Faze Three Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview and Price Movement

Faze Three Ltd’s share price closed at ₹383.45 on 29 Jan 2026, down from the previous close of ₹394.80. The intraday range saw a high of ₹403.90 and a low of ₹379.05, indicating some volatility within the session. The stock remains significantly below its 52-week high of ₹747.00 but comfortably above its 52-week low of ₹318.00, suggesting a wide trading band over the past year.

The technical trend has shifted from a bearish to a mildly bearish stance, signalling a potential easing of downward pressure. However, daily moving averages remain bearish, indicating that short-term momentum is still weak. This divergence between trend assessments across timeframes highlights the transitional phase the stock is currently undergoing.

MACD and RSI Signals

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart, reflecting continued downward momentum in the medium term. On the monthly chart, however, the MACD is mildly bearish, suggesting that longer-term selling pressure may be moderating. This nuanced view implies that while the stock has been under pressure, the intensity of bearish momentum is lessening over extended periods.

The Relative Strength Index (RSI) shows no clear signal on both weekly and monthly charts, hovering in a neutral zone. This absence of an overbought or oversold condition indicates that the stock is not currently exhibiting extreme momentum in either direction, which could imply consolidation or indecision among traders.

Bollinger Bands and Moving Averages

Bollinger Bands present a mildly bearish signal on the weekly timeframe and a bearish signal on the monthly timeframe. This suggests that price volatility remains elevated, with the stock price tending towards the lower band, a typical bearish characteristic. The daily moving averages reinforce this view, remaining bearish and indicating that the short-term trend is still downward.

KST and Dow Theory Analysis

The Know Sure Thing (KST) indicator offers a mixed perspective: bearish on the weekly chart but bullish on the monthly chart. This divergence suggests that while short-term momentum remains weak, longer-term momentum may be improving. Dow Theory assessments align with this, showing no clear trend on the weekly chart but a mildly bearish trend on the monthly chart, reinforcing the notion of a gradual shift rather than a decisive reversal.

On-Balance Volume (OBV) and Market Sentiment

On-Balance Volume (OBV) readings are mildly bullish on both weekly and monthly charts, indicating that volume flow is slightly favouring buyers despite the price weakness. This could be an early sign of accumulation, where investors are gradually entering positions in anticipation of a turnaround.

Comparative Performance Against Sensex

Faze Three Ltd’s returns relative to the Sensex reveal a mixed performance over various time horizons. Over the past week, the stock outperformed the Sensex significantly, delivering a 7.54% gain compared to the benchmark’s 0.53%. However, over the last month, the stock declined by 12.29%, underperforming the Sensex’s 3.17% drop. Year-to-date returns also show underperformance, with Faze Three down 7.55% versus the Sensex’s 3.37% fall.

Longer-term returns paint a more favourable picture. Over one year, the stock gained 3.01%, though this lags the Sensex’s 8.49% rise. Over three years, Faze Three’s 35.49% return is close to the Sensex’s 38.79%, while over five years, the stock has dramatically outperformed with a 604.22% gain compared to the Sensex’s 75.67%. The ten-year return is even more striking, with Faze Three delivering a staggering 2084.90% gain against the Sensex’s 236.52%, underscoring the company’s strong long-term growth trajectory despite recent volatility.

Mojo Score and Ratings Update

MarketsMOJO’s latest assessment assigns Faze Three Ltd a Mojo Score of 31.0, categorising it as a Sell. This represents an upgrade from the previous Strong Sell grade, which was revised on 28 Jan 2026. The Market Cap Grade stands at 4, reflecting moderate market capitalisation relative to peers. The upgrade in rating suggests some improvement in fundamentals or technical outlook, though the overall sentiment remains cautious.

Investors should note that the current technical indicators and ratings imply a stock in transition, with potential for stabilisation but still facing headwinds. The mixed signals from MACD, KST, and OBV highlight the importance of monitoring momentum shifts closely before committing to new positions.

Investor Takeaway and Outlook

Faze Three Ltd’s current technical landscape suggests a stock that is attempting to find footing after a period of bearish momentum. The shift from strong to mild bearishness, combined with neutral RSI readings and mildly bullish volume indicators, points to a potential base formation. However, the persistence of bearish moving averages and Bollinger Band signals advises caution.

Investors should weigh the stock’s impressive long-term returns against its recent volatility and technical uncertainty. The garment and apparel sector’s cyclical nature and external factors such as raw material costs and consumer demand will also influence future price action.

Given the mixed technical signals, a prudent approach would be to monitor key support levels near ₹380 and resistance around ₹405, alongside volume trends and broader market cues. A confirmed breakout above the daily moving averages and a positive MACD crossover on weekly charts could signal a more sustained recovery.

Conversely, a failure to hold current support levels may lead to renewed selling pressure, especially if accompanied by weakening OBV and deteriorating momentum indicators.

Summary

In summary, Faze Three Ltd is navigating a complex technical environment with signs of stabilisation amid lingering bearish pressures. The stock’s recent downgrade to a Sell rating from Strong Sell reflects this nuanced outlook. While long-term fundamentals remain robust, short- and medium-term technicals counsel caution. Investors should remain vigilant for confirmation of trend reversals before increasing exposure.

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