Technical Momentum and Indicator Overview
Recent technical analysis reveals that Indian Hume Pipe’s weekly MACD (Moving Average Convergence Divergence) has turned bearish, while the monthly MACD remains mildly bearish. This suggests that the stock’s short-term momentum is weakening, with the potential for further downside if the trend persists. The MACD histogram has shown increasing negative divergence over the past few weeks, indicating that selling pressure is gaining traction.
The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no clear signal, hovering in a neutral zone. This lack of momentum in RSI suggests that the stock is neither overbought nor oversold, leaving room for either a rebound or further decline depending on market catalysts.
Bollinger Bands, which measure volatility and price levels relative to moving averages, have turned bearish on both weekly and monthly charts. The stock price has recently touched the lower band on the weekly chart, signalling increased volatility and a potential continuation of the downward trend. This aligns with the MACD’s bearish signals and suggests that price momentum is weakening.
Moving Averages and Trend Assessment
On a daily basis, moving averages present a mildly bullish picture, with the stock price currently trading slightly above its short-term moving averages. However, this mild bullishness is overshadowed by the broader weekly and monthly bearish signals. The KST (Know Sure Thing) indicator, which aggregates multiple rate-of-change calculations, is mildly bearish on both weekly and monthly timeframes, reinforcing the notion of weakening momentum.
Dow Theory assessments further support this cautious stance, with the weekly trend mildly bearish and the monthly trend showing no definitive direction. The On-Balance Volume (OBV) indicator remains neutral on both weekly and monthly charts, indicating that volume trends have not decisively confirmed either buying or selling pressure.
Price Action and Market Context
Indian Hume Pipe’s current price stands at ₹365.80, down marginally from the previous close of ₹367.55, reflecting a day change of -0.48%. The stock’s intraday range has been relatively tight, with a high of ₹368.00 and a low of ₹360.00. Over the past 52 weeks, the stock has traded between ₹283.05 and ₹490.00, indicating significant volatility and a wide trading range.
Comparing the stock’s returns against the benchmark Sensex reveals a mixed performance. Over the past week and month, Indian Hume Pipe has underperformed the Sensex, with returns of -6.16% and -6.37% respectively, compared to the Sensex’s -0.94% and -0.35%. Year-to-date, the stock has declined by 10.37%, while the Sensex has fallen by 2.28%. However, over longer horizons, the stock has outperformed the benchmark significantly, delivering 26.12% over one year, 156.16% over three years, and 95.72% over five years, underscoring its strong historical growth trajectory despite recent headwinds.
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Mojo Score and Grade Revision
MarketsMOJO’s latest assessment has downgraded Indian Hume Pipe’s Mojo Grade from Sell to Strong Sell as of 16 Feb 2026, reflecting the deteriorating technical outlook and increasing risk factors. The company’s Mojo Score currently stands at 20.0, signalling weak fundamentals and technicals relative to peers. The Market Cap Grade remains low at 3, indicating limited market capitalisation strength compared to industry benchmarks.
This downgrade is consistent with the technical indicators’ shift towards bearishness and the stock’s recent underperformance relative to the broader market. Investors should exercise caution and closely monitor upcoming earnings and sector developments before considering new positions.
Sector and Industry Considerations
Operating within the industrial manufacturing sector, Indian Hume Pipe is subject to cyclical demand fluctuations and raw material cost pressures. The sector has faced headwinds recently due to global supply chain disruptions and inflationary trends, which have impacted margins and investor sentiment. The stock’s technical weakness may partly reflect these broader sectoral challenges, alongside company-specific factors.
Given the mildly bearish technical signals and the stock’s relative underperformance in the short term, investors may want to compare Indian Hume Pipe with other industrial manufacturing peers that exhibit stronger momentum or more favourable valuations.
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Investor Implications and Outlook
From a technical perspective, the shift to a mildly bearish trend suggests that Indian Hume Pipe may face further downward pressure in the near term. The bearish weekly MACD and Bollinger Bands indicate that momentum is weakening, while the neutral RSI and OBV imply that the stock has yet to reach an oversold condition that might prompt a rebound.
Investors should watch for confirmation of trend direction in the coming weeks, particularly monitoring whether the stock can sustain levels above its daily moving averages or if it breaks below recent support near ₹360. A sustained breach could trigger further selling, while a recovery above short-term moving averages might signal a return to mild bullishness.
Long-term investors may take comfort from the stock’s strong multi-year returns, but the current technical signals advise prudence and suggest that new positions be approached cautiously until clearer momentum emerges.
Overall, Indian Hume Pipe’s technical profile reflects a stock in transition, with mixed signals that require careful analysis and monitoring. The downgrade to a Strong Sell Mojo Grade underscores the need for investors to reassess their exposure and consider alternative opportunities within the industrial manufacturing sector or broader market.
Summary of Key Technical Indicators:
- MACD: Weekly Bearish, Monthly Mildly Bearish
- RSI: Neutral on Weekly and Monthly
- Bollinger Bands: Bearish on Weekly and Monthly
- Moving Averages: Daily Mildly Bullish
- KST: Mildly Bearish on Weekly and Monthly
- Dow Theory: Weekly Mildly Bearish, Monthly No Trend
- OBV: No clear trend on Weekly and Monthly
Price and Return Highlights:
- Current Price: ₹365.80
- 52-Week Range: ₹283.05 - ₹490.00
- 1 Week Return: -6.16% vs Sensex -0.94%
- 1 Month Return: -6.37% vs Sensex -0.35%
- Year-to-Date Return: -10.37% vs Sensex -2.28%
- 1 Year Return: +26.12% vs Sensex +9.66%
- 3 Year Return: +156.16% vs Sensex +35.81%
- 5 Year Return: +95.72% vs Sensex +59.83%
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