Creative Newtech Ltd Faces Technical Momentum Shift Amid Bearish Sentiment

Technical Trend Evolution and Price Movement

The stock of Creative Newtech Ltd closed at ₹682.65 on 1 Feb 2026, down 0.61% from the previous close of ₹686.85. The intraday range saw a high of ₹696.00 and a low of ₹680.05, indicating a relatively narrow trading band. Over the past week, the stock has declined by 1.75%, contrasting with the Sensex’s 1.09% gain, signalling relative weakness in the stock’s price action.

Over the one-month period, Creative Newtech’s return stands at -5.03%, underperforming the Sensex’s -2.38%. Year-to-date, the stock has fallen 6.03%, while the benchmark index has declined by 3.10%. The one-year return is particularly concerning, with the stock down 22.05% against the Sensex’s robust 8.91% gain. Despite this, the longer-term performance remains impressive, with a five-year return of 546.76% compared to the Sensex’s 85.71%, underscoring the stock’s historical growth potential.

MACD and Momentum Indicators Signal Stagnation

The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, has shown a lack of clear directional bias on both weekly and monthly charts. The absence of a definitive MACD crossover suggests that momentum has stalled, corroborating the shift from a mildly bearish to a sideways trend. This stagnation in momentum is a cautionary signal for traders who rely on MACD for trend confirmation.

Similarly, the Relative Strength Index (RSI) on weekly and monthly timeframes remains neutral, neither indicating overbought nor oversold conditions. This equilibrium in RSI values further supports the sideways consolidation phase, implying that the stock is currently lacking strong directional impetus.

Moving Averages and Bollinger Bands Reflect Consolidation

Daily moving averages have flattened, with short-term averages converging towards longer-term ones, signalling a pause in the previous downtrend. The Bollinger Bands on weekly and monthly charts have narrowed, indicating reduced volatility and a consolidation phase. Such technical patterns often precede a significant price move, but the direction remains uncertain at this stage.

Additional Technical Signals: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator on weekly and monthly charts does not present a clear trend, aligning with the overall sideways momentum. Dow Theory assessments remain mildly bearish on a weekly basis but neutral on the monthly scale, reflecting mixed signals from market breadth and price action.

On-Balance Volume (OBV) analysis shows no discernible trend on the weekly or monthly charts, suggesting that volume is not confirming any price breakout or breakdown. This lack of volume support further emphasises the current indecisiveness among market participants.

Mojo Score and Grade Revision Reflect Caution

MarketsMOJO’s latest assessment assigns Creative Newtech Ltd a Mojo Score of 48.0, categorising it as a Sell with a downgraded Mojo Grade from Hold to Sell as of 27 Jan 2026. This downgrade reflects the deteriorating technical outlook and the stock’s underperformance relative to the broader market. The Market Cap Grade remains low at 4, indicating limited market capitalisation strength compared to peers.

The downgrade is consistent with the technical indicators signalling a loss of upward momentum and the emergence of sideways price action. Investors should be wary of the stock’s current technical posture, which suggests limited near-term upside and potential for further consolidation or decline.

Comparative Performance and Sector Context

Creative Newtech operates within the miscellaneous sector, which has seen mixed performance in recent months. The stock’s relative weakness compared to the Sensex highlights challenges in maintaining investor confidence amid broader market volatility. While the stock’s long-term returns remain impressive, the recent technical signals and price momentum shifts warrant a cautious approach.

Investors should monitor key support levels near the 52-week low of ₹594.75 and resistance around the 52-week high of ₹1,014.00. The current price near ₹682.65 suggests the stock is trading closer to its lower range, reinforcing the sideways trend narrative.

Investor Takeaway and Outlook

The technical landscape for Creative Newtech Ltd suggests a period of consolidation following a phase of mild bearishness. The neutral stance of momentum indicators such as MACD and RSI, combined with flattening moving averages and narrowing Bollinger Bands, points to a stock in equilibrium but lacking clear directional conviction.

Given the downgrade to a Sell rating and the stock’s underperformance relative to the Sensex, investors should exercise caution. Those holding the stock may consider tightening stop-loss levels or reducing exposure until a clearer trend emerges. Conversely, prospective buyers might wait for confirmation of a breakout above resistance or a sustained improvement in technical indicators before committing capital.

Long-term investors can take some comfort from the stock’s strong five-year returns, but the current technical signals advise prudence in the near term. Monitoring volume trends and key technical levels will be critical to anticipating the next meaningful move.

Summary of Key Technical Metrics:

• Current Price: ₹682.65
• 52-Week Range: ₹594.75 - ₹1,014.00
• Mojo Score: 48.0 (Sell, downgraded from Hold)
• Market Cap Grade: 4
• Weekly Trend: Mildly Bearish to Sideways
• MACD: Neutral on Weekly and Monthly
• RSI: Neutral on Weekly and Monthly
• Moving Averages: Flattening on Daily
• Bollinger Bands: Narrowing on Weekly and Monthly
• Dow Theory: Mildly Bearish Weekly, Neutral Monthly
• OBV: No clear trend

Investors should continue to monitor these indicators closely as they provide valuable insights into the stock’s evolving momentum and potential directional shifts.

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