Current Price and Market Context
As of 20 Feb 2026, Empire Industries Ltd closed at ₹898.00, down 2.18% from the previous close of ₹918.00. The stock traded within a range of ₹893.30 to ₹918.05 during the day, remaining close to its 52-week low of ₹880.35, and significantly below its 52-week high of ₹1,275.00. This price action reflects a weakening momentum in the near term, with the stock underperforming the broader market indices.
Technical Trend Shift: From Mildly Bearish to Bearish
The technical trend for Empire Industries has deteriorated from mildly bearish to outright bearish, signalling a more pronounced downtrend. This shift is corroborated by several technical indicators across different timeframes, painting a complex picture for traders and investors.
MACD Analysis
The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart, indicating sustained downward momentum. On the monthly chart, the MACD is mildly bearish, suggesting that while the longer-term trend is still negative, the intensity of the bearishness is less severe. This divergence between weekly and monthly MACD readings highlights the stock’s current struggle to regain upward momentum.
RSI Signals
The Relative Strength Index (RSI) presents a mixed scenario. On the weekly timeframe, the RSI is bullish, implying some short-term buying interest or oversold conditions that could lead to a temporary bounce. However, the monthly RSI shows no clear signal, indicating a lack of strong directional conviction over the longer term. This disparity suggests that while short-term traders might find opportunities, the broader trend remains uncertain.
Bollinger Bands and Moving Averages
Bollinger Bands on both weekly and monthly charts are bearish, reflecting increased volatility and downward pressure on the stock price. The daily moving averages also confirm a bearish stance, with the stock trading below key averages, signalling that the immediate trend is negative. This alignment of multiple indicators on shorter timeframes reinforces the cautionary outlook.
KST and Dow Theory Perspectives
The Know Sure Thing (KST) indicator shows a mildly bullish signal on the weekly chart but remains mildly bearish on the monthly chart. Similarly, Dow Theory assessments align with this mixed view, indicating mild bullishness weekly but mild bearishness monthly. These nuanced signals suggest that while there may be short-term rallies, the dominant trend over the medium term is still under pressure.
On-Balance Volume (OBV) and Market Sentiment
OBV data for Empire Industries is not explicitly available for weekly or monthly periods, limiting the ability to assess volume-driven momentum. Nonetheless, the overall technical picture, combined with price action, points to a cautious market sentiment towards the stock.
Comparative Performance Versus Sensex
Empire Industries has underperformed the Sensex across multiple time horizons. Over the past week, the stock declined by 4.61%, compared to the Sensex’s 1.41% fall. The one-month return shows a 2.63% drop for Empire Industries against a 0.90% decline in the Sensex. Year-to-date, the stock has fallen 6.96%, more than double the Sensex’s 3.19% loss. Over the last year, the divergence is starker, with Empire Industries down 13.72% while the Sensex gained 8.64%.
Longer-term returns also reveal underperformance: over five years, Empire Industries has delivered 53.68% returns, lagging behind the Sensex’s 62.11%. The 10-year return is particularly concerning, with the stock down 39.32% compared to the Sensex’s robust 247.96% gain. These figures underscore the challenges the company faces in delivering consistent shareholder value relative to the broader market.
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Mojo Score and Rating Update
MarketsMOJO has downgraded Empire Industries Ltd from a Hold to a Sell rating as of 17 Nov 2025, reflecting the deteriorating technical and fundamental outlook. The current Mojo Score stands at 40.0, signalling weak momentum and limited upside potential. The Market Cap Grade is 4, indicating a mid-tier market capitalisation but not enough to offset the negative technical signals.
Implications for Investors
The combination of bearish MACD, declining moving averages, and weak price performance relative to the Sensex suggests that Empire Industries is currently in a downtrend. While short-term RSI and KST signals hint at possible minor rallies, these are unlikely to reverse the broader negative trend without significant fundamental improvements or positive catalysts.
Investors should be wary of the stock’s proximity to its 52-week low and the persistent underperformance over multiple timeframes. The technical deterioration aligns with the downgrade in Mojo Grade, reinforcing the need for caution. Those holding the stock may consider re-evaluating their positions in light of these signals.
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Technical Outlook and Moving Averages
The daily moving averages remain firmly bearish, with the stock price trading below its key short-term and medium-term averages. This suggests that any rallies are likely to face resistance near these levels. The weekly and monthly Bollinger Bands also indicate increased volatility with a downward bias, reinforcing the bearish momentum.
Given the mixed signals from oscillators like RSI and KST, traders might find short-term trading opportunities, but the overall trend remains unfavourable. The lack of strong volume confirmation via OBV further weakens the case for a sustained recovery.
Conclusion: A Cautious Approach Recommended
Empire Industries Ltd’s technical parameters have shifted decisively towards a bearish stance, with multiple indicators confirming weakening momentum. The downgrade in Mojo Grade to Sell and the underperformance relative to the Sensex highlight the challenges ahead. Investors should approach the stock with caution, considering the risk of further downside and limited near-term catalysts for a turnaround.
While short-term bullish signals exist, they are insufficient to offset the broader negative trend. A thorough review of portfolio exposure to Empire Industries, alongside consideration of alternative investment opportunities, is advisable in the current environment.
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