Central Bank of India Faces Bearish Momentum Amid Technical Downturn

Technical Trend Shift and Price Action

Central Bank of India (NSE: 721368) closed at ₹36.40 on 2 Feb 2026, down 2.67% from the previous close of ₹37.40. The intraday range saw a low of ₹35.75 and a high of ₹37.32, indicating heightened volatility. The stock remains well below its 52-week high of ₹52.75 and only marginally above its 52-week low of ₹32.81, signalling a lack of strong upward momentum over the past year.

The technical trend has shifted from mildly bearish to outright bearish, reflecting a deterioration in price momentum. Daily moving averages have turned bearish, with the stock trading below key averages, signalling downward pressure. This is corroborated by the monthly Bollinger Bands, which have turned bearish, suggesting increased volatility with a downward bias.

MACD and RSI Analysis

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On the weekly timeframe, the MACD remains mildly bullish, indicating some short-term positive momentum. However, the monthly MACD is bearish, reflecting longer-term weakness. This divergence suggests that while there may be intermittent rallies, the broader trend remains negative.

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral zones. This lack of momentum in RSI implies that the stock is neither overbought nor oversold, but the absence of a bullish RSI signal adds to the cautious outlook.

Additional Technical Indicators

The Know Sure Thing (KST) oscillator is bearish on both weekly and monthly timeframes, reinforcing the negative momentum. Meanwhile, Dow Theory analysis shows no definitive trend on weekly or monthly charts, indicating market indecision. On-Balance Volume (OBV) also shows no clear trend, suggesting that volume is not confirming any price direction decisively.

Overall, the technical indicators collectively point to a bearish momentum shift, with short-term oscillators offering limited relief amid a predominantly negative backdrop.

Comparative Performance and Market Context

Examining Central Bank of India’s returns relative to the Sensex reveals a mixed performance. Over the past week, the stock marginally outperformed the Sensex with a 0.22% gain versus the index’s 1.00% decline. However, over longer periods, the stock has underperformed significantly. The one-month return stands at -1.75% compared to Sensex’s -4.67%, and year-to-date the stock is down 2.73% while the Sensex has fallen 5.28%.

More concerning is the one-year return, where Central Bank of India has declined 28.85%, starkly contrasting with the Sensex’s 5.16% gain. Even over three and five years, the stock’s cumulative returns of 27.05% and 168.83% lag behind the Sensex’s 35.67% and 74.40%, respectively. The ten-year return is deeply negative at -41.57%, while the Sensex has surged 224.57% over the same period.

This relative underperformance highlights structural challenges facing the bank and the public sector banking industry amid evolving market dynamics and competitive pressures.

MarketsMOJO Ratings and Quality Grades

MarketsMOJO has downgraded Central Bank of India’s Mojo Grade from Hold to Sell as of 1 Feb 2026, reflecting the deteriorating technical and fundamental outlook. The current Mojo Score stands at 46.0, signalling weak momentum and limited upside potential. The Market Cap Grade is 2, indicating a relatively low market capitalisation compared to peers, which may impact liquidity and investor interest.

The downgrade aligns with the bearish technical signals and the stock’s underwhelming price action. Investors are advised to exercise caution and consider the broader sectoral headwinds impacting public sector banks.

Outlook and Investor Considerations

Given the prevailing bearish technical trend, investors should be wary of initiating fresh long positions in Central Bank of India at current levels. The daily moving averages and monthly Bollinger Bands suggest sustained downward pressure, while the lack of strong RSI or OBV confirmation limits confidence in a near-term reversal.

Short-term traders may find limited opportunities in the mild weekly MACD bullishness, but the dominant monthly bearishness and KST signals caution against aggressive positioning. The stock’s proximity to its 52-week low further emphasises the risk of continued downside.

Fundamental investors should also weigh the bank’s relative underperformance against the Sensex and sector peers, alongside the MarketsMOJO Sell rating. Portfolio diversification and risk management remain paramount in this environment.

Summary

Central Bank of India’s technical parameters have shifted decisively towards bearishness, with key indicators such as daily moving averages, monthly MACD, Bollinger Bands, and KST all signalling downward momentum. The stock’s recent downgrade to a Sell rating by MarketsMOJO reflects these technical weaknesses and the bank’s relative underperformance against the broader market.

While short-term oscillators like the weekly MACD offer some mild bullish signals, the overall trend remains negative, cautioning investors against aggressive exposure. The stock’s proximity to its 52-week low and lack of volume confirmation further reinforce the bearish outlook.

Investors should consider alternative opportunities within the banking sector or broader market, utilising tools such as SwitchER to optimise portfolio allocation and mitigate risk.

Unlock special upgrade rates for a limited period. Start Saving Now →