Campus Activewear Ltd Faces Intensified Downtrend Amid Bearish Technical Signals

Technical Trend Shift and Momentum Analysis

Campus Activewear’s technical trend has shifted from mildly bearish to outright bearish, signalling increased downside pressure. The stock closed at ₹254.05 on 12 Jan 2026, down 1.99% from the previous close of ₹259.20. Intraday volatility saw a high of ₹265.75 and a low of ₹254.00, with the current price hovering closer to the 52-week low of ₹215.00 than the high of ₹314.95, underscoring the recent weakness.

The Moving Averages on the daily chart remain bearish, indicating that short-term price action is below key average levels, which typically acts as resistance. This is compounded by the weekly and monthly Bollinger Bands both signalling bearish momentum, suggesting that volatility is skewed towards the downside and the stock price is trading near or below the lower band.

MACD and RSI Signals

The Moving Average Convergence Divergence (MACD) indicator presents a mixed but predominantly negative picture. On the weekly timeframe, the MACD is bearish, reflecting downward momentum and a potential continuation of the downtrend. The monthly MACD remains mildly bearish, indicating that while the longer-term trend is weakening, it has not yet fully capitulated.

Relative Strength Index (RSI) readings on both weekly and monthly charts currently show no clear signal, hovering in neutral zones. This suggests that the stock is neither oversold nor overbought, leaving room for further downside before a potential technical rebound might occur.

Additional Technical Indicators Confirm Bearish Bias

The Know Sure Thing (KST) oscillator, a momentum indicator, is bearish on both weekly and monthly timeframes, reinforcing the negative outlook. Meanwhile, the On-Balance Volume (OBV) indicator is mildly bearish, signalling that volume trends are not supporting any significant price recovery and that selling pressure may be prevailing.

Dow Theory assessments provide a nuanced view: weekly signals are mildly bearish, while monthly signals are mildly bullish. This divergence suggests that while short-term technicals are weak, there may be some underlying longer-term support, though this is insufficient to offset the prevailing negative momentum.

Comparative Performance Versus Sensex

When compared with the broader market, Campus Activewear’s performance has been disappointing. Over the past week, the stock declined by 2.96%, slightly underperforming the Sensex’s 2.55% drop. The one-month return shows a sharper divergence, with Campus Activewear down 6.24% against a modest 1.29% decline in the Sensex.

Year-to-date, the stock has fallen 2.96%, lagging the Sensex’s 1.93% loss. Over the past year, the underperformance is more pronounced, with Campus Activewear down 11.4% while the Sensex gained 7.67%. The three-year return paints an even starker contrast: the stock has lost 34.63% compared to the Sensex’s 37.58% gain, highlighting sustained challenges for the company relative to the broader market.

Mojo Score and Rating Implications

MarketsMOJO’s proprietary Mojo Score for Campus Activewear currently stands at 28.0, reflecting a Strong Sell rating. This is a downgrade from the previous Sell grade, effective from 09 Jan 2026. The downgrade reflects deteriorating technical and fundamental factors, signalling heightened risk for investors.

The Market Cap Grade is rated 3, indicating a relatively modest market capitalisation compared to peers, which may contribute to higher volatility and liquidity concerns. The downgrade to Strong Sell is consistent with the bearish technical indicators and the stock’s underperformance relative to the Sensex and sector peers.

Sector and Industry Context

Campus Activewear operates within the Footwear industry, a sector that has faced headwinds due to changing consumer preferences, supply chain disruptions, and inflationary pressures. The sector’s overall momentum has been mixed, with some companies managing to adapt better than others. Campus Activewear’s technical deterioration suggests it is currently on the weaker end of the spectrum.

Investors should note that the stock’s 52-week high of ₹314.95 is significantly above the current price, indicating a substantial correction over the past year. The 52-week low of ₹215.00 provides a potential support level, but the technical indicators suggest that further downside risk remains before a sustainable recovery can be expected.

Outlook and Investor Considerations

Given the bearish technical signals across multiple indicators and timeframes, investors should exercise caution with Campus Activewear. The absence of strong RSI signals implies that the stock is not yet oversold, and the bearish MACD and KST indicators suggest momentum remains negative.

Short-term traders may find limited opportunities for bullish trades until a clear reversal signal emerges. Long-term investors should weigh the stock’s fundamental prospects against the technical challenges and consider the broader sector dynamics before committing fresh capital.

Summary

Campus Activewear Ltd’s technical parameters have shifted decisively towards bearish territory, with multiple indicators confirming weakening momentum and increased downside risk. The stock’s Strong Sell rating and low Mojo Score reflect these challenges, compounded by underperformance relative to the Sensex and sector peers.

While some longer-term indicators hint at mild bullishness, the prevailing technical landscape advises caution. Investors should monitor key support levels near ₹215.00 and watch for any reversal signals in MACD or RSI before considering new positions. Meanwhile, exploring alternative stocks with stronger technical and fundamental profiles may be prudent.

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