Central Bank of India Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Evolution and Price Movement

The stock price of Central Bank of India closed at ₹37.05 on 31 Dec 2025, marking a 1.31% increase from the previous close of ₹36.57. Intraday, the price fluctuated between ₹36.25 and ₹37.25, indicating moderate volatility within a narrow range. The 52-week high remains at ₹56.40, while the 52-week low is ₹32.81, highlighting a significant retracement from its peak over the past year.

The recent shift from a sideways to a mildly bullish trend suggests that buyers are gradually gaining control, supported by daily moving averages that have turned mildly bullish. This is a positive development after a prolonged period of consolidation, but the broader technical landscape remains nuanced.

MACD and Momentum Indicators Paint a Mixed Picture

The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly timeframes, signalling that the longer-term momentum is still under pressure. This bearish MACD suggests that despite short-term gains, the stock has yet to establish a sustained upward momentum that would confirm a robust bullish phase.

Conversely, the Know Sure Thing (KST) indicator offers a split view: it is bullish on the weekly chart but bearish on the monthly chart. This divergence indicates that while short-term momentum is improving, the longer-term trend remains subdued, cautioning investors against over-optimism.

RSI and Bollinger Bands: Neutral to Bearish Signals

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This suggests that the stock is neither overbought nor oversold, leaving room for either further upside or downside depending on market catalysts.

Bollinger Bands add to the cautious tone, with weekly readings mildly bearish and monthly readings outright bearish. The stock price is currently near the lower band on the weekly scale, which could imply a potential rebound if buying interest intensifies. However, the monthly bearishness indicates that volatility remains elevated and downside risks persist over a longer horizon.

Moving Averages and Volume Trends

Daily moving averages have turned mildly bullish, reflecting recent price gains and suggesting a possible short-term uptrend. This is supported by the On-Balance Volume (OBV) indicator, which is mildly bullish on the weekly timeframe, signalling that volume is confirming the price advances to some extent. However, the monthly OBV shows no clear trend, indicating that volume support for a sustained rally is not yet firmly established.

Dow Theory and Broader Market Context

According to Dow Theory, both weekly and monthly charts show mildly bullish signals, which aligns with the recent technical trend shift. This suggests that the stock may be entering a phase of gradual recovery, although the strength of this recovery remains moderate.

Comparing Central Bank of India’s returns with the Sensex reveals a challenging backdrop. Year-to-date, the stock has declined by 30.47%, significantly underperforming the Sensex’s 8.36% gain. Over one year, the stock is down 29.44%, while the Sensex rose 8.21%. Even over three years, the stock’s 15.24% return lags behind the Sensex’s 39.17%. However, the five-year return of 169.06% notably outpaces the Sensex’s 77.34%, reflecting strong historical performance despite recent setbacks. The 10-year return remains negative at -47.60%, contrasting sharply with the Sensex’s 226.18% gain, underscoring the stock’s volatility and sector-specific challenges.

Mojo Score Upgrade and Rating Implications

MarketsMOJO has upgraded Central Bank of India’s Mojo Grade from Sell to Hold as of 15 Dec 2025, reflecting an improved technical outlook and stabilising fundamentals. The current Mojo Score stands at 67.0, indicating moderate confidence in the stock’s near-term prospects. The Market Cap Grade remains low at 2, consistent with the company’s mid-cap status within the public sector banking space.

This upgrade signals a cautious optimism among analysts, suggesting that while the stock is not yet a strong buy, it has moved out of the sell territory due to improving momentum and technical parameters.

Sector and Industry Context

As a public sector bank, Central Bank of India operates in a highly regulated and competitive environment. The sector has faced headwinds from asset quality concerns and margin pressures, which have weighed on valuations and investor sentiment. The mixed technical signals reflect these underlying challenges, with short-term momentum improving but longer-term indicators still signalling caution.

Investors should weigh these factors carefully, considering the stock’s recent price action alongside broader macroeconomic and sectoral trends.

Investor Takeaway and Outlook

Central Bank of India’s recent technical momentum shift to mildly bullish territory offers a cautiously optimistic outlook for investors. The daily moving averages and weekly KST indicator support a short-term recovery narrative, while the Dow Theory mildly bullish signals on weekly and monthly charts add further confirmation.

However, the persistent bearish MACD on longer timeframes and bearish Bollinger Bands on the monthly scale highlight ongoing risks. The neutral RSI readings suggest the stock is not yet overextended, leaving room for either further gains or renewed weakness depending on market developments.

Given the stock’s significant underperformance relative to the Sensex over the past year and year-to-date, investors should remain vigilant and consider the broader macroeconomic environment, sector-specific challenges, and company fundamentals before committing fresh capital.

In summary, Central Bank of India is showing early signs of technical recovery but remains in a delicate position where momentum gains need to be sustained and confirmed by improving volume and broader market support.

Summary of Key Technical Indicators:

• MACD: Weekly and Monthly Bearish


• RSI: Neutral on Weekly and Monthly


• Bollinger Bands: Mildly Bearish Weekly, Bearish Monthly


• Moving Averages: Daily Mildly Bullish


• KST: Weekly Bullish, Monthly Bearish


• Dow Theory: Mildly Bullish Weekly and Monthly


• OBV: Mildly Bullish Weekly, No Trend Monthly

Price and Return Metrics:

• Current Price: ₹37.05


• Day Change: +1.31%


• 52-Week High/Low: ₹56.40 / ₹32.81


• 1 Week Return: -0.19% vs Sensex -0.99%


• 1 Month Return: -3.49% vs Sensex -1.20%


• Year-to-Date Return: -30.47% vs Sensex +8.36%


• 1 Year Return: -29.44% vs Sensex +8.21%


• 3 Year Return: +15.24% vs Sensex +39.17%


• 5 Year Return: +169.06% vs Sensex +77.34%


• 10 Year Return: -47.60% vs Sensex +226.18%

Investors should monitor upcoming quarterly results and macroeconomic developments closely, as these will be critical in determining whether the current mild bullish momentum can evolve into a sustained uptrend.

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