Colgate-Palmolive (India) Ltd Shows Mixed Technical Signals Amid Mild Momentum Shift

Technical Trend Overview and Price Movement

On 9 Feb 2026, Colgate-Palmolive (India) Ltd closed at ₹2,134.90, up from the previous close of ₹2,113.70, marking a 1.00% daily increase. The intraday range saw a low of ₹2,088.00 and a high of ₹2,139.40, indicating moderate volatility within the session. The stock remains well below its 52-week high of ₹2,745.95 and slightly above its 52-week low of ₹2,030.75, underscoring a consolidation phase within a broad trading range.

The technical trend has shifted from bearish to mildly bearish, signalling a tentative improvement in price momentum. This subtle change suggests that while the downtrend has not fully reversed, selling pressure may be easing, potentially paving the way for a stabilisation or gradual recovery.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed timeframe outlook. On the weekly chart, the MACD is mildly bullish, indicating that short-term momentum is gaining some traction. However, the monthly MACD remains bearish, reflecting longer-term downward pressure. This divergence between weekly and monthly MACD readings highlights the stock’s current transitional phase, where short-term gains are yet to translate into sustained long-term strength.

The Know Sure Thing (KST) indicator remains bearish on both weekly and monthly charts, reinforcing caution among investors regarding the stock’s momentum. The KST’s bearish stance suggests that despite some short-term improvements, the broader momentum remains subdued.

RSI and Overbought/Oversold Conditions

The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no definitive signal, hovering in neutral territory. This absence of an overbought or oversold condition implies that the stock is neither excessively bought nor sold, which may indicate a period of consolidation or indecision among market participants.

Moving Averages and Bollinger Bands

Daily moving averages continue to reflect a mildly bearish trend, with the stock price lingering near or slightly below key averages. This suggests that while the immediate downtrend has softened, the stock has yet to decisively break above resistance levels to confirm a bullish reversal.

Bollinger Bands on both weekly and monthly charts are mildly bearish, indicating that price volatility remains somewhat constrained within a downward bias. The bands’ contraction suggests reduced price swings, which often precedes a breakout or breakdown, signalling investors should monitor for potential volatility shifts.

Volume and On-Balance Volume (OBV) Analysis

On-Balance Volume (OBV) readings are mildly bullish on both weekly and monthly charts, signalling that volume trends are supporting the recent price gains. This divergence between price and volume indicators may suggest accumulation by informed investors, providing a subtle bullish undertone despite the prevailing technical caution.

Broader Market Context and Comparative Returns

When compared with the broader Sensex index, Colgate-Palmolive’s recent returns show a mixed performance. Over the past week, the stock gained 1.01%, lagging behind the Sensex’s 1.59% rise. However, over the last month and year-to-date periods, the stock outperformed the Sensex, delivering gains of 2.19% and 2.85% respectively, while the Sensex declined by 1.74% and 1.92% over the same intervals.

Longer-term returns reveal a more challenging picture. Over the past year, the stock has declined by 19.95%, contrasting with the Sensex’s 7.07% gain. Over three years, Colgate-Palmolive has delivered a 46.78% return, outperforming the Sensex’s 38.13%. However, over five and ten years, the stock’s returns of 34.18% and 150.49% lag behind the Sensex’s 64.75% and 239.52% respectively, indicating underperformance relative to the broader market in the long run.

Market Cap and Mojo Score Insights

Colgate-Palmolive (India) Ltd holds a Market Cap Grade of 2, reflecting its standing among large-cap FMCG peers. The company’s Mojo Score currently stands at 34.0, with a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 3 Feb 2026. This upgrade signals a slight improvement in the stock’s technical and fundamental outlook, though it remains a cautious sell recommendation.

The upgrade in Mojo Grade suggests that while the stock’s risk profile has moderated, significant challenges remain, particularly in sustaining upward momentum and overcoming sectoral headwinds. Investors should weigh these factors carefully when considering exposure to the stock.

Dow Theory and Trend Confirmation

According to Dow Theory, both weekly and monthly charts show no clear trend, indicating a lack of definitive directional confirmation. This absence of trend alignment across timeframes adds to the uncertainty surrounding the stock’s near-term trajectory, reinforcing the need for prudent risk management.

Investment Implications and Outlook

Colgate-Palmolive’s technical indicators collectively paint a picture of a stock in transition. The mild bullish signals from weekly MACD and OBV contrast with bearish KST and moving averages, suggesting a tentative bottoming process rather than a confirmed uptrend. The neutral RSI readings and lack of Dow Theory trend confirmation further underscore the stock’s consolidation phase.

Investors should monitor key technical levels, including the 52-week low of ₹2,030.75 as critical support and the 52-week high of ₹2,745.95 as resistance. A sustained break above daily moving averages and monthly MACD turning bullish would be necessary to confirm a more robust recovery. Conversely, failure to hold support levels could trigger renewed selling pressure.

Sector and Industry Context

Operating within the FMCG sector, Colgate-Palmolive faces competitive pressures and evolving consumer preferences that influence its stock performance. The sector’s defensive characteristics have historically provided stability, but recent market volatility and inflationary pressures have tested resilience across FMCG stocks.

Colgate-Palmolive’s technical signals suggest it is navigating these challenges with some resilience, as evidenced by the mild bullish volume trends and improved Mojo Grade. However, the stock’s underperformance relative to the Sensex over the past year and longer-term periods highlights the need for investors to consider sectoral dynamics and company-specific catalysts carefully.

Conclusion

In summary, Colgate-Palmolive (India) Ltd is exhibiting early signs of stabilisation in its technical momentum, shifting from bearish to mildly bearish territory. Mixed signals from MACD, RSI, moving averages, and volume indicators suggest a cautious outlook, with potential for gradual recovery if key resistance levels are breached. The recent upgrade in Mojo Grade to Sell from Strong Sell reflects this nuanced improvement but advises prudence.

Investors should closely monitor technical developments and broader market conditions before increasing exposure. Given the stock’s mixed performance relative to the Sensex and sector peers, a balanced approach incorporating risk management and alternative opportunities may be warranted.

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