Technical Trend Overview
Recent analysis reveals that Empire Industries Ltd’s technical trend has shifted from mildly bearish to outright bearish. The stock closed at ₹920.00 on 6 Feb 2026, down 2.04% from the previous close of ₹939.15. Intraday, the price fluctuated between ₹919.95 and ₹948.75, remaining well below its 52-week high of ₹1,275.00, while hovering just above the 52-week low of ₹880.35. This price action reflects a subdued investor sentiment amid broader market volatility.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD remains bearish, indicating that the short-term momentum is weakening relative to the longer-term trend. The monthly MACD, however, is mildly bearish, suggesting that while the longer-term momentum is not strongly negative, it lacks the strength to support a sustained rally. This divergence between weekly and monthly MACD readings highlights the stock’s current technical uncertainty.
RSI Signals and Overbought/Oversold Conditions
The Relative Strength Index (RSI) on the weekly chart is bullish, signalling some short-term buying interest and potential for a rebound. However, the monthly RSI shows no clear signal, implying that the stock is neither overbought nor oversold in the longer term. This lack of a definitive monthly RSI signal suggests that the stock’s momentum is currently range-bound, with neither bulls nor bears dominating decisively.
Moving Averages and Bollinger Bands
Daily moving averages have turned bearish, reinforcing the negative short-term outlook. The stock price remains below key moving averages, which often act as resistance levels in a downtrend. Bollinger Bands on both weekly and monthly charts are mildly bearish, indicating that volatility is increasing but the price is trending towards the lower band, a sign of potential downward pressure.
Additional Technical Indicators
The Know Sure Thing (KST) indicator aligns with the bearish narrative, showing bearish momentum on the weekly chart and mildly bearish on the monthly chart. Dow Theory assessments also reflect a mildly bearish stance weekly, with no clear trend on the monthly timeframe. On Balance Volume (OBV) data is inconclusive, lacking clear directional cues, which suggests volume trends are not strongly supporting either buying or selling pressure at present.
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Price Performance Relative to Sensex
Empire Industries Ltd’s price returns have underperformed the benchmark Sensex over multiple time horizons. Over the past week, the stock gained 1.55%, slightly outperforming the Sensex’s 0.91% rise. However, over the last month and year-to-date, the stock declined by 4.48% and 4.68% respectively, compared to Sensex declines of 2.49% and 2.24%. The one-year return is particularly concerning, with the stock down 19.23% while the Sensex gained 6.44%. Longer-term returns over three and five years show modest outperformance, with the stock returning 39.19% and 47.29% against the Sensex’s 36.94% and 64.22%. Yet, the ten-year return starkly contrasts, with Empire Industries down 41.70% versus the Sensex’s robust 238.44% gain, underscoring the stock’s historical underperformance in the broader market context.
Mojo Score and Rating Changes
MarketsMOJO assigns Empire Industries Ltd a Mojo Score of 40.0, categorising it as a Sell. This represents a downgrade from the previous Hold rating, effective 17 Nov 2025. The Market Cap Grade stands at 4, reflecting the company’s mid-tier market capitalisation within the diversified sector. The downgrade signals a deterioration in the company’s fundamental and technical outlook, advising investors to exercise caution.
Implications for Investors
The convergence of bearish technical indicators, including the daily moving averages and weekly MACD, alongside the downgrade in Mojo Grade, suggests that Empire Industries Ltd is currently facing downward momentum. While the weekly RSI’s bullish signal hints at some short-term buying interest, the overall technical landscape remains unfavourable. Investors should be wary of potential further declines, especially given the stock’s recent underperformance relative to the Sensex and the absence of strong volume support.
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Outlook and Conclusion
Empire Industries Ltd’s technical parameters indicate a challenging environment ahead. The shift to a bearish trend, confirmed by multiple indicators such as MACD, moving averages, and Bollinger Bands, suggests that the stock may continue to face downward pressure in the near term. The mixed signals from RSI and the lack of strong volume confirmation imply that any rallies may be short-lived without fundamental improvements.
Given the downgrade to a Sell rating and the stock’s underperformance relative to the Sensex, investors should consider reassessing their exposure to Empire Industries Ltd. Monitoring key support levels near the 52-week low of ₹880.35 will be critical, as a breach could signal further downside. Conversely, a sustained move above daily moving averages and a positive shift in MACD could offer early signs of recovery.
In summary, while Empire Industries Ltd has shown resilience in certain short-term metrics, the prevailing technical and fundamental indicators counsel prudence. Investors seeking growth or stability in the diversified sector may find more compelling opportunities elsewhere, especially given the availability of superior alternatives identified through comprehensive multi-parameter evaluations.
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