Faze Three Ltd Sees Technical Momentum Shift Amid Mixed Market Signals

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Faze Three Ltd, a key player in the Garments & Apparels sector, has experienced a notable shift in price momentum, reflected in a 20.00% surge in its share price to ₹438.00 on 4 Feb 2026. Despite this sharp rise, technical indicators present a complex picture, with a blend of bearish and mildly bullish signals across weekly and monthly timeframes, prompting a cautious outlook for investors.
Faze Three Ltd Sees Technical Momentum Shift Amid Mixed Market Signals

Price Momentum and Market Performance

The stock’s current price of ₹438.00 marks a significant jump from the previous close of ₹365.00, representing a robust intraday gain of 20.00%. This surge brings the stock closer to its 52-week high of ₹747.00, though it remains well above its 52-week low of ₹318.00. Over various time horizons, Faze Three Ltd has outperformed the broader Sensex benchmark, delivering a 10.94% return over the past week compared to Sensex’s 2.30%, and a remarkable 646.17% return over five years versus Sensex’s 66.63%. The decade-long return is even more striking at 2,223.61%, dwarfing the Sensex’s 245.70% gain.

Technical Trend Shift: From Bearish to Mildly Bearish

Recent technical analysis reveals a subtle shift in the stock’s trend. The overall technical trend has moved from a clearly bearish stance to a mildly bearish one. This nuanced change suggests that while downward pressures remain, there is emerging resilience in the price action. The daily moving averages, a key short-term trend indicator, currently signal a mildly bearish outlook, indicating that the stock is still facing some resistance but may be stabilising.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed scenario. On a weekly basis, the MACD remains bearish, signalling that momentum is still tilted towards sellers in the short term. However, the monthly MACD has improved to a mildly bearish stance, hinting at a potential easing of downward momentum over a longer horizon. This divergence between weekly and monthly MACD readings suggests that while short-term caution is warranted, the medium-term outlook may be stabilising.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI), a momentum oscillator, currently shows no definitive signal on both weekly and monthly charts. This neutral RSI reading implies that the stock is neither overbought nor oversold, leaving room for price movement in either direction. Meanwhile, Bollinger Bands, which measure volatility and price levels relative to moving averages, indicate a mildly bearish stance on both weekly and monthly timeframes. This suggests that price volatility remains somewhat subdued but with a slight downward bias.

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Moving Averages and KST Indicator

Daily moving averages continue to reflect a mildly bearish trend, indicating that short-term price momentum is still under pressure. However, the Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change indicators to gauge momentum, shows a bearish signal on the weekly chart but a bullish signal on the monthly chart. This divergence suggests that while the immediate momentum may be weak, the longer-term momentum is improving, potentially signalling a turnaround if confirmed by other indicators.

Dow Theory and On-Balance Volume (OBV) Insights

According to Dow Theory, the weekly trend is mildly bullish, indicating some confidence among market participants in the short term. Conversely, the monthly Dow Theory trend remains mildly bearish, reflecting caution over the longer term. On-Balance Volume (OBV), which measures buying and selling pressure, is mildly bullish on the weekly timeframe but shows no clear trend monthly. This mixed volume pattern suggests that while there is some accumulation in the short term, it is not yet strong enough to confirm a sustained uptrend.

Mojo Score and Market Capitalisation Grade

Faze Three Ltd currently holds a Mojo Score of 28.0, categorised as a Strong Sell, an upgrade from its previous Sell rating as of 2 Feb 2026. This score reflects the company’s technical and fundamental challenges despite recent price gains. The Market Cap Grade stands at 4, indicating a mid-tier market capitalisation relative to peers in the Garments & Apparels sector. Investors should weigh these ratings carefully alongside technical signals before making investment decisions.

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Comparative Returns Highlight Long-Term Outperformance

Despite the mixed technical signals, Faze Three Ltd’s long-term returns have been exceptional. Over the past three years, the stock has delivered a 53.09% return compared to the Sensex’s 37.63%. The one-year return of 12.76% also surpasses the Sensex’s 8.49%. These figures underscore the company’s ability to generate value over extended periods, although recent technical indicators suggest that investors should remain vigilant for potential volatility in the near term.

Investor Takeaway

Faze Three Ltd’s recent price momentum shift and technical indicator readings present a nuanced outlook. The stock’s strong intraday gain and long-term outperformance are tempered by mixed signals from MACD, RSI, Bollinger Bands, and moving averages. The divergence between weekly and monthly indicators highlights the importance of considering multiple timeframes when analysing momentum and trend strength.

Investors should approach the stock with caution, recognising the mildly bearish technical trend and the Strong Sell Mojo Grade. However, the mildly bullish signals on longer-term momentum indicators such as KST and Dow Theory weekly trends suggest that a potential recovery could be on the horizon if confirmed by sustained volume and price action.

In summary, while Faze Three Ltd shows signs of stabilising after a period of bearishness, the technical landscape remains complex. A balanced approach, combining technical analysis with fundamental assessment and peer comparison, is advisable for those considering exposure to this Garments & Apparels sector stock.

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