Technical Trend Overview and Price Movement
Everest Kanto’s current price stands at ₹118.35, up from the previous close of ₹113.55, marking a notable 4.23% increase on the day. The stock traded within a range of ₹112.10 to ₹118.90, still well below its 52-week high of ₹163.60 but comfortably above the 52-week low of ₹97.00. The technical trend has shifted from a strongly bearish stance to a mildly bearish one, indicating some easing of downward pressure but no definitive reversal yet.
The daily moving averages remain mildly bearish, signalling that short-term momentum is still under pressure. However, the weekly Dow Theory indicator has turned mildly bullish, suggesting that some underlying strength may be emerging in the medium term. This divergence between short-term and medium-term signals warrants close monitoring by investors.
MACD and RSI: Divergent Signals
The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly charts, reflecting persistent downward momentum. The weekly MACD histogram continues to show negative values, indicating that the stock’s short-term momentum is lagging its longer-term trend. This bearish MACD stance aligns with the mildly bearish moving averages and Bollinger Bands observed on the weekly and monthly timeframes.
Conversely, the Relative Strength Index (RSI) presents a more nuanced picture. While the weekly RSI does not currently generate a clear signal, the monthly RSI has turned bullish. This suggests that on a longer-term basis, the stock may be gaining some buying interest and could be approaching oversold conditions that often precede a rebound. The monthly RSI’s bullish signal contrasts with the bearish MACD, highlighting the mixed technical environment.
Bollinger Bands and KST Indicator Analysis
Bollinger Bands on both weekly and monthly charts remain mildly bearish, indicating that price volatility is still skewed towards the downside. The stock price is trading near the lower band on the weekly chart, which often acts as a support level but also signals caution as the price may be vulnerable to further declines if this support fails.
The Know Sure Thing (KST) indicator, a momentum oscillator, remains bearish on both weekly and monthly timeframes. This reinforces the view that despite some short-term price gains, the broader momentum remains subdued. The KST’s bearish readings suggest that any rallies may be limited or short-lived unless accompanied by stronger volume and confirmation from other indicators.
Volume and On-Balance Volume (OBV) Insights
On-Balance Volume (OBV) does not currently show any clear trend on either weekly or monthly charts. The lack of directional movement in OBV indicates that volume is not strongly confirming price moves, which can be a warning sign for investors. Without volume support, price gains may lack sustainability, and the stock could be susceptible to reversals.
Comparative Returns and Market Context
When analysing Everest Kanto’s returns relative to the broader market, the stock has outperformed the Sensex over several periods despite recent setbacks. Over the past week, Everest Kanto delivered an 8.63% return compared to the Sensex’s 1.59%, and over the past month, it gained 1.89% while the Sensex declined by 1.74%. Year-to-date, the stock is up 1.63% against a Sensex decline of 1.92%.
However, over the one-year horizon, Everest Kanto has underperformed significantly, with a negative return of 25.82% compared to the Sensex’s 7.07% gain. Longer-term performance remains robust, with three-year and five-year returns of 39.07% and 95.14% respectively, both exceeding the Sensex’s corresponding returns of 38.13% and 64.75%. The ten-year return is particularly impressive at 584.10%, dwarfing the Sensex’s 239.52% gain, underscoring the company’s strong historical growth trajectory despite recent volatility.
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Mojo Score and Ratings Update
MarketsMOJO’s latest assessment assigns Everest Kanto a Mojo Score of 28.0, categorising it as a Strong Sell. This represents a downgrade from the previous Sell rating issued on 17 Nov 2025. The Market Cap Grade remains low at 3, reflecting the company’s relatively modest market capitalisation within the industrial manufacturing sector.
The downgrade to Strong Sell is consistent with the mixed technical signals and the bearish momentum indicators observed. Investors are advised to exercise caution, as the technical environment suggests limited upside potential in the near term without a clear catalyst for trend reversal.
Strategic Implications for Investors
Given the mildly bearish technical trend and the divergence between short-term and monthly indicators, investors should consider a cautious approach. The bullish monthly RSI hints at a possible medium-term recovery, but the persistent bearish MACD and KST indicators, combined with weak volume confirmation, suggest that any rally may be fragile.
Investors holding Everest Kanto shares may want to monitor key support levels near ₹112 and resistance around ₹119 to ₹120. A sustained break above the daily moving averages and monthly Bollinger Band midline could signal a more robust recovery. Conversely, a failure to hold current support levels may lead to further downside pressure.
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Conclusion: Navigating a Complex Technical Landscape
Everest Kanto Cylinder Ltd’s recent technical parameter changes reveal a stock caught between bearish momentum and tentative signs of recovery. While the daily and weekly indicators predominantly signal caution, the monthly RSI’s bullish stance offers a glimmer of hope for medium-term investors. The company’s strong long-term returns relative to the Sensex provide a foundation of confidence, but the current technical environment advises prudence.
Investors should closely track the evolution of key technical indicators, particularly MACD and moving averages, alongside volume trends, to gauge the sustainability of any price advances. Until clearer confirmation emerges, a conservative stance aligned with the Strong Sell Mojo Grade remains appropriate.
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