Technical Momentum and Indicator Overview
The stock currently trades at ₹522.50, up from the previous close of ₹515.10, with intraday highs reaching ₹526.95 and lows at ₹506.00. This price action comes against a 52-week range of ₹451.60 to ₹668.50, indicating that while the stock has rebounded from its lows, it remains well below its annual peak.
Examining the Moving Average Convergence Divergence (MACD) reveals a predominantly bearish outlook on the weekly and monthly charts. The weekly MACD remains bearish, signalling downward momentum, while the monthly MACD is mildly bearish, suggesting some easing of selling pressure but no definitive reversal. This divergence between timeframes highlights the stock’s struggle to establish a sustained uptrend.
The Relative Strength Index (RSI), a momentum oscillator, currently offers no clear signal on either the weekly or monthly charts. This neutral RSI reading suggests that the stock is neither overbought nor oversold, reinforcing the sideways technical trend observed recently.
Bollinger Bands, which measure volatility and price levels relative to moving averages, present a mildly bearish stance on the weekly chart and a more pronounced bearish signal on the monthly chart. This indicates that price volatility remains subdued but with a downward bias over the longer term.
Daily moving averages, however, provide a mildly bullish signal, reflecting short-term price strength. This contrast between daily and longer-term indicators suggests that while short-term traders may find opportunities, the broader trend remains uncertain.
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Additional Technical Signals and Trend Analysis
The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change calculations, shows a mildly bearish trend on the weekly chart but a bullish signal on the monthly timeframe. This mixed reading suggests that while short-term momentum is weakening, longer-term momentum may be improving, adding to the sideways price action narrative.
Dow Theory analysis reveals no clear trend on the weekly chart and a mildly bearish trend on the monthly chart. This lack of a definitive trend aligns with the overall technical ambiguity surrounding Eureka Forbes Ltd.
On-Balance Volume (OBV), a volume-based indicator that helps confirm price trends, shows no trend on the weekly chart and a mildly bearish trend on the monthly chart. This suggests that volume is not strongly supporting price advances, which may limit the sustainability of any upward moves.
Comparative Performance and Market Context
When compared with the broader Sensex index, Eureka Forbes Ltd has underperformed significantly across multiple timeframes. Over the past week, the stock declined by 4.3%, while the Sensex gained 2.94%. The one-month return for the stock was a negative 9.87%, contrasting with a modest 0.59% gain for the Sensex. Year-to-date, the stock has fallen 15.35%, whereas the Sensex is down only 1.36%. Over the past year, Eureka Forbes Ltd declined 4.41%, while the Sensex rose 7.97%. Even over a three-year horizon, the stock’s 12% return pales in comparison to the Sensex’s robust 38.25% gain.
This relative underperformance highlights the challenges facing the company and its sector, Electronics & Appliances, which has been grappling with competitive pressures and shifting consumer preferences.
Valuation and Market Capitalisation Insights
Eureka Forbes Ltd holds a Market Cap Grade of 3, indicating a mid-tier market capitalisation relative to its peers. The company’s Mojo Score currently stands at 45.0, with a Mojo Grade of Sell, downgraded from Hold on 24 Nov 2025. This downgrade reflects the deteriorating technical and fundamental outlook, signalling caution for investors.
The downgrade is consistent with the mixed technical signals and the stock’s underwhelming price performance relative to the benchmark index. Investors should weigh these factors carefully when considering exposure to the stock.
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Outlook and Investor Considerations
Given the current technical landscape, Eureka Forbes Ltd appears to be in a consolidation phase with no clear directional bias. The mildly bullish daily moving averages offer some short-term optimism, but the prevailing weekly and monthly bearish signals caution against aggressive positioning.
Investors should monitor key technical levels, including the 52-week low of ₹451.60 and the resistance near ₹668.50, to gauge potential breakout or breakdown scenarios. A sustained move above the upper Bollinger Band or a bullish crossover in the MACD could signal a reversal, while failure to hold above recent support levels may lead to further declines.
Fundamental factors, including sector dynamics and company-specific developments, should also be considered alongside technical analysis to form a comprehensive investment thesis.
Summary
Eureka Forbes Ltd’s technical parameters have shifted from mildly bearish to a sideways trend, reflecting a complex and mixed set of signals from momentum and trend indicators. While short-term moving averages suggest mild bullishness, longer-term indicators such as MACD, Bollinger Bands, and Dow Theory remain cautious or bearish. The stock’s underperformance relative to the Sensex and its recent downgrade to a Sell rating underscore the need for prudence among investors. Monitoring evolving technical signals and broader market conditions will be critical in assessing future price momentum.
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