Key Events This Week
Feb 9: Technical momentum shift and valuation upgrade to “expensive” from “very expensive”
Feb 10-11: Modest price gains and consolidation amid mixed volume
Feb 12-13: Decline in stock price coinciding with Sensex weakness
Feb 13: Week closes at Rs.836.60 (-0.84%)
Monday, 9 February 2026: Technical Momentum Shift and Valuation Upgrade
Goodyear India Ltd began the week with a notable technical momentum shift, moving from a strongly bearish to a mildly bearish stance. The stock closed at Rs.855.60, gaining Rs.11.90 or 1.41%, outperforming the Sensex which rose 1.04% to 37,113.23. Intraday volatility was significant, with the stock reaching a high of Rs.920.00 before settling lower, reflecting mixed market sentiment.
Alongside this technical shift, valuation parameters improved modestly. The company’s price-to-earnings ratio eased to 34.34, down from previous levels, prompting a downgrade in valuation rating from “very expensive” to “expensive.” Despite this, the stock remains priced at a premium relative to sector peers such as Apollo Tyres and CEAT, whose P/E ratios are notably lower.
These developments contributed to a cautious optimism, supported by an upgrade in the Mojo Grade from Strong Sell to Sell, reflecting a marginally less negative outlook. However, key technical indicators such as MACD and KST remained bearish or mildly bearish, signalling that the stock had yet to establish a firm bullish trend.
Tuesday and Wednesday, 10-11 February 2026: Consolidation Amid Mixed Volume
The stock showed modest gains on Tuesday, closing at Rs.857.40 (+0.21%) on relatively lower volume of 7,296 shares, while the Sensex advanced 0.25%. On Wednesday, Goodyear India edged down slightly by 0.08% to Rs.856.75, with volume declining further to 4,420 shares. The Sensex continued its gradual ascent, gaining 0.13%.
This period reflected a consolidation phase, with the stock fluctuating near its short-term moving averages. Technical indicators such as the RSI remained neutral, indicating neither overbought nor oversold conditions. The stock’s price remained comfortably above its 52-week low of Rs.764.00 but well below the 52-week high of Rs.1,071.00, suggesting a tentative recovery without strong directional conviction.
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Thursday and Friday, 12-13 February 2026: Decline Amid Market Weakness
On Thursday, the stock declined by 0.93% to Rs.848.75 on volume of 3,795 shares, while the Sensex fell 0.56%. The downward pressure intensified on Friday, with Goodyear India closing at Rs.836.60, down 1.43% on thin volume of 2,261 shares. The Sensex also dropped sharply by 1.40% to 36,532.48.
This late-week sell-off reflected broader market weakness and a return of bearish momentum in the stock. Technical indicators such as the weekly MACD and KST remained bearish, and the stock traded near the lower Bollinger Band on the weekly chart, signalling elevated volatility and potential support testing.
The decline also underscored the challenges posed by the tyres and rubber products sector’s cyclical pressures, including raw material cost fluctuations and regulatory uncertainties. Despite the recent valuation improvement, the stock’s premium multiples and modest profitability metrics continue to weigh on investor sentiment.
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Daily Price Comparison: Goodyear India Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.855.60 | +1.41% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.857.40 | +0.21% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.856.75 | -0.08% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.848.75 | -0.93% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.836.60 | -1.43% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: The technical momentum shift from strongly bearish to mildly bearish and the upgrade in Mojo Grade from Strong Sell to Sell indicate a modest improvement in market sentiment. The stock’s outperformance relative to the Sensex on Monday and Tuesday suggests some short-term resilience. The valuation downgrade from “very expensive” to “expensive” reflects a slight easing in price multiples, which may attract selective interest.
Cautionary Signals: Despite the technical shift, key indicators such as MACD and KST remain bearish or mildly bearish, signalling ongoing downward momentum. The stock’s premium valuation relative to peers and modest profitability metrics (ROCE 10.34%, ROE 9.86%) limit upside potential. The late-week decline amid broader market weakness highlights vulnerability to sectoral and macroeconomic headwinds. Volume contraction during the week suggests reduced trading interest, which may exacerbate price volatility.
Conclusion
Goodyear India Ltd’s week was characterised by a nuanced technical and valuation transition amid a challenging sector backdrop. While the stock showed early strength and a modest upgrade in market perception, it ultimately closed the week lower, underperforming the Sensex. The mixed technical signals and elevated valuation multiples warrant a cautious stance, with investors advised to monitor upcoming earnings and sector developments closely. The stock’s ability to sustain above key moving averages and improve momentum indicators will be critical to reversing the current mildly bearish trend.
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