Indiamart Intermesh Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Trend Shift and Price Movement

Indiamart Intermesh Ltd’s share price closed at ₹2,181.70 on 19 Feb 2026, down 1.95% from the previous close of ₹2,225.20. The stock traded within a range of ₹2,156.50 to ₹2,210.35 during the day, remaining well below its 52-week high of ₹2,772.00 and closer to the 52-week low of ₹1,850.00. This price action underscores the prevailing bearish momentum that has intensified over recent weeks.

The technical trend has shifted from mildly bearish to outright bearish, signalling increased downside risk. This is corroborated by the daily moving averages, which remain firmly bearish, indicating that the stock is trading below its key short-term and medium-term averages. Such a configuration often suggests sustained selling pressure and a lack of immediate support from buyers.

MACD and RSI Analysis

The Moving Average Convergence Divergence (MACD) indicator, a popular momentum oscillator, is bearish on both weekly and monthly timeframes. This suggests that the stock’s momentum is weakening over both intermediate and longer-term horizons. The MACD line remains below the signal line, reinforcing the negative outlook.

Conversely, the Relative Strength Index (RSI) on weekly and monthly charts currently shows no clear signal, hovering in a neutral zone. This indicates that while the stock is not yet oversold, it lacks the bullish momentum needed to reverse the downtrend. The absence of RSI divergence or oversold conditions suggests that further downside cannot be ruled out.

Bollinger Bands and KST Indicators

Bollinger Bands, which measure volatility and price levels relative to moving averages, are bearish on both weekly and monthly charts. The stock price is trading near the lower band, signalling increased volatility and potential continuation of the downward trend. This technical setup often precedes further declines unless a strong reversal catalyst emerges.

The Know Sure Thing (KST) indicator presents a mixed picture: it is bearish on the weekly timeframe but mildly bullish on the monthly chart. This divergence suggests that while short-term momentum remains weak, there may be some underlying longer-term strength or consolidation underway. However, the weekly bearishness dominates the near-term outlook.

Volume and On-Balance Volume (OBV) Trends

On-Balance Volume (OBV), which tracks buying and selling pressure through volume flow, shows no clear trend on the weekly chart and a mildly bearish signal on the monthly chart. This suggests that volume is not strongly supporting any upward price movement, and selling pressure may be gradually increasing. The lack of a definitive OBV uptrend further weakens the bullish case for the stock.

Dow Theory and Broader Market Context

According to Dow Theory assessments, the stock is mildly bearish on both weekly and monthly timeframes. This aligns with the broader technical signals pointing to a cautious outlook. The stock’s performance relative to the Sensex also highlights challenges: over the past week, Indiamart Intermesh declined by 2.73%, compared to a modest 0.59% drop in the Sensex. Over one month, the stock fell 4.68% while the Sensex gained 0.20%, and year-to-date returns show a slight underperformance of -1.9% versus the Sensex’s -1.74%.

Longer-term returns paint a more concerning picture. Over three years, Indiamart Intermesh has declined by 9.02%, while the Sensex surged 37.26%. Over five years, the stock has plummeted 51.79%, in stark contrast to the Sensex’s 63.15% gain. This persistent underperformance highlights structural challenges within the company or sector that have yet to be resolved.

Mojo Score and Rating Downgrade

Reflecting these technical and fundamental concerns, MarketsMOJO has downgraded Indiamart Intermesh Ltd’s Mojo Grade from Hold to Sell as of 24 Nov 2025. The current Mojo Score stands at 43.0, signalling weak overall momentum and caution for investors. The Market Cap Grade is 3, indicating a mid-tier market capitalisation but not enough to offset the negative technical signals.

This downgrade is significant as it incorporates a comprehensive evaluation of price momentum, volume trends, and relative strength, signalling that the stock is likely to face continued headwinds in the near term.

Sector and Industry Considerations

Indiamart Intermesh operates within the E-Retail/ E-Commerce sector, which has faced significant volatility amid changing consumer behaviour and competitive pressures. While the sector has pockets of growth, the company’s technical deterioration suggests it is struggling to capitalise on these trends effectively.

Investors should note that the stock’s technical indicators, including bearish MACD and moving averages, combined with weak volume support, point to a cautious stance. The lack of RSI signals and mixed KST readings imply that any potential recovery may be slow and uncertain.

Conclusion: Navigating the Bearish Momentum

In summary, Indiamart Intermesh Ltd’s technical parameters have shifted decisively towards a bearish stance, with multiple indicators confirming weakening momentum. The downgrade to a Sell rating by MarketsMOJO reflects these developments and the stock’s underperformance relative to the broader market.

For investors, this suggests a need for prudence and close monitoring of price action and volume trends. While longer-term investors may await clearer signs of recovery, short- to medium-term traders should be wary of further downside risk. The company’s position within a competitive and evolving sector adds an additional layer of complexity to its outlook.

Overall, the technical landscape for Indiamart Intermesh Ltd currently favours caution, with bearish momentum likely to persist until significant positive catalysts emerge.

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