Creative Newtech Ltd Technical Momentum Shifts Amid Sideways Trend

Technical Trend Overview

Creative Newtech Ltd, operating within the miscellaneous sector, currently trades at ₹655.05, slightly up from its previous close of ₹650.35, marking a modest intraday gain of 0.72%. The stock’s 52-week range spans from ₹600.05 to ₹796.00, indicating a significant volatility band over the past year. The recent technical trend has shifted from mildly bearish to sideways, suggesting that the stock is currently consolidating after a period of downward pressure.

This sideways movement is corroborated by the Dow Theory, which shows no definitive trend on both weekly and monthly charts. Similarly, the On-Balance Volume (OBV) indicator remains neutral, indicating a lack of strong buying or selling pressure. The KST (Know Sure Thing) oscillator also reflects a neutral stance on weekly and monthly timeframes, reinforcing the notion of a market pause.

MACD and RSI Signals

The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, has shown a flattening pattern on the weekly chart, signalling a loss of bearish momentum but without a clear bullish crossover yet. The monthly MACD remains subdued, indicating that longer-term momentum has yet to improve significantly. This suggests that while short-term selling pressure has eased, the stock has not yet embarked on a sustained upward trajectory.

The Relative Strength Index (RSI) also supports this view. On the weekly scale, the RSI hovers near the mid-50s, a neutral zone that neither indicates overbought nor oversold conditions. The monthly RSI similarly remains in a balanced range, reflecting a lack of strong directional bias. This equilibrium in momentum oscillators points to a stock that is consolidating rather than trending decisively.

Moving Averages and Bollinger Bands

Daily moving averages provide further insight into the stock’s current technical posture. The short-term moving averages are closely aligned with the current price, indicating a lack of clear directional momentum. The Bollinger Bands on weekly and monthly charts show a contraction, which often precedes a volatility expansion. This squeeze suggests that Creative Newtech Ltd may be poised for a breakout, but the direction remains uncertain at this stage.

Investors should note that the stock’s price remains below its 52-week high of ₹796.00, reflecting a retracement from previous highs. The proximity to the 52-week low of ₹600.05, however, indicates that downside risk is somewhat contained. The current price action within this range highlights the importance of monitoring technical signals closely for signs of a breakout or breakdown.

Comparative Performance and Market Context

When analysing Creative Newtech Ltd’s returns relative to the broader market, the stock has underperformed the Sensex over most periods. Over the past week, the stock gained 0.54%, outperforming the Sensex’s marginal 0.02% rise. However, over the last month, the stock declined by 4.87%, while the Sensex advanced 2.15%. Year-to-date, Creative Newtech Ltd has fallen 9.06%, compared to the Sensex’s 2.26% decline.

Longer-term data is unavailable for the stock, but the Sensex’s robust 10.60% gain over the past year and 39.74% over three years highlights the stock’s relative weakness. This underperformance may be attributed to sector-specific challenges or company-specific factors that have weighed on investor sentiment.

Mojo Score and Rating Upgrade

MarketsMOJO has upgraded Creative Newtech Ltd’s Mojo Grade from Sell to Hold as of 23 February 2026, reflecting a modest improvement in the stock’s outlook. The current Mojo Score stands at 54.0, indicating a neutral stance with room for improvement. The Market Cap Grade is 4, suggesting a micro-cap classification with associated liquidity and volatility considerations.

This upgrade aligns with the technical shift from bearish to sideways, signalling that while the stock is not yet a strong buy, it has stabilised enough to warrant a hold rating. Investors should weigh this alongside the technical indicators and broader market conditions before making allocation decisions.

Outlook and Investor Considerations

Creative Newtech Ltd’s current technical profile suggests a stock in consolidation, with momentum oscillators and moving averages indicating a pause in directional movement. The contraction in Bollinger Bands hints at an impending volatility expansion, which could lead to a breakout or breakdown depending on market catalysts.

Investors should monitor key technical levels closely. A sustained move above the recent highs near ₹655 could signal renewed bullish momentum, while a drop below the recent lows around ₹644.70 may indicate a resumption of bearish pressure. Given the sideways trend and neutral technical signals, a cautious approach is advisable.

Summary

Creative Newtech Ltd’s technical indicators collectively point to a stock in a consolidation phase, with momentum oscillators such as MACD and RSI neutralising after a period of bearishness. The sideways trend, supported by neutral volume and trend indicators, suggests that investors should await clearer signals before committing to a directional trade.

The recent Mojo Grade upgrade to Hold reflects this tempered optimism, while the stock’s relative underperformance against the Sensex underscores the need for selective exposure. Technical traders should watch for a breakout from the current range, as the Bollinger Band squeeze indicates that volatility is likely to increase in the near term.

In conclusion, Creative Newtech Ltd offers a cautious opportunity for investors willing to monitor technical developments closely, with the potential for a meaningful move once momentum decisively shifts.

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