Arihant Capital Markets Ltd Faces Technical Momentum Shift Amid Mixed Indicators

Technical Trend Overview and Price Movement

The stock closed at ₹90.40 on 30 Dec 2025, down 1.26% from the previous close of ₹91.55. Intraday, it traded between ₹90.00 and ₹92.45, reflecting a modest range of volatility. The 52-week high stands at ₹120.35, while the low is ₹56.31, indicating a significant price range over the past year. The current price level is closer to the lower end of this spectrum, signalling some pressure on the stock.

Technically, the overall trend has shifted from mildly bullish to sideways, indicating a loss of upward momentum and a potential consolidation phase. This shift is corroborated by the daily moving averages which remain mildly bullish, suggesting some underlying support, but the weekly and monthly indicators paint a more cautious picture.

MACD Signals: Divergent Weekly and Monthly Perspectives

The Moving Average Convergence Divergence (MACD) indicator shows a divergence between weekly and monthly timeframes. On a weekly basis, the MACD is mildly bearish, signalling that short-term momentum is weakening. Conversely, the monthly MACD remains bullish, implying that the longer-term trend still favours the upside. This divergence suggests that while short-term traders may face headwinds, longer-term investors could find some comfort in the sustained monthly momentum.

RSI and Bollinger Bands: Neutral to Bearish Indicators

The Relative Strength Index (RSI) on both weekly and monthly charts currently provides no clear signal, hovering in neutral territory. This lack of directional RSI momentum indicates that the stock is neither overbought nor oversold, reinforcing the sideways trend narrative.

Bollinger Bands add further nuance: weekly readings are bearish, reflecting increased volatility and a tendency for prices to test lower bands, while monthly Bollinger Bands are mildly bullish, suggesting some underlying price support over the longer term. This mixed signal underscores the stock’s current indecision phase.

Moving Averages and KST: Conflicting Signals

Daily moving averages remain mildly bullish, indicating that short-term price support is intact. However, the KST (Know Sure Thing) indicator, which is a momentum oscillator, is bearish on a weekly basis and mildly bearish monthly. This suggests that momentum is weakening across intermediate and longer-term horizons, which could limit upside potential in the near term.

Dow Theory and On-Balance Volume (OBV) Analysis

Dow Theory assessments on both weekly and monthly charts are mildly bearish, reinforcing the view that the stock is facing resistance in sustaining an upward trend. Meanwhile, the OBV indicator shows no clear trend on either timeframe, indicating that volume flows are not decisively supporting price moves. This lack of volume confirmation often signals caution for momentum traders.

Comparative Returns: Underperformance Against Sensex Benchmarks

When compared with the broader Sensex index, Arihant Capital Markets Ltd has underperformed significantly over recent periods. The stock’s one-week return is -4.64% versus Sensex’s -1.02%, and over one month, the stock declined by 9.74% compared to Sensex’s 1.18% loss. Year-to-date, the stock is down 8.04%, while the Sensex has gained 8.39%. Over the past year, the stock’s return is -10.63%, contrasting with the Sensex’s 7.62% gain.

However, the longer-term picture is more favourable. Over three years, Arihant Capital has delivered a 43.49% return, outpacing the Sensex’s 38.54%. The five-year and ten-year returns are particularly impressive at 478.01% and 1,437.41% respectively, dwarfing the Sensex’s 77.88% and 224.76% gains. This suggests that while short-term momentum is weak, the stock has historically rewarded patient investors.

Mojo Score and Grade Downgrade

MarketsMOJO’s proprietary scoring system currently assigns Arihant Capital a Mojo Score of 40.0, categorising it as a Sell with a Mojo Grade of Sell as of 29 Dec 2025. This represents a downgrade from the previous Hold rating, reflecting deteriorating technical and fundamental parameters. The Market Cap Grade remains low at 4, consistent with the company’s micro-cap status within the capital markets sector.

Sector Context and Investor Implications

Arihant Capital operates within the capital markets sector, which has experienced volatility amid fluctuating macroeconomic conditions and regulatory changes. The stock’s recent technical deterioration aligns with broader sector pressures, including tightening liquidity and cautious investor sentiment.

For investors, the mixed technical signals suggest a cautious approach. The mildly bullish daily moving averages and monthly MACD indicate potential for recovery, but weekly bearishness across MACD, KST, and Dow Theory, combined with neutral RSI and weak volume trends, counsel restraint. The downgrade to a Sell rating by MarketsMOJO further emphasises the need for prudence.

Long-term investors may find value in the stock’s strong historical returns, but short-term traders should be wary of the sideways momentum and potential for further downside. Monitoring key support levels near ₹90 and resistance around ₹92.50 will be critical in the coming sessions.

Outlook and Conclusion

Arihant Capital Markets Ltd’s technical landscape is currently characterised by a transition from mild bullishness to sideways consolidation, with mixed signals across major indicators. The downgrade in Mojo Grade to Sell reflects this uncertainty and the stock’s underperformance relative to the Sensex in recent months.

While longer-term momentum remains intact, short-term technicals suggest caution. Investors should closely watch the evolution of MACD and KST indicators, as well as volume trends, to gauge the next directional move. Until clearer signals emerge, a conservative stance is advisable, especially given the stock’s micro-cap status and sector volatility.

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