Eureka Forbes Ltd Technical Momentum Shifts Amid Sideways Trend

Technical Trend Overview

The stock’s technical trend has softened from mildly bullish to sideways, reflecting a period of consolidation after recent gains. The current price stands at ₹541.00, slightly down from the previous close of ₹542.75. The 52-week range remains broad, with a high of ₹668.50 and a low of ₹451.60, indicating significant volatility over the past year.

Daily moving averages continue to show a mildly bullish bias, suggesting some underlying strength in the short term. However, weekly and monthly indicators paint a more cautious picture, with several oscillators signalling potential weakness or indecision.

MACD Signals: Bearish Momentum on Weekly and Monthly Charts

The Moving Average Convergence Divergence (MACD) indicator is a critical momentum gauge. On the weekly chart, MACD has turned bearish, signalling that the recent upward momentum is waning. The monthly MACD remains mildly bearish, reinforcing the notion that the stock may face resistance in sustaining gains over a longer horizon.

This bearish MACD alignment suggests that sellers are gaining ground, and investors should be wary of potential downward pressure in the coming weeks.

RSI Indicates Neutral Momentum

The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no clear signal, hovering in a neutral zone. This lack of directional momentum implies that the stock is neither overbought nor oversold, consistent with the sideways trend observed in price action.

Such RSI neutrality often precedes a breakout or breakdown, making it essential for traders to monitor for any shifts beyond the typical 30-70 RSI range.

Bollinger Bands and Volatility

Bollinger Bands on the weekly chart have turned bearish, indicating increased volatility and a potential move towards the lower band. Conversely, the monthly Bollinger Bands remain sideways, reflecting a period of price consolidation without a clear directional bias.

This divergence between weekly and monthly volatility measures suggests that short-term traders may experience more pronounced price swings, while longer-term investors might expect a period of range-bound trading.

Moving Averages: Mildly Bullish Daily Outlook

Daily moving averages continue to provide a mildly bullish signal, with the stock price hovering just above key short-term averages. This suggests that despite the broader sideways trend, there remains some buying interest at lower levels, potentially supporting a near-term rebound.

However, the lack of confirmation from weekly and monthly moving averages tempers enthusiasm, indicating that any rally may be limited unless accompanied by stronger volume and momentum.

KST and Dow Theory: Mixed Signals

The Know Sure Thing (KST) indicator presents a mixed picture. On the weekly timeframe, it is mildly bearish, aligning with the MACD’s cautionary stance. Conversely, the monthly KST remains bullish, hinting at underlying strength over a longer period.

Dow Theory analysis echoes this ambivalence. The weekly trend is mildly bearish, while the monthly trend shows no clear direction. This divergence underscores the stock’s current indecision and the potential for volatility as market participants await clearer signals.

On-Balance Volume (OBV) and Volume Trends

OBV readings on both weekly and monthly charts show no discernible trend, indicating that volume is not confirming price movements. This lack of volume support suggests that recent price changes may lack conviction, increasing the risk of false breakouts or breakdowns.

Price Performance Relative to Sensex

Examining Eureka Forbes Ltd’s returns relative to the Sensex reveals a mixed performance. Over the past week, the stock outperformed the benchmark with a 3.11% gain versus the Sensex’s 1.00% decline. However, over the last month and year-to-date periods, the stock has underperformed significantly, falling 11.12% and 12.35% respectively, compared to Sensex declines of 4.67% and 5.28%.

Longer-term returns over one and three years show modest gains of 3.44% and 4.95%, but these lag the Sensex’s 5.16% and 35.67% returns, highlighting the stock’s relative underperformance in a broader market context.

Market Capitalisation and Mojo Ratings

Eureka Forbes holds a Market Cap Grade of 3, reflecting its mid-tier capitalisation status within the Electronics & Appliances sector. The company’s Mojo Score currently stands at 54.0, with a Mojo Grade downgraded from Buy to Hold as of 24 Nov 2025. This downgrade reflects the recent technical deterioration and cautious outlook from MarketsMOJO analysts.

The Hold rating suggests investors should adopt a wait-and-watch approach, considering the mixed technical signals and relative underperformance against the benchmark.

Investor Takeaway and Outlook

The technical landscape for Eureka Forbes Ltd is currently characterised by a transition from mild bullishness to a sideways consolidation phase. Key momentum indicators such as MACD and KST on weekly charts have turned bearish, while monthly indicators remain mixed or neutral. The absence of strong volume confirmation and neutral RSI readings further complicate the outlook.

From a price perspective, the stock’s recent underperformance relative to the Sensex over medium-term periods suggests caution. The downgrade to a Hold rating by MarketsMOJO reflects this tempered sentiment, signalling that investors should monitor for clearer directional cues before committing fresh capital.

Short-term traders may find opportunities in the mild daily bullishness and potential volatility indicated by weekly Bollinger Bands, but longer-term investors should remain patient and watch for a sustained breakout above resistance levels or a confirmed trend reversal.

Overall, Eureka Forbes Ltd’s technical profile suggests a period of consolidation and uncertainty, with the potential for either a renewed uptrend or a deeper correction depending on forthcoming market developments and sector dynamics.

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