Arihant Capital Markets Ltd Sees Shift in Price Momentum Amid Mixed Technical Signals

Price Movement and Market Context

The stock closed at ₹90.95 on 5 Jan 2026, marking a 1.51% increase from the previous close of ₹89.60. Intraday, it traded between ₹89.64 and ₹91.56, remaining well below its 52-week high of ₹120.35 but comfortably above the 52-week low of ₹56.31. This price range suggests moderate volatility with a slight upward bias in the short term.

Comparing returns with the broader Sensex index reveals a mixed performance. Over the past week, Arihant Capital declined by 0.66%, while Sensex gained 0.85%. The one-month return for the stock was a notable -8.45%, contrasting with Sensex’s modest 0.73% rise. Year-to-date, however, Arihant Capital edged ahead with a 1.17% gain versus Sensex’s 0.64%. Over longer horizons, the stock has outperformed significantly, delivering 41.45% over three years and an impressive 486.02% over five years, dwarfing Sensex’s respective returns of 40.21% and 79.16%. The ten-year return of 1498.42% further underscores the company’s strong historical growth trajectory.

Technical Indicators: Mixed Signals Across Timeframes

The technical landscape for Arihant Capital is complex, with several indicators offering conflicting signals across weekly, monthly, and daily charts. The overall technical trend has shifted from sideways to mildly bullish, signalling a tentative positive momentum.

On the weekly chart, the Moving Average Convergence Divergence (MACD) remains mildly bearish, indicating that momentum has not fully turned positive. Conversely, the monthly MACD is bullish, suggesting longer-term momentum is improving. The Relative Strength Index (RSI) shows no clear signal on either weekly or monthly timeframes, implying the stock is neither overbought nor oversold at present.

Bollinger Bands present a divergence: weekly readings are bearish, hinting at potential price compression or downward pressure, while monthly bands are bullish, reflecting a broader upward trend. The daily moving averages are mildly bullish, supporting the recent price gains and hinting at short-term strength.

Other momentum indicators such as the Know Sure Thing (KST) oscillator are bearish on both weekly and monthly charts, though the weekly On-Balance Volume (OBV) is mildly bullish, indicating some accumulation by investors despite price weakness. Dow Theory assessments remain mildly bearish weekly and show no clear trend monthly, reinforcing the cautious stance.

Mojo Score and Grade Downgrade

Arihant Capital’s current Mojo Score stands at 40.0, categorised as a Sell rating, a downgrade from its previous Hold grade as of 29 Dec 2025. This shift reflects a deterioration in the company’s technical and fundamental outlook as assessed by MarketsMOJO’s proprietary scoring system. The Market Cap Grade remains low at 4, indicating limited market capitalisation strength relative to peers.

The downgrade signals caution for investors, especially given the mixed technical signals and recent underperformance relative to the Sensex over short-term periods. However, the stock’s strong long-term returns and mildly bullish daily moving averages suggest that the sell rating is not an outright rejection but rather a call for prudence amid uncertain momentum.

Technical Trend Analysis and Moving Averages

The transition from a sideways to a mildly bullish trend is primarily driven by the daily moving averages, which have begun to slope upwards, signalling improving short-term price momentum. The stock price currently trades above its short-term moving averages, a positive technical development. However, the weekly and monthly charts present a more cautious picture, with some indicators still bearish or neutral.

This divergence between short-term and longer-term indicators suggests that while the stock may be poised for a near-term rally, sustained upward momentum will require confirmation from weekly and monthly signals, particularly a bullish crossover in MACD and a strengthening RSI.

Investors should also monitor the Bollinger Bands closely. The weekly bearish stance indicates potential volatility or a pullback risk, whereas the monthly bullish bands provide a buffer of support for the stock’s longer-term uptrend.

Volume and Momentum Considerations

The On-Balance Volume (OBV) indicator’s mildly bullish weekly reading suggests that buying interest is gradually increasing, which could support price gains if sustained. However, the bearish KST oscillator on both weekly and monthly charts warns of underlying momentum weakness that could limit upside potential.

Given these mixed momentum signals, traders may want to adopt a cautious approach, looking for confirmation of strength through volume spikes and positive MACD crossovers before committing to larger positions.

Investor Takeaway and Outlook

In summary, Arihant Capital Markets Ltd is navigating a transitional phase in its technical momentum. The shift to a mildly bullish trend on daily charts is encouraging, but the mixed signals from weekly and monthly indicators counsel caution. The downgrade to a Sell Mojo Grade reflects these uncertainties and the stock’s recent relative underperformance.

Long-term investors may find comfort in the company’s robust multi-year returns, which have significantly outpaced the Sensex. However, short-term traders should watch for confirmation of momentum strength through improved MACD readings, RSI stabilisation, and volume support before increasing exposure.

Given the current technical landscape, a balanced approach is advisable, combining selective buying on dips with close monitoring of key technical levels and indicators.

Comparative Performance Highlights

While Arihant Capital has lagged the Sensex over the past month and year, its exceptional five- and ten-year returns highlight its potential as a long-term growth stock within the capital markets sector. This contrast underscores the importance of aligning investment horizons with technical signals and fundamental assessments.

Conclusion

The technical momentum shift in Arihant Capital Markets Ltd presents both opportunities and risks. The mildly bullish daily moving averages and monthly MACD suggest a foundation for potential gains, but bearish weekly indicators and a recent Mojo Grade downgrade temper enthusiasm. Investors should weigh these factors carefully, considering both the stock’s historical outperformance and current technical uncertainties before making investment decisions.

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