Goodyear India Ltd Faces Bearish Momentum Amid Technical Downturn

Technical Trend Shift and Price Movement

On 17 Feb 2026, Goodyear India’s share price closed at ₹823.35, down 1.58% from the previous close of ₹836.60. The stock traded within a range of ₹818.00 to ₹841.00 during the day, remaining well below its 52-week high of ₹1,071.00 and closer to its 52-week low of ₹764.00. This price action underscores the prevailing bearish sentiment among investors.

The technical trend has shifted from mildly bearish to outright bearish, signalling increased downside risk. This shift is corroborated by the daily moving averages, which currently indicate a bearish stance. The stock’s inability to sustain levels above key moving averages suggests that selling pressure remains dominant.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator, a widely used momentum oscillator, remains bearish on both weekly and monthly timeframes. The weekly MACD line continues to trade below its signal line, indicating sustained negative momentum. Similarly, the monthly MACD confirms this downtrend, reinforcing the stock’s weak technical posture.

Meanwhile, the KST (Know Sure Thing) indicator presents a mixed picture. While the weekly KST remains bearish, the monthly KST shows a mildly bullish signal. This divergence suggests that although short-term momentum is weak, there may be some underlying longer-term strength that investors should monitor cautiously.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This lack of directional momentum in RSI indicates that the stock is neither oversold nor overbought, leaving room for further downside or sideways movement.

Bollinger Bands, which measure volatility and price levels relative to moving averages, are bearish on the weekly chart and mildly bearish on the monthly chart. The stock price is trading near the lower band on the weekly timeframe, suggesting increased selling pressure and potential continuation of the downtrend.

On-Balance Volume and Dow Theory Signals

On-Balance Volume (OBV) data for Goodyear India is currently inconclusive, with no definitive signals on weekly or monthly charts. This absence of volume confirmation weakens the conviction behind price movements, suggesting that the recent declines may not be strongly supported by trading volume.

Dow Theory analysis presents a nuanced view: the weekly trend is mildly bullish, while the monthly trend is mildly bearish. This contrast indicates that while short-term price action may show some resilience, the longer-term outlook remains cautious, reflecting the broader technical deterioration.

Comparative Performance Versus Sensex

Goodyear India’s returns have lagged behind the benchmark Sensex across multiple time horizons. Over the past week, the stock declined by 3.77%, significantly underperforming the Sensex’s modest 0.94% fall. On a one-month basis, the stock was nearly flat with a -0.08% return, while the Sensex fell 0.35%, indicating relative weakness.

Year-to-date, Goodyear India’s stock has declined 2.98%, slightly worse than the Sensex’s 2.28% drop. Over the past year, the stock has fallen 6.12%, contrasting sharply with the Sensex’s robust 9.66% gain. Longer-term performance is even more concerning, with three-year and five-year returns at -21.36% and -14.50% respectively, compared to Sensex gains of 35.81% and 59.83%. Even over a decade, Goodyear India’s 74.25% return pales in comparison to the Sensex’s 259.08% growth.

This persistent underperformance highlights structural challenges facing the company and sector, compounded by the current bearish technical outlook.

Mojo Score and Rating Downgrade

MarketsMOJO’s proprietary Mojo Score for Goodyear India stands at 44.0, reflecting a Sell grade as of 16 Feb 2026, downgraded from a previous Hold rating. The downgrade is driven primarily by deteriorating technical indicators and weak price momentum. The company’s Market Cap Grade remains low at 3, indicating limited market capitalisation strength relative to peers.

Investors should note that the downgrade aligns with the technical trend shift and the bearish signals from MACD, moving averages, and Bollinger Bands. The combined effect suggests caution for those holding or considering exposure to this stock.

Sector and Industry Context

Operating within the Tyres & Rubber Products sector, Goodyear India faces competitive pressures and cyclical demand fluctuations. The sector’s performance is often tied to automotive industry trends and raw material cost volatility. The current technical weakness in Goodyear India may reflect broader sector challenges, including subdued demand and margin pressures.

Investors should weigh these sectoral headwinds alongside the company’s technical signals when assessing risk and potential entry points.

Outlook and Investor Considerations

Given the prevailing bearish technical indicators, including a negative MACD, bearish moving averages, and weak Bollinger Bands positioning, Goodyear India’s near-term price momentum appears subdued. The lack of strong volume confirmation and neutral RSI readings suggest limited immediate upside catalysts.

Longer-term investors may find some solace in the mildly bullish monthly KST and weekly Dow Theory signals, but these are insufficient to offset the dominant bearish trend. The stock’s consistent underperformance relative to the Sensex over multiple timeframes further emphasises the need for caution.

In summary, Goodyear India Ltd currently exhibits a technical profile that favours a cautious or defensive stance. Investors should monitor for any reversal in key indicators before considering renewed exposure.

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