Technical Trend Overview: From Mild Bearish to Sideways
Huhtamaki India’s technical trend has transitioned from mildly bearish to sideways, signalling a pause in the downward momentum that has characterised much of 2025. The stock closed at ₹207.50 on 31 Dec 2025, up from the previous close of ₹205.90, with intraday trading ranging between ₹205.35 and ₹208.40. This price action suggests a tentative consolidation phase after a prolonged decline from its 52-week high of ₹284.90 to a low of ₹170.40.
The sideways trend indicates that neither buyers nor sellers currently dominate, which often precedes a significant directional move. Investors should monitor this phase closely for confirmation of either a breakout or a renewed decline.
MACD Signals: Persistent Bearishness on Weekly and Monthly Frames
The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly charts, signalling that the underlying momentum is still skewed towards the downside. The weekly MACD line continues to trade below its signal line, reflecting short-term selling pressure, while the monthly MACD confirms a longer-term bearish trend. This divergence between the MACD and the recent sideways price action suggests that the stock has yet to establish a sustainable bullish momentum.
RSI Analysis: Bullish Monthly Signal Amid Weekly Neutrality
The Relative Strength Index (RSI) presents a mixed picture. On the weekly chart, the RSI is neutral, offering no clear buy or sell signal, hovering around the mid-50s range. However, the monthly RSI has turned bullish, rising above the 50 threshold, which indicates improving momentum over the longer term. This bullish monthly RSI could be an early sign of a potential recovery if supported by other indicators and volume trends.
Moving Averages: Mildly Bullish Daily Outlook
On the daily timeframe, moving averages have turned mildly bullish. The stock price is currently trading slightly above its short-term moving averages, suggesting some buying interest. However, the longer-term moving averages remain above the current price, indicating that the overall trend is still under pressure. This configuration often points to a cautious optimism among traders, with the possibility of a short-term bounce but no confirmed trend reversal yet.
Bollinger Bands and KST: Bearish Momentum Persists
Bollinger Bands on both weekly and monthly charts remain bearish, with the stock price frequently touching or breaching the lower band, signalling sustained volatility and downward pressure. The Know Sure Thing (KST) indicator also remains bearish on weekly and monthly frames, reinforcing the view that momentum has not yet shifted decisively to the upside.
Volume and Dow Theory: Mixed Signals
On-Balance Volume (OBV) shows a mildly bullish trend on the weekly chart and a bullish trend on the monthly chart, suggesting that accumulation might be occurring despite the price weakness. This divergence between volume and price could indicate that institutional investors are gradually building positions.
Dow Theory assessments are mildly bullish on the weekly timeframe but mildly bearish on the monthly, reflecting the ongoing uncertainty in the stock’s directional bias. This split view underscores the importance of monitoring upcoming price action for clearer trend confirmation.
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Comparative Performance: Underperformance Against Sensex Benchmarks
Huhtamaki India’s returns have lagged significantly behind the broader market indices. Over the past week, the stock declined by 1.96%, compared to the Sensex’s 0.99% fall. The one-month performance shows a sharper drop of 5.19% against the Sensex’s 1.20% decline. Year-to-date and one-year returns are deeply negative at -23.36% and -22.83% respectively, while the Sensex posted gains of 8.36% and 8.21% over the same periods.
Longer-term returns also highlight the stock’s relative weakness. Over three years, Huhtamaki India managed a modest 4.35% gain, far below the Sensex’s 39.17%. The five-year and ten-year returns are negative at -33.11% and -13.54%, respectively, while the Sensex surged 77.34% and 226.18% over these horizons. This persistent underperformance reflects sector-specific challenges and company-level headwinds that have weighed on investor sentiment.
Mojo Score and Rating Upgrade: From Sell to Hold
MarketsMOJO’s proprietary scoring system has upgraded Huhtamaki India’s Mojo Grade from Sell to Hold as of 22 Dec 2025, with a current Mojo Score of 57.0. This upgrade reflects an improvement in technical parameters and a stabilisation of price momentum, although the stock remains below the threshold for a Buy rating. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers in the packaging sector.
The Hold rating suggests that investors should adopt a cautious stance, recognising the potential for consolidation but also the risks of further downside if bearish technical signals reassert themselves.
Outlook and Investor Considerations
Huhtamaki India’s technical indicators present a nuanced picture. While short-term moving averages and monthly RSI hint at a possible recovery, persistent bearishness in MACD, Bollinger Bands, and KST caution against premature optimism. The sideways trend may offer a base for a future rally, but confirmation through sustained volume support and a break above key resistance levels is essential.
Investors should weigh the stock’s relative underperformance against the Sensex and sector peers, alongside the recent upgrade to a Hold rating. Those with a higher risk tolerance might consider accumulating on dips, while more conservative investors may prefer to await clearer bullish signals.
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Summary
In summary, Huhtamaki India Ltd is navigating a critical juncture in its technical trajectory. The shift from a mildly bearish to a sideways trend, combined with mixed signals from key indicators, suggests a period of consolidation. While the monthly RSI and daily moving averages offer glimmers of hope, the dominant bearish MACD and Bollinger Bands caution investors to remain vigilant.
Given the stock’s significant underperformance relative to the Sensex and the Hold rating from MarketsMOJO, investors should approach with measured optimism, focusing on technical confirmation before committing to sizeable positions. The evolving technical landscape warrants close monitoring as the stock attempts to stabilise and potentially regain upward momentum in the coming months.
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