Goodyear India Ltd Sees Technical Momentum Shift Amid Mixed Market Signals

Price Momentum and Recent Market Performance

On 9 February 2026, Goodyear India Ltd closed at ₹843.70, marking a significant day change of 6.39% from the previous close of ₹793.05. The stock’s intraday range was wide, with a low of ₹830.00 and a high of ₹920.00, indicating heightened volatility and buying interest. However, the current price remains well below its 52-week high of ₹1,071.00, underscoring the challenges the stock faces in regaining its previous strength.

When compared to the broader market, Goodyear India’s returns have been underwhelming over longer time horizons. While the Sensex has delivered a 7.07% gain over the past year and an impressive 239.52% over the last decade, Goodyear India has declined by 9.53% and 69.69% respectively over the same periods. This divergence highlights sector-specific pressures and company-level challenges that have weighed on investor sentiment.

Technical Indicators: A Mixed Bag

The technical landscape for Goodyear India is nuanced. The Moving Average Convergence Divergence (MACD) remains bearish on both weekly and monthly charts, signalling that downward momentum still dominates. The Relative Strength Index (RSI), however, is neutral on both timeframes, offering no clear directional bias. This suggests that while the stock is not currently oversold or overbought, it lacks strong momentum to push decisively higher.

Bollinger Bands on weekly and monthly charts indicate a mildly bearish stance, reflecting price consolidation near the lower band, which often precedes either a breakout or further downside. Daily moving averages also align with a mildly bearish trend, reinforcing the cautious tone among technical traders.

Interestingly, the Know Sure Thing (KST) indicator presents a divergence: bearish on the weekly timeframe but mildly bullish on the monthly. This split suggests that while short-term momentum remains weak, there could be emerging strength over a longer horizon. Dow Theory analysis adds to the complexity, showing no clear trend weekly but a mildly bearish outlook monthly.

On-Balance Volume and Market Sentiment

While On-Balance Volume (OBV) data for Goodyear India is not explicitly available for weekly and monthly periods, the recent price surge accompanied by increased volume suggests accumulation by investors. This volume-price relationship is crucial for confirming the sustainability of any upward move. However, the absence of a clear OBV trend tempers enthusiasm, indicating that volume support may not yet be robust enough to confirm a sustained rally.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Goodyear India a Mojo Score of 43.0, categorising it with a 'Sell' grade as of 16 December 2025, an upgrade from a previous 'Strong Sell'. This improvement reflects a slight easing in negative sentiment but still signals caution for investors. The Market Cap Grade stands at 3, indicating a mid-tier valuation relative to peers in the Tyres & Rubber Products sector.

The technical trend has shifted from outright bearish to mildly bearish, signalling that while the worst may be behind, the stock has yet to establish a convincing uptrend. Investors should note that the sector itself has been under pressure, with cyclical headwinds and raw material cost volatility impacting profitability.

Long-Term Performance and Sector Context

Over the past five years, Goodyear India has declined by 13.04%, contrasting sharply with the Sensex’s 64.75% gain. The three-year performance is even more stark, with a 20.21% loss against a 38.13% rise in the benchmark. These figures underscore the challenges faced by the company in a competitive and capital-intensive industry.

Despite these headwinds, the stock’s recent weekly return of 7.16% outpaces the Sensex’s 1.59%, suggesting some short-term recovery potential. The one-month return is modestly positive at 0.61%, while the year-to-date return remains slightly negative at -0.58%. This pattern indicates a tentative stabilisation, though investors should remain vigilant for confirmation of a sustained turnaround.

Investor Takeaway and Outlook

Goodyear India Ltd’s technical parameters reveal a stock at a crossroads. The shift from bearish to mildly bearish technical trends, combined with mixed signals from MACD, RSI, and moving averages, suggests that while downside risks have moderated, upside momentum remains limited. The divergence in KST readings between weekly and monthly charts further emphasises the need for investors to adopt a cautious stance.

Given the stock’s underperformance relative to the Sensex and sector peers over multiple timeframes, investors should weigh the potential for recovery against the structural challenges facing the tyre and rubber products industry. The recent price rally and improved Mojo Grade indicate some positive developments, but the overall technical and fundamental picture calls for prudence.

For those considering exposure to Goodyear India, monitoring key technical levels such as the ₹920 intraday high and the 52-week low of ₹764 will be critical. A sustained break above recent highs accompanied by volume confirmation could signal a more robust recovery. Conversely, failure to hold above daily moving averages may invite renewed selling pressure.

Conclusion

In summary, Goodyear India Ltd is exhibiting signs of stabilisation after a prolonged period of weakness, but the technical indicators paint a cautious picture. The stock’s mildly bearish trend and mixed momentum signals suggest that investors should remain vigilant and consider alternative opportunities within the sector or broader market. The company’s performance relative to the Sensex and its peers underscores the importance of a disciplined approach to portfolio allocation in this space.

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