Technical Trend Overview and Price Movement
As of 24 Feb 2026, Asian Paints is trading at ₹2,428.75, marginally up by 0.02% from the previous close of ₹2,428.35. The stock’s intraday range has been relatively contained, with a low of ₹2,411.15 and a high of ₹2,446.40. Despite this narrow band, the broader technical trend has shifted from mildly bearish to sideways, signalling a pause in directional momentum.
The 52-week price range remains wide, with a high of ₹2,985.50 and a low of ₹2,125.00, reflecting significant volatility over the past year. This range provides context for the current consolidation phase, as the stock appears to be stabilising after a period of downward pressure.
MACD Signals: Divergent Weekly and Monthly Perspectives
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains bearish, indicating that short-term momentum is still under pressure. However, the monthly MACD has turned mildly bullish, suggesting that longer-term momentum may be improving. This divergence highlights a transitional phase where short-term bears have not yet fully relinquished control, but the medium-term outlook is cautiously optimistic.
RSI and Bollinger Bands: Neutral to Mildly Bearish Sentiment
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in a neutral zone. This lack of momentum extremes implies that the stock is neither overbought nor oversold, consistent with the sideways trend.
Bollinger Bands, which measure volatility and price levels relative to moving averages, are mildly bearish on both weekly and monthly timeframes. This suggests that price volatility remains subdued but with a slight downward bias, reinforcing the notion of consolidation rather than a clear directional breakout.
Moving Averages and KST: Signs of Mild Bullishness Amidst Bearish Pressure
Daily moving averages have turned mildly bullish, indicating that recent price action has been supportive of a potential upward move in the short term. This is a positive sign for investors looking for early indications of trend reversal.
Conversely, the Know Sure Thing (KST) indicator shows a mildly bearish stance on the weekly chart but shifts to mildly bullish on the monthly chart. This mixed signal aligns with the MACD’s divergent readings and further emphasises the transitional nature of the current trend.
Additional Technical Indicators: Dow Theory and OBV
Dow Theory analysis reveals no clear trend on the weekly timeframe, while the monthly perspective remains mildly bearish. This suggests that the broader market forces influencing Asian Paints are still somewhat cautious.
On-Balance Volume (OBV), a volume-based indicator, shows no trend on the weekly chart and a mildly bearish trend monthly. This indicates that volume flows have not decisively supported a strong directional move, consistent with the sideways price action.
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Comparative Performance: Asian Paints vs. Sensex
Examining returns relative to the benchmark Sensex reveals a mixed performance for Asian Paints. Over the past week, the stock outperformed the Sensex with a 1.34% gain compared to the benchmark’s 0.02%. However, over the last month and year-to-date periods, Asian Paints has underperformed significantly, declining by 10.12% and 12.31% respectively, while the Sensex gained 2.15% and lost 2.26% in the same periods.
Longer-term returns also show underperformance. Over one year, Asian Paints returned 7.60% against the Sensex’s 10.60%. The three- and five-year returns are notably weaker, with Asian Paints down 10.26% and up only 2.33%, while the Sensex surged 39.74% and 67.42% respectively. Even over a decade, Asian Paints’ 177.73% gain trails the Sensex’s 255.80%.
This relative underperformance, combined with the technical indicators, supports the current hold rating and suggests investors should monitor momentum shifts closely before committing further capital.
Mojo Score and Rating Update
MarketsMOJO has recently downgraded Asian Paints from a Buy to a Hold rating as of 16 Jan 2026, reflecting the evolving technical and fundamental outlook. The current Mojo Score stands at 57.0, indicating a moderate level of confidence in the stock’s near-term prospects. The Market Cap Grade remains at 1, signalling a large-cap status but with limited upside momentum at present.
The downgrade aligns with the technical trend shift from mildly bearish to sideways and the mixed signals from key indicators. Investors should weigh these factors carefully, especially given the stock’s recent underperformance relative to the broader market.
Outlook and Investor Considerations
Asian Paints is currently navigating a phase of technical consolidation, with no clear directional bias emerging from the key momentum indicators. The mildly bullish signals on daily moving averages and monthly MACD offer some optimism, but weekly bearishness and neutral RSI readings temper enthusiasm.
Given the stock’s recent price action and relative underperformance, investors may consider maintaining a cautious stance. The sideways trend suggests that a breakout or breakdown could be imminent, but confirmation from volume and momentum indicators will be crucial before taking decisive positions.
Long-term investors should also consider the broader sector dynamics and company fundamentals alongside technical signals to form a comprehensive view.
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Summary
Asian Paints Ltd. is currently in a technical holding pattern, with momentum indicators signalling a shift from bearishness to sideways consolidation. The mixed readings from MACD, RSI, moving averages, and other technical tools suggest investors should adopt a measured approach. While short-term signals show mild bullishness, the absence of strong volume support and the stock’s relative underperformance versus the Sensex warrant caution.
MarketsMOJO’s downgrade to a Hold rating and a Mojo Score of 57.0 further reinforce the need for vigilance. Investors should monitor upcoming price action closely for signs of a breakout or renewed momentum before increasing exposure.
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