Ethos Ltd Faces Technical Setback Amid Bearish Momentum and Downgrade

Technical Trend and Momentum Overview

Recent technical analysis reveals that Ethos Ltd’s price momentum has softened considerably. The stock closed at ₹2,469.75, down 1.86% from the previous close of ₹2,516.65, with intraday trading ranging between ₹2,457.50 and ₹2,550.00. This decline is consistent with the broader technical trend change from a sideways pattern to a mildly bearish stance, indicating that sellers are gaining incremental control over the near-term price action.

The 52-week price range of ₹1,871.02 to ₹3,244.45 highlights the stock’s volatility over the past year, with the current price sitting closer to the lower end of this spectrum. This positioning suggests limited upside momentum in the immediate term, especially given the recent technical signals.

MACD and RSI Signals

The Moving Average Convergence Divergence (MACD) indicator presents a bearish outlook on the weekly timeframe, signalling that downward momentum is prevailing. On the monthly chart, the MACD remains mildly bearish, indicating that while the longer-term trend is not decisively negative, it lacks strong bullish conviction. This divergence between weekly and monthly MACD readings suggests that short-term selling pressure may persist even if the longer-term trend remains somewhat stable.

Relative Strength Index (RSI) readings for both weekly and monthly periods currently show no clear signal, hovering in neutral zones. This absence of RSI extremes implies that the stock is neither overbought nor oversold, which could mean that the current price movements are part of a broader consolidation phase rather than a sharp directional move.

Bollinger Bands and Moving Averages

Bollinger Bands analysis further corroborates the bearish sentiment, with both weekly and monthly bands indicating downward pressure. The stock price has been testing the lower band on the weekly chart, a classic sign of bearish momentum. However, the daily moving averages paint a slightly more optimistic picture, showing a mildly bullish trend. This suggests that while the short-term momentum is weak, some support may be forming at lower levels, potentially limiting further declines.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator presents a mixed picture: weekly readings are bearish, reinforcing short-term weakness, while monthly readings are bullish, suggesting that longer-term momentum may still be intact. This divergence highlights the complexity of the stock’s technical landscape and the importance of monitoring multiple timeframes.

Dow Theory assessments align with the mildly bearish weekly trend, indicating that the stock is currently in a corrective phase. The monthly Dow Theory shows no clear trend, reflecting uncertainty in the broader market context for Ethos Ltd.

On-Balance Volume (OBV) analysis also reveals contrasting signals. Weekly OBV is mildly bearish, implying that volume trends support the recent price declines. Conversely, the monthly OBV is mildly bullish, suggesting that accumulation may be occurring at higher timeframes, potentially providing a foundation for future recovery.

Mojo Score and Grade Downgrade

MarketsMOJO’s proprietary scoring system has downgraded Ethos Ltd’s Mojo Grade from Hold to Sell as of 13 February 2026, with a current Mojo Score of 35.0. This downgrade reflects deteriorating technical and fundamental factors, signalling increased risk for investors. The Market Cap Grade remains low at 3, underscoring the company’s relatively modest market capitalisation and liquidity constraints compared to larger peers.

This downgrade is significant as it aligns with the technical indicators pointing to weakening momentum and increased bearishness. Investors should weigh this rating carefully when considering exposure to Ethos Ltd.

Comparative Returns and Market Context

Ethos Ltd’s recent returns have underperformed the benchmark Sensex across multiple periods. Over the past week, the stock declined by 1.59%, slightly worse than the Sensex’s 1.41% fall. The one-month return was down 1.97%, more than double the Sensex’s 0.90% decline. Year-to-date, Ethos Ltd has suffered a steep 16.8% loss, significantly underperforming the Sensex’s 3.19% drop.

However, on a longer horizon, Ethos Ltd has delivered strong gains, with a 3-year return of 154.52% compared to the Sensex’s 35.24%, and a positive 6.05% return over the past year, albeit below the Sensex’s 8.64%. These figures highlight the stock’s historical growth potential but also emphasise recent volatility and correction phases.

Investor Implications and Outlook

Given the current technical landscape, Ethos Ltd appears to be navigating a challenging phase. The confluence of bearish weekly MACD, Bollinger Bands pressure, and a downgrade in Mojo Grade suggests that investors should exercise caution. The mildly bullish daily moving averages and monthly KST and OBV indicators offer some hope for a stabilisation or recovery, but these signals remain tentative.

Investors with a medium to long-term horizon may consider monitoring the stock for signs of a confirmed trend reversal, particularly if monthly indicators strengthen and the stock price moves above key moving averages. Conversely, short-term traders might view the current technical signals as a warning to reduce exposure or employ protective strategies such as stop-loss orders.

Comparisons with the Sensex and sector peers indicate that Ethos Ltd’s recent underperformance is not isolated, reflecting broader market pressures on the Gems, Jewellery and Watches sector. This context is crucial for portfolio allocation decisions, as sector-wide dynamics may influence the stock’s trajectory irrespective of company-specific factors.

Summary

Ethos Ltd’s technical parameters have shifted towards a mildly bearish momentum, with weekly indicators signalling caution and monthly indicators offering mixed signals. The downgrade to a Sell Mojo Grade reinforces the need for prudence. While the stock’s long-term returns remain impressive, recent price action and technical signals suggest a period of consolidation or correction may be underway. Investors should carefully balance these factors against their risk tolerance and investment horizon.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today