Centrum Capital Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Momentum and Indicator Overview

On 12 Feb 2026, Centrum Capital Ltd closed at ₹27.80, up from the previous close of ₹26.40, marking a significant 5.3% day gain. The stock traded within a range of ₹25.88 to ₹28.00, still well below its 52-week high of ₹41.90 but comfortably above its 52-week low of ₹22.41. This price action signals a short-term recovery attempt after a prolonged period of underperformance.

Technically, the stock’s overall trend has shifted from bearish to mildly bearish, indicating a tentative improvement in price momentum but not yet a full reversal. The daily moving averages remain mildly bearish, suggesting that while short-term price action is positive, the medium-term trend still lacks conviction.

The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly timeframes, signalling that the underlying momentum is still weak. This bearish MACD reading implies that the recent price gains may be corrective rather than the start of a sustained uptrend.

Relative Strength Index (RSI) readings on weekly and monthly charts show no clear signal, hovering in neutral zones. This lack of RSI confirmation suggests that the stock is neither overbought nor oversold, leaving room for either further upside or downside depending on upcoming market catalysts.

Bollinger Bands and KST Analysis

Bollinger Bands on weekly and monthly charts indicate a mildly bearish stance, reflecting that price volatility remains subdued but with a downward bias. The stock price is currently near the lower-middle band, which often acts as a support level in mildly bearish phases.

The Know Sure Thing (KST) oscillator, a momentum indicator, is bearish on the weekly chart and mildly bearish on the monthly chart. This divergence between timeframes suggests that while short-term momentum is weak, there may be some stabilisation occurring over the longer term.

Volume and Dow Theory Signals

On-Balance Volume (OBV) readings provide a mildly bullish signal on the weekly timeframe, indicating that volume trends are somewhat supportive of recent price gains. However, monthly OBV shows no clear trend, implying that longer-term investor conviction remains uncertain.

Dow Theory analysis presents a mildly bullish signal on the weekly chart but no discernible trend on the monthly chart. This mixed message highlights the stock’s current indecision phase, where short-term technicals hint at potential recovery but longer-term trends remain unresolved.

Comparative Performance and Market Context

Examining Centrum Capital’s returns relative to the Sensex reveals a mixed performance over various time horizons. The stock outperformed the Sensex over the past week with a 9.45% gain compared to the benchmark’s 0.50%, reflecting strong short-term momentum. However, over the one-month period, the stock was flat while the Sensex gained 0.79%, indicating some recent consolidation.

Year-to-date, Centrum Capital has declined by 4.43%, underperforming the Sensex’s 1.16% loss, and over the past year, the stock fell 3.74% while the Sensex rose 10.41%. Longer-term returns also lag the benchmark, with three-year returns at 25.23% versus Sensex’s 38.81%, and five-year returns at 11.20% against 63.46% for the Sensex. Over a decade, the stock’s 98.71% gain is significantly below the Sensex’s 267.00% rise.

This relative underperformance highlights the challenges Centrum Capital faces in regaining investor confidence and market share within the NBFC sector, which itself has been volatile amid regulatory and macroeconomic pressures.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Centrum Capital a Mojo Score of 21.0, categorising it as a Strong Sell. This rating was downgraded from Sell on 24 Nov 2025, reflecting deteriorating fundamentals and technical outlook. The company’s Market Cap Grade stands at 4, indicating a relatively small market capitalisation and associated liquidity risks.

The downgrade to Strong Sell aligns with the mixed technical signals and weak longer-term returns, signalling caution for investors considering exposure to this micro-cap NBFC.

Outlook and Investor Considerations

While the recent 5.3% intraday gain and mildly bullish weekly volume indicators suggest some short-term buying interest, the prevailing bearish MACD and mildly bearish moving averages caution against expecting a sustained rally without fundamental improvements.

Investors should closely monitor whether Centrum Capital can break above key resistance levels near ₹28.00 and sustain momentum above its daily moving averages. Failure to do so may result in renewed selling pressure towards the 52-week low of ₹22.41.

Given the stock’s relative underperformance versus the Sensex and the NBFC sector’s ongoing challenges, a cautious approach is warranted. The current technical setup suggests a tentative recovery phase but not a confirmed uptrend.

Summary

Centrum Capital Ltd’s technical parameters reveal a stock in transition, with a shift from bearish to mildly bearish momentum accompanied by mixed signals across key indicators such as MACD, RSI, Bollinger Bands, and moving averages. While short-term price action and volume trends show some bullish tendencies, the longer-term technical outlook remains cautious.

Relative underperformance against the Sensex and a recent downgrade to a Strong Sell rating by MarketsMOJO underscore the challenges ahead. Investors should weigh these technical signals alongside fundamental factors before considering exposure to this NBFC micro-cap.

In the current environment, patience and careful analysis remain essential, as the stock navigates a complex technical landscape amid broader sector headwinds.

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