Finolex Cables Ltd. Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview and Price Movement

Finolex Cables Ltd. (Stock ID: 577677), currently priced at ₹767.50, has shown a positive intraday range on 9 Feb 2026, with a high of ₹774.35 and a low of ₹746.75. This marks a significant recovery from the previous close of ₹745.35, representing a daily gain of 2.97%. However, the stock remains well below its 52-week high of ₹1,059.05, while comfortably above its 52-week low of ₹701.00.

The technical trend has shifted from bearish to mildly bearish, signalling a tentative improvement in price momentum but still reflecting underlying caution. This nuanced stance is supported by a blend of weekly and monthly technical indicators that paint a mixed picture of the stock’s near- and medium-term prospects.

MACD and Momentum Oscillators: Divergent Signals

The Moving Average Convergence Divergence (MACD) indicator offers a split view. On a weekly basis, the MACD is mildly bullish, suggesting that short-term momentum is gaining strength. This is corroborated by the KST (Know Sure Thing) indicator, which also shows a mildly bullish weekly signal. These indicators imply that the stock could be entering a phase of upward momentum, potentially attracting short-term traders.

Conversely, the monthly MACD remains bearish, indicating that the longer-term trend has yet to confirm a sustained recovery. The monthly KST aligns with this bearish outlook, reinforcing the notion that the stock’s broader trend remains under pressure. Investors should be wary of this divergence, as short-term gains may be tempered by longer-term headwinds.

RSI and Bollinger Bands: Neutral to Bearish Signals

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in a neutral zone. This suggests that the stock is neither overbought nor oversold, leaving room for either upward or downward movement depending on market catalysts.

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 constrained, but the stock is closer to the lower band, hinting at potential downside risk if momentum fails to build.

Moving Averages and Volume-Based Indicators

Daily moving averages for Finolex Cables are mildly bearish, reflecting that the stock price is trading near or slightly below key short-term averages. This technical setup often signals a cautious market sentiment, where investors await clearer directional cues before committing to significant positions.

On the volume front, the On-Balance Volume (OBV) indicator is mildly bearish on a weekly basis and shows no clear trend monthly. This suggests that volume does not strongly support the recent price gains, which could limit the sustainability of the current rally.

Comparative Performance: Finolex Cables vs Sensex

When analysing returns relative to the benchmark Sensex, Finolex Cables has delivered a mixed performance over various time horizons. Over the past week, the stock outperformed the Sensex with a 6.37% gain compared to the index’s 1.59%. This short-term strength aligns with the mildly bullish weekly MACD and KST indicators.

However, over the one-month period, the stock declined by 1.84%, marginally worse than the Sensex’s 1.74% fall. Year-to-date returns show a modest 2.39% gain for Finolex Cables, outperforming the Sensex’s negative 1.92%. Yet, the one-year return remains a significant laggard at -21.64%, contrasting sharply with the Sensex’s 7.07% gain.

Longer-term performance is more favourable, with three- and five-year returns of 40.14% and 106.23% respectively, slightly ahead of the Sensex’s 38.13% and 64.75%. Over a decade, the stock’s 239.23% return closely mirrors the Sensex’s 239.52%, indicating strong historical growth despite recent volatility.

Mojo Score and Grade Upgrade Reflect Cautious Optimism

MarketsMOJO’s latest assessment upgraded Finolex Cables from a Sell to a Hold rating on 1 Feb 2026, reflecting the evolving technical landscape. The current Mojo Score stands at 50.0, signalling a neutral stance that balances recent positive momentum against lingering bearish pressures. The Market Cap Grade remains at 3, indicating a mid-tier valuation within its sector.

This upgrade suggests that while the stock is not yet a clear buy, it has improved sufficiently to warrant attention from investors seeking exposure to the cables electrical sector without excessive risk.

Sector Context and Outlook

Finolex Cables operates within the Cables - Electricals industry, a sector sensitive to infrastructure spending, industrial demand, and commodity price fluctuations. The sector’s technical indicators often mirror broader economic cycles, and Finolex’s mixed signals may reflect ongoing uncertainty in these areas.

Investors should monitor key technical levels, including the 52-week high of ₹1,059.05 and the recent support near ₹701.00, to gauge potential breakout or breakdown scenarios. A sustained move above the daily moving averages and confirmation from monthly MACD would be required to signal a more robust uptrend.

Investor Takeaway

Finolex Cables Ltd.’s recent technical parameter changes highlight a stock in transition. The mildly bullish weekly MACD and KST indicators offer hope for a short-term recovery, while the monthly bearish signals counsel caution. The neutral RSI and mildly bearish Bollinger Bands further underscore the stock’s current indecision.

Investors should weigh these mixed signals carefully, considering the stock’s relative outperformance over the past week and year-to-date against its longer-term underperformance and sector dynamics. The upgrade to a Hold rating by MarketsMOJO reflects this balanced view, suggesting that Finolex Cables may be suitable for investors with a moderate risk appetite seeking exposure to the cables electrical sector.

Close monitoring of price action around key moving averages and volume trends will be critical in the coming weeks to confirm whether the stock can sustain its recent momentum or revert to a more bearish trajectory.

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