Emami Paper Mills Ltd Shows Mixed Technical Signals Amid Mild Momentum Shift

Technical Trend Overview and Price Movement

On 4 Feb 2026, Emami Paper Mills Ltd closed at ₹85.30, up from the previous close of ₹82.38, marking a daily increase of 3.54%. The stock traded within a range of ₹83.00 to ₹86.10 during the session. Despite this short-term uptick, the broader technical trend has shifted only modestly from bearish to mildly bearish, indicating cautious optimism among traders. The 52-week high stands at ₹122.66, while the 52-week low is ₹78.00, placing the current price closer to the lower end of its annual range.

MACD and Momentum Indicators Signal Caution

The Moving Average Convergence Divergence (MACD) remains bearish on both weekly and monthly charts, signalling that the underlying momentum is still weak. This bearish MACD suggests that the stock's recent gains may be corrective rather than indicative of a sustained uptrend. The weekly MACD histogram continues to show negative values, while the monthly MACD line remains below its signal line, reinforcing the cautious stance.

RSI Reflects Divergent Signals Across Timeframes

The Relative Strength Index (RSI) presents a mixed picture. On the weekly timeframe, the RSI is neutral with no clear signal, hovering around the mid-50s, which suggests neither overbought nor oversold conditions. However, the monthly RSI is bullish, indicating a gradual improvement in buying interest over the longer term. This divergence between weekly and monthly RSI readings highlights the stock’s current consolidation phase, where short-term volatility contrasts with a slowly improving longer-term momentum.

Moving Averages and Bollinger Bands Confirm Mild Bearishness

Daily moving averages remain bearish, with the stock trading below its 50-day and 200-day moving averages. This positioning typically signals downward pressure and a lack of sustained buying strength. Bollinger Bands on both weekly and monthly charts are mildly bearish, with the price near the lower band, suggesting limited upside momentum and potential volatility ahead. The narrowing of the bands also points to a period of consolidation, where a decisive breakout or breakdown could occur.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator is bearish on the weekly chart but mildly bullish on the monthly, mirroring the mixed signals seen in RSI. This suggests that while short-term momentum remains weak, there is a subtle improvement in the longer-term trend. Dow Theory analysis shows a mildly bullish weekly trend but no clear trend on the monthly timeframe, further emphasising the stock’s current indecisiveness.

On-Balance Volume (OBV) does not show any significant trend on either weekly or monthly charts, indicating that volume flow is not strongly supporting price movements. This lack of volume confirmation often signals that price changes may not be sustainable without stronger buying or selling pressure.

Comparative Performance Against Sensex

Emami Paper Mills Ltd’s recent returns have lagged behind the broader market benchmark, the Sensex, over most timeframes. Over the past week, the stock returned 2.55%, slightly outperforming the Sensex’s 2.30%. However, over the last month, the stock declined by 3.62%, underperforming the Sensex’s 2.36% drop. Year-to-date, the stock is down 1.64%, marginally better than the Sensex’s 1.74% loss.

Longer-term performance remains a concern. Over one year, Emami Paper has declined 15.96%, while the Sensex gained 8.49%. Over three years, the stock has fallen 39.91%, contrasting sharply with the Sensex’s 37.63% gain. Even over five years, the stock is down 12.87%, while the Sensex surged 66.63%. The 10-year return of 78.08% for Emami Paper is respectable but still significantly behind the Sensex’s 245.70% gain, highlighting the stock’s persistent underperformance relative to the broader market.

Mojo Score and Rating Update

MarketsMOJO has recently adjusted Emami Paper Mills Ltd’s Mojo Grade from Strong Sell to Sell as of 3 Feb 2026, reflecting a slight improvement in technical outlook but still signalling caution. The current Mojo Score stands at 34.0, indicating weak fundamentals and technicals relative to peers. The Market Cap Grade is 4, suggesting a mid-tier market capitalisation within its sector.

Investor Takeaway and Outlook

Emami Paper Mills Ltd’s technical indicators suggest a cautious stance for investors. The shift from a strongly bearish to mildly bearish trend indicates some stabilisation, but the predominance of bearish signals from MACD, daily moving averages, and Bollinger Bands tempers enthusiasm. The divergence between weekly and monthly RSI and KST readings points to a stock in consolidation, with potential for either a recovery or further decline depending on upcoming market catalysts.

Given the stock’s underperformance relative to the Sensex over multiple timeframes and its modest Mojo Score, investors should weigh the risks carefully. The lack of volume confirmation and mixed technical signals imply that any rally may be short-lived without stronger fundamental support or sector tailwinds.

For those considering exposure to the Paper, Forest & Jute Products sector, it may be prudent to monitor Emami Paper’s technical developments closely while exploring alternative investments with stronger momentum and more favourable technical profiles.

Summary of Key Technical Metrics for Emami Paper Mills Ltd (as of 4 Feb 2026):

• Current Price: ₹85.30
• Daily Change: +3.54%
• 52-Week Range: ₹78.00 - ₹122.66
• MACD: Weekly & Monthly Bearish
• RSI: Weekly Neutral, Monthly Bullish
• Bollinger Bands: Weekly & Monthly Mildly Bearish
• Moving Averages (Daily): Bearish
• KST: Weekly Bearish, Monthly Mildly Bullish
• Dow Theory: Weekly Mildly Bullish, Monthly No Trend
• OBV: No Trend (Weekly & Monthly)
• Mojo Score: 34.0 (Sell, upgraded from Strong Sell)

Investors should continue to monitor these indicators for confirmation of trend direction and potential entry or exit points.

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