Huhtamaki India Ltd Shows Signs of Mild Bullish Momentum Amid Mixed Technical Signals

Technical Trend Shift and Price Movement

Huhtamaki India’s current price stands at ₹211.50, up 2.00% from the previous close of ₹207.35, with intraday highs touching ₹212.00 and lows at ₹207.05. This movement reflects a modest recovery from the 52-week low of ₹170.40, although it remains well below the 52-week high of ₹284.90. The recent technical trend has transitioned from a sideways pattern to a mildly bullish one, signalling a potential change in investor sentiment.

On a relative basis, the stock has marginally outperformed the Sensex over the past week, delivering a 0.36% return compared to the benchmark’s -0.22%. However, over longer horizons, Huhtamaki India has underperformed significantly, with a one-year and year-to-date return of -21.88% against the Sensex’s 9.06% gain. This divergence highlights the stock’s recent struggles amid broader market strength.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On the weekly chart, the MACD remains bearish, indicating that short-term momentum is still subdued. Conversely, the monthly MACD has turned mildly bullish, suggesting that longer-term momentum may be improving. This divergence between weekly and monthly MACD readings implies that while short-term selling pressure persists, the stock could be laying the groundwork for a more sustained upward move.

RSI and Overbought/Oversold Conditions

The Relative Strength Index (RSI) on the weekly timeframe currently shows no definitive signal, hovering in a neutral zone that neither indicates overbought nor oversold conditions. However, the monthly RSI is bullish, reflecting strengthening momentum over a longer period. This monthly bullish RSI aligns with the mildly bullish MACD, reinforcing the possibility of a gradual recovery in price momentum.

Moving Averages and Bollinger Bands

Daily moving averages have turned mildly bullish, with short-term averages beginning to cross above longer-term averages, a classic signal of upward momentum. This technical development supports the recent price gains and suggests that the stock may continue to find support at current levels.

In contrast, Bollinger Bands present a mixed scenario. Weekly Bollinger Bands are mildly bearish, indicating some volatility and potential resistance in the near term, while monthly Bollinger Bands remain bearish, signalling that the stock is still trading near the lower end of its longer-term price range. This suggests caution, as volatility could increase and limit upside in the short term.

Other Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator remains bearish on both weekly and monthly charts, signalling that momentum is still under pressure and caution is warranted. This bearish KST contrasts with the mildly bullish Dow Theory signals on the weekly timeframe, which suggest some accumulation or positive price action in the short term. However, the monthly Dow Theory remains mildly bearish, indicating that the broader trend has yet to fully confirm a sustained uptrend.

On the volume front, the On-Balance Volume (OBV) indicator is mildly bullish weekly and bullish monthly, suggesting that buying volume is gradually increasing. This is a positive sign, as rising OBV often precedes price appreciation, indicating that institutional or informed investors may be accumulating shares.

Mojo Score and Rating Upgrade

MarketsMOJO has upgraded Huhtamaki India’s Mojo Grade from Sell to Hold as of 22 Dec 2025, reflecting the recent improvement in technical parameters and a more balanced risk-reward profile. The current Mojo Score stands at 67.0, which is moderate and consistent with a Hold rating. The Market Cap Grade is 3, indicating a mid-sized market capitalisation within the packaging sector.

This upgrade signals that while the stock is not yet a strong buy, it has moved out of a negative technical zone and may offer selective opportunities for investors with a medium-term horizon.

Comparative Performance and Sector Context

Huhtamaki India operates in the packaging industry, a sector that has faced headwinds due to rising input costs and supply chain disruptions. The stock’s underperformance relative to the Sensex over one, three, five, and ten-year periods highlights structural challenges. For instance, over five years, the stock has declined by 32.34%, while the Sensex has surged 78.47%. Even over a decade, Huhtamaki India’s return is negative at -11.76%, compared to the Sensex’s impressive 226.30% gain.

However, the recent mild bullish technical signals could indicate a potential inflection point, especially if sectoral conditions improve or company-specific catalysts emerge.

Investor Takeaway and Outlook

In summary, Huhtamaki India Ltd’s technical landscape is characterised by a cautious but discernible shift towards mild bullishness. The mixed signals from MACD, RSI, Bollinger Bands, and KST indicators suggest that while short-term momentum remains fragile, longer-term trends may be stabilising. The upgrade in Mojo Grade to Hold reflects this balanced outlook.

Investors should monitor key technical levels closely, particularly the daily moving averages and monthly MACD, for confirmation of a sustained uptrend. Given the stock’s historical underperformance relative to the Sensex and sectoral challenges, a conservative approach is advisable. However, improving volume trends and positive monthly momentum indicators could provide a foundation for recovery if broader market conditions remain supportive.

For those considering exposure to the packaging sector, Huhtamaki India offers a moderate risk-reward profile with potential upside if technical momentum strengthens further. It remains essential to weigh these technical signals alongside fundamental developments and sector dynamics before making investment decisions.

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