Forbes Precision Tools & Machine Parts Ltd Faces Bearish Technical Shift Amid Mixed Returns

Technical Trend Overview and Momentum Shift

The stock’s technical trend has recently deteriorated from mildly bearish to outright bearish, reflecting growing downside pressure. The daily moving averages remain firmly bearish, indicating that short-term price action is under strain. The current price stands at ₹136.30, slightly above the previous close of ₹135.30, but well below its 52-week high of ₹235.90, underscoring the stock’s struggle to regain upward momentum.

Price volatility today ranged between ₹127.00 and ₹138.90, suggesting intraday uncertainty. The 52-week low of ₹123.00 remains a critical support level to watch, as a breach could accelerate selling pressure.

MACD and RSI: Mixed Signals

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bullish, hinting at some underlying positive momentum in the medium term. However, the monthly MACD data is inconclusive, offering no clear directional signal. This divergence between weekly and monthly MACD readings suggests that while short-term momentum may be stabilising, longer-term trends remain uncertain.

Relative Strength Index (RSI) readings on both weekly and monthly charts currently show no definitive signals, hovering in neutral zones. This lack of RSI extremes indicates the stock is neither overbought nor oversold, but also lacks strong directional conviction from momentum oscillators.

Bollinger Bands and KST Indicate Bearish Pressure

Bollinger Bands analysis reveals bearish tendencies on the weekly chart, with the stock price gravitating towards the lower band, signalling increased selling pressure. The monthly Bollinger Bands are mildly bearish, reinforcing the cautious outlook over a longer horizon.

The Know Sure Thing (KST) indicator, a momentum oscillator, confirms bearish sentiment on the weekly timeframe. This aligns with the broader technical downgrade and suggests that downward momentum may persist in the near term.

Dow Theory and On-Balance Volume (OBV) Insights

According to Dow Theory, the weekly trend is mildly bearish, reflecting a cautious market stance. The monthly Dow Theory trend remains without a clear direction, indicating indecision among longer-term investors.

On-Balance Volume (OBV) data is unavailable for both weekly and monthly periods, limiting volume-based confirmation of price trends. This absence of volume insight adds to the uncertainty surrounding the stock’s near-term trajectory.

Comparative Performance and Market Context

Examining Forbes Precision’s returns relative to the Sensex highlights a mixed performance over various timeframes. Over the past week, the stock declined by 3.2%, underperforming the Sensex’s 1.41% drop. However, over the last month, Forbes Precision posted a positive return of 3.06%, outperforming the Sensex’s negative 0.90% return.

Year-to-date, the stock has fallen 1.23%, though this is less severe than the Sensex’s 3.19% decline. Over the last year, the stock has significantly lagged, with an 18.16% loss compared to the Sensex’s robust 8.64% gain. Longer-term data for three, five, and ten years is unavailable for the stock, but the Sensex’s strong multi-year returns (35.24% over three years and 247.96% over ten years) underscore the challenges faced by Forbes Precision in keeping pace with broader market gains.

Mojo Score and Ratings Update

MarketsMOJO assigns Forbes Precision a Mojo Score of 31.0, reflecting a cautious stance. The Mojo Grade has been downgraded from Strong Sell to Sell as of 16 Feb 2026, signalling a deterioration in the stock’s overall quality and outlook. The Market Cap Grade stands at 4, indicating a relatively small market capitalisation that may contribute to higher volatility and liquidity concerns.

This downgrade aligns with the technical indicators’ bearish signals and the stock’s underwhelming price performance relative to the broader market.

Outlook and Investor Considerations

Investors should approach Forbes Precision with caution given the prevailing bearish technical trends and the recent downgrade in its Mojo Grade. The mixed signals from momentum indicators such as MACD and RSI suggest that while some short-term stabilisation may occur, the overall technical environment remains unfavourable.

Price action near the lower Bollinger Band and bearish KST readings reinforce the risk of further downside. The stock’s inability to sustain levels near its 52-week high and its underperformance relative to the Sensex over the past year highlight structural challenges within the industrial manufacturing sector and company-specific headwinds.

Technical Summary and Final Assessment

In summary, Forbes Precision Tools & Machine Parts Ltd is currently navigating a challenging technical landscape. The shift from mildly bearish to bearish trends across multiple indicators, including moving averages, Bollinger Bands, and KST, suggests that the stock is under sustained selling pressure. The absence of strong RSI or monthly MACD signals indicates a lack of clear momentum to reverse this trend in the near term.

Investors should weigh these technical factors alongside the company’s fundamental outlook and sector dynamics. Given the downgrade to a Sell rating and the stock’s relative underperformance, a cautious approach is warranted. Monitoring key support levels around ₹123.00 and any changes in volume or momentum indicators will be critical for assessing potential trend reversals.

For those seeking exposure to the industrial manufacturing sector, exploring alternative stocks with stronger technical and fundamental profiles may offer better risk-adjusted opportunities.

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