Eureka Forbes Ltd Faces Technical Downshift Amid Price Momentum Weakness

Price Movement and Market Context

On 5 Feb 2026, Eureka Forbes Ltd closed at ₹504.25, down sharply by 7.40% from the previous close of ₹544.55. The intraday range was volatile, with a high of ₹558.95 and a low of ₹496.10, reflecting heightened selling pressure. The stock remains well below its 52-week high of ₹668.50, while still above the 52-week low of ₹451.60, indicating a wide trading band over the past year.

Comparatively, the stock’s returns have lagged the broader Sensex benchmark significantly. Over the past week, Eureka Forbes declined by 3.85% while the Sensex gained 1.79%. The one-month and year-to-date returns are even more stark, with the stock down 19.19% and 18.31% respectively, against Sensex gains of 2.27% and 1.65%. Over the one-year horizon, the stock posted a negative return of 10.35%, contrasting with the Sensex’s positive 6.66% rise. This underperformance highlights the stock’s vulnerability amid sectoral and market headwinds.

Technical Indicator Analysis

The technical landscape for Eureka Forbes has shifted notably. The overall trend has moved from a neutral sideways pattern to a mildly bearish one, signalling a potential continuation of downward momentum in the near term.

MACD (Moving Average Convergence Divergence): The weekly MACD remains bearish, indicating that the short-term momentum is weaker than the longer-term trend. The monthly MACD is mildly bearish, suggesting that while the longer-term trend is not decisively negative, it is losing strength. This divergence between weekly and monthly MACD readings points to increasing selling pressure in the short term, with the possibility of a more sustained downtrend if the monthly trend deteriorates further.

RSI (Relative Strength Index): Both weekly and monthly RSI readings currently show no clear signal, hovering in neutral territory. This suggests that the stock is neither oversold nor overbought, leaving room for further directional movement based on other technical factors.

Bollinger Bands: The weekly and monthly Bollinger Bands are both bearish, indicating that the stock price is trending towards the lower band. This typically signals increased volatility and a bearish bias, as prices tend to revert to the mean after touching the bands. The current positioning near the lower band suggests selling momentum is dominant.

Moving Averages: On a daily basis, moving averages show a mildly bullish signal, reflecting some short-term support. However, this is overshadowed by the weekly and monthly bearish indicators, implying that any short-term rallies may be limited or temporary.

KST (Know Sure Thing): The weekly KST is mildly bearish, reinforcing the short-term negative momentum. Conversely, the monthly KST remains bullish, indicating that the longer-term momentum has not yet fully turned negative. This mixed signal suggests a cautious approach, as the stock may be at a technical inflection point.

Dow Theory: Both weekly and monthly Dow Theory assessments are mildly bearish, signalling that the broader market sentiment for the stock is weakening. This aligns with the other technical indicators pointing to a potential downtrend.

On-Balance Volume (OBV): The weekly OBV is mildly bearish, indicating that volume trends are supporting the price decline. The monthly OBV shows no clear trend, suggesting that longer-term volume patterns are inconclusive at this stage.

Mojo Score and Rating Update

Eureka Forbes currently holds a Mojo Score of 40.0, categorised as a Sell rating. This represents a downgrade from its previous Hold grade, effective from 24 Nov 2025. The downgrade reflects the deteriorating technical parameters and the stock’s underperformance relative to the broader market and its sector peers. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation within the Electronics & Appliances sector.

The downgrade is consistent with the technical signals, as the stock’s momentum indicators have weakened and price action has turned bearish. Investors should weigh these factors carefully, especially given the stock’s recent sharp declines and lack of clear bullish signals from momentum oscillators.

Sector and Industry Context

Operating within the Electronics & Appliances sector, Eureka Forbes faces competitive pressures and evolving consumer demand patterns. The sector itself has experienced mixed performance, with some large-cap names showing resilience while smaller players struggle amid inflationary costs and supply chain disruptions. Eureka Forbes’ technical weakness may partly reflect these broader sectoral challenges, compounded by company-specific factors.

Given the stock’s technical profile and relative underperformance, investors may consider alternative opportunities within the sector or broader market that demonstrate stronger momentum and fundamental support.

Investor Takeaway and Outlook

In summary, Eureka Forbes Ltd is currently navigating a challenging technical environment. The shift from a sideways to a mildly bearish trend, supported by bearish MACD and Bollinger Bands on weekly and monthly charts, signals caution. The absence of strong RSI signals suggests the stock is not yet oversold, leaving room for further downside. Meanwhile, daily moving averages offer limited short-term support, but this is insufficient to offset the broader negative momentum.

Investors should monitor key support levels near the recent lows of ₹451.60 and watch for any reversal signals in momentum indicators before considering fresh entries. The downgrade to a Sell rating and the stock’s underperformance relative to the Sensex reinforce the need for prudence. Those holding positions may consider tightening stop-losses or reducing exposure, while prospective buyers might await clearer signs of technical recovery.

Overall, Eureka Forbes’ current technical profile suggests a cautious stance, with the potential for further downside pressure unless positive catalysts emerge to reverse the prevailing bearish momentum.

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