Technical Trend Overview: From Bearish to Mildly Bearish
The technical trend for Credo Brands has transitioned from a firmly bearish stance to a mildly bearish one, indicating a slight easing in downward momentum but no definitive reversal. The daily moving averages continue to signal bearishness, with the stock price currently trading at ₹93.05, down 1.01% from the previous close of ₹94.00. This price remains perilously close to the 52-week low of ₹90.40, underscoring persistent weakness.
On the weekly timeframe, the Moving Average Convergence Divergence (MACD) indicator has turned mildly bullish, suggesting some short-term positive momentum. However, this is tempered by the monthly MACD, which remains inconclusive or neutral, offering no clear directional bias. The Relative Strength Index (RSI) on both weekly and monthly charts shows no significant signal, hovering in neutral zones and indicating neither overbought nor oversold conditions.
Bollinger Bands and Moving Averages Signal Continued Pressure
Bollinger Bands on both weekly and monthly charts remain bearish, reflecting sustained volatility and downward pressure on the stock price. The bands are relatively wide, indicating increased price fluctuations but with a downward bias. Daily moving averages reinforce this bearish outlook, with the stock trading below key averages, signalling resistance to any upward price movement in the near term.
Additional Technical Indicators: Mixed Signals
The Know Sure Thing (KST) indicator on the weekly chart is mildly bullish, hinting at a potential short-term recovery or consolidation phase. However, the monthly KST remains neutral, providing no strong directional guidance. Dow Theory analysis presents a mildly bearish weekly trend, while the monthly trend shows no clear pattern, reflecting uncertainty in the broader market context.
On-Balance Volume (OBV) analysis reveals no significant trend on the weekly chart but indicates mild bearishness on the monthly scale, suggesting that selling pressure may be gradually increasing over a longer horizon.
Price Performance Relative to Sensex
Credo Brands’ price performance has lagged considerably behind the benchmark Sensex index across multiple timeframes. Over the past week, the stock declined by 2.1%, compared to a 0.75% drop in the Sensex. The one-month return shows a sharper fall of 5.49% against the Sensex’s 1.98% decline. Year-to-date, the stock is down 8.01%, while the Sensex has only fallen 2.32%.
More strikingly, the one-year return for Credo Brands is a steep negative 41.31%, in stark contrast to the Sensex’s positive 8.65% gain. This underperformance highlights the stock’s vulnerability amid sectoral and company-specific challenges. Longer-term returns over three, five, and ten years are not available for Credo Brands, but the Sensex’s robust gains of 36.79%, 68.52%, and 240.06% respectively, underscore the stock’s laggard status within the broader market.
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Mojo Score and Rating Update
MarketsMOJO’s latest assessment downgraded Credo Brands from a Hold to a Sell rating on 29 October 2025, reflecting deteriorating technical and fundamental conditions. The current Mojo Score stands at 45.0, which is below the threshold for a positive outlook. The Market Cap Grade is a low 4, indicating limited market capitalisation strength relative to peers.
This downgrade aligns with the technical indicators’ bearish signals and the stock’s underwhelming price performance. Investors should note that the downgrade reflects both the company’s operational challenges and the subdued momentum in the Garments & Apparels sector.
Sectoral Context and Industry Challenges
Credo Brands operates within the Garments & Apparels industry, a sector currently facing headwinds from fluctuating raw material costs, shifting consumer preferences, and global supply chain disruptions. These factors have contributed to the stock’s weak price action and cautious technical outlook.
While some short-term technical indicators suggest mild bullishness, the broader trend remains bearish, signalling that any recovery may be limited or temporary without fundamental improvements.
Investor Implications and Outlook
Given the mixed technical signals and the prevailing bearish trend, investors should approach Credo Brands with caution. The stock’s proximity to its 52-week low and its significant underperformance relative to the Sensex highlight elevated risk levels. The absence of strong RSI or MACD confirmation on monthly charts suggests that a sustained reversal is not imminent.
Investors seeking exposure to the Garments & Apparels sector may consider monitoring Credo Brands closely for signs of technical stabilisation or fundamental turnaround before committing fresh capital. Meanwhile, risk-averse investors might prefer to explore alternatives with stronger technical momentum and more favourable ratings.
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Summary
Credo Brands Marketing Ltd’s technical parameters reveal a stock caught in a tenuous position. While weekly MACD and KST indicators hint at mild bullish momentum, the dominant signals from moving averages, Bollinger Bands, and Dow Theory remain bearish. The stock’s price continues to languish near its 52-week low, and its returns trail the Sensex significantly across all recent periods.
The downgrade to a Sell rating by MarketsMOJO, coupled with a modest Mojo Score of 45.0, underscores the challenges facing the company. Investors should weigh these technical and fundamental factors carefully, considering the broader sectoral headwinds and the stock’s subdued momentum before making investment decisions.
Looking Ahead
For Credo Brands to regain investor confidence, it will need to demonstrate sustained technical improvement supported by positive fundamental developments. Key indicators to watch include a break above daily moving averages, a bullish crossover in monthly MACD, and an RSI moving into oversold recovery territory. Until such signals emerge, the stock is likely to remain under pressure.
Market participants should remain vigilant and consider portfolio diversification strategies to mitigate risks associated with this stock’s current technical profile.
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