Arihant Capital Markets Ltd Sees Mixed Technical Signals Amid Mildly Bullish Momentum

Technical Trend Shift and Price Movement

After a prolonged period of sideways movement, Arihant Capital Markets Ltd’s technical trend has recently edged into mildly bullish territory. The stock closed at ₹90.10 on 1 January 2026, a marginal decline of 0.06% from the previous close of ₹90.15. The intraday range saw a high of ₹91.00 and a low of ₹89.30, indicating relatively tight price fluctuations. The 52-week high stands at ₹120.35, while the 52-week low is ₹56.31, reflecting significant volatility over the past year.

This mild bullish momentum is supported by daily moving averages, which have improved to a mildly bullish signal, suggesting that short-term price averages are beginning to trend upwards. However, the weekly and monthly technical indicators provide a more complex outlook.

Oscillator and Indicator Analysis

The Moving Average Convergence Divergence (MACD) indicator shows a divergence in sentiment across timeframes. On a weekly basis, the MACD remains mildly bearish, signalling that momentum has not fully shifted to the upside. Conversely, the monthly MACD is bullish, indicating that longer-term momentum is improving. This disparity suggests that while the broader trend may be positive, short-term momentum is still under pressure.

The Relative Strength Index (RSI) offers no clear signal on either the weekly or monthly charts, hovering in neutral territory. This lack of directional RSI momentum implies that the stock is neither overbought nor oversold, leaving room for either a continuation of the current trend or a reversal depending on forthcoming market catalysts.

Bollinger Bands add further nuance: weekly readings are bearish, reflecting recent price pressure and potential volatility expansion to the downside, whereas monthly Bollinger Bands are mildly bullish, consistent with the longer-term MACD signal. This divergence highlights the importance of monitoring price action closely in the coming weeks.

Volume and Trend Confirmation Indicators

On-Balance Volume (OBV) is mildly bullish on a weekly basis, suggesting that buying volume is slightly outweighing selling pressure in the short term. However, the monthly OBV shows no clear trend, indicating that volume support for the longer-term trend remains inconclusive.

The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, is bearish on both weekly and monthly timeframes, signalling that momentum may be weakening despite the recent mild bullish price trend. Similarly, Dow Theory assessments remain mildly bearish on both weekly and monthly charts, reinforcing the cautious stance.

Comparative Performance and Market Context

From a returns perspective, Arihant Capital Markets Ltd has underperformed the broader Sensex index over recent periods. The stock posted a 1-week return of -2.59% compared to Sensex’s -0.22%, and a 1-month return of -9.31% versus Sensex’s -0.49%. Year-to-date and 1-year returns are identical at -8.34%, contrasting sharply with Sensex’s positive 9.06% gain over the same timeframe.

However, the longer-term performance remains impressive. Over three years, Arihant Capital Markets Ltd has delivered a 38.83% return, closely tracking the Sensex’s 40.07%. More notably, the stock has outperformed significantly over five and ten years, with returns of 480.17% and 1396.68% respectively, compared to Sensex’s 78.47% and 226.30%. This highlights the company’s strong growth trajectory over the long term despite recent volatility.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Arihant Capital Markets Ltd a Mojo Score of 40.0, reflecting a cautious outlook. The Mojo Grade has recently been downgraded from Hold to Sell as of 29 December 2025, signalling a deterioration in the stock’s technical and fundamental outlook. The Market Cap Grade stands at 4, indicating a relatively modest market capitalisation within the capital markets sector.

This downgrade aligns with the mixed technical signals observed, particularly the bearish weekly MACD and KST indicators, as well as the bearish Bollinger Bands on the weekly timeframe. Investors should weigh these signals carefully against the stock’s long-term growth potential and recent price momentum.

Investor Implications and Outlook

For investors, the current mildly bullish technical trend suggests some potential for price appreciation in the near term, supported by daily moving averages and monthly MACD signals. However, the presence of bearish weekly indicators and neutral RSI readings counsel caution. The stock’s recent underperformance relative to the Sensex and the downgrade to a Sell rating by MarketsMOJO further underline the need for careful risk management.

Given the mixed signals, investors may consider waiting for clearer confirmation of trend direction, such as a sustained breakout above recent resistance levels or improvement in weekly momentum indicators. Alternatively, those with a higher risk tolerance might view the current price levels as an opportunity to accumulate shares, banking on the company’s strong long-term growth record.

Monitoring volume trends and the evolution of key oscillators like MACD and KST in the coming weeks will be critical to assessing whether the mild bullish momentum can be sustained or if the stock will revert to a bearish phase.

Summary

Arihant Capital Markets Ltd is navigating a complex technical landscape as it shifts from a sideways trend to mild bullishness. While daily moving averages and monthly MACD suggest improving momentum, weekly indicators such as MACD, KST, and Bollinger Bands remain bearish or neutral. The stock’s recent price action and relative underperformance versus the Sensex, combined with a downgrade to a Sell rating, advise prudence. Long-term investors may find value in the stock’s impressive multi-year returns, but short-term traders should await clearer signals before committing.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →