currently trading near ₹79.56, the price is closer to the lower end of this range, suggesting limited room for downside but also signalling that recovery will require overcoming significant resistance near the ₹82-83 level, which has acted as a short-term ceiling.

Failure to hold above the recent intraday low of ₹79.04 could open the door to retesting the 52-week low zone, which may attract bargain hunters but also increase volatility. Conversely, a sustained move above daily moving averages and the recent high of ₹82.09 would be necessary to shift momentum back towards neutral or bullish territory.

Investor Takeaway and Outlook

In summary, Arihant Capital Markets Ltd is currently navigating a challenging technical landscape marked by bearish momentum across multiple indicators. The downgrade from Hold to Sell by MarketsMOJO reflects this shift, underscoring the need for investors to exercise caution. While the stock’s long-term performance remains impressive, near-term risks are elevated due to weak price action, negative volume trends, and sector headwinds.

Investors should closely monitor key support levels around ₹79 and the behaviour of moving averages for signs of stabilisation or further deterioration. Given the current technical backdrop, a conservative approach is warranted, with consideration given to alternative opportunities within the capital markets sector or broader market that demonstrate stronger momentum and fundamentals.

Ultimately, the stock’s future trajectory will depend on its ability to regain positive momentum and navigate sector challenges. Until then, the bearish technical signals and recent price declines suggest that downside risks remain prominent.

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