Technical Trend Overview and Price Movement
On 10 Feb 2026, Indigo Paints Ltd closed at ₹1,040.00, up from the previous close of ₹1,010.15, marking a daily gain of 2.96%. The intraday range was between ₹1,010.00 and ₹1,050.80, indicating moderate volatility. The stock remains well below its 52-week high of ₹1,345.00 but comfortably above the 52-week low of ₹900.05. This price action suggests a consolidation phase after a period of decline.
Over the past week, the stock returned 0.62%, underperforming the Sensex’s 2.94% gain. The one-month return is sharply negative at -13.37%, contrasting with the Sensex’s modest 0.59% rise. Year-to-date, Indigo Paints has declined by 8.93%, while the benchmark index fell 1.36%. The one-year return is deeply negative at -17.62%, against the Sensex’s 7.97% gain. Longer-term returns over three and five years remain negative, highlighting structural challenges within the stock despite sectoral growth.
MACD and Momentum Indicators Signal Caution
The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart and mildly bearish on the monthly chart. This suggests that the stock’s momentum is still under pressure in the medium term, with the possibility of further downside if the MACD line fails to cross above the signal line. The lack of a bullish crossover indicates that buyers have yet to regain control decisively.
Meanwhile, the Relative Strength Index (RSI) shows no clear signal on both weekly and monthly timeframes, hovering in a neutral zone. This absence of overbought or oversold conditions implies that the stock is currently in a consolidation phase without strong directional bias from momentum oscillators.
Bollinger Bands and Moving Averages Reflect Mixed Signals
Bollinger Bands present a mildly bearish outlook on the weekly chart and a bearish stance on the monthly chart. The stock price is trading near the lower band on the monthly timeframe, which often signals potential support but also heightened volatility risk. This technical setup suggests that while the stock may be oversold in the longer term, short-term price swings could remain volatile.
Conversely, daily moving averages have turned mildly bullish, with the stock price trading above its short-term averages. This indicates some emerging buying interest and potential for a short-term rebound. However, this bullishness is tempered by the broader weekly and monthly bearish signals, underscoring the need for cautious optimism.
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Additional Technical Indicators: KST, Dow Theory, and OBV
The Know Sure Thing (KST) indicator presents a mildly bearish signal on the weekly chart but mildly bullish on the monthly chart, reflecting a divergence that complicates the trend outlook. This split suggests that while short-term momentum remains weak, longer-term momentum may be stabilising or improving.
Dow Theory analysis shows no clear trend on the weekly timeframe and a mildly bearish trend on the monthly timeframe. This lack of a definitive trend further supports the sideways technical stance, indicating that the stock is neither in a confirmed uptrend nor a downtrend at present.
On-Balance Volume (OBV) is neutral on the weekly chart but mildly bullish on the monthly chart, signalling that accumulation may be occurring over the longer term despite short-term selling pressure. This could be an early sign of institutional interest or a base-building phase.
Mojo Score and Grade Revision Reflect Market Sentiment
Indigo Paints currently holds a Mojo Score of 55.0, categorised as a Hold, downgraded from a Buy rating on 12 Jan 2026. The Market Cap Grade stands at 3, indicating a mid-tier valuation relative to peers. This downgrade reflects the mixed technical signals and the stock’s underperformance relative to the broader market indices.
Investors should note that the downgrade aligns with the technical indicators signalling sideways to mildly bearish momentum, suggesting a cautious approach until clearer trend confirmation emerges.
Comparative Performance and Sector Context
Within the paints sector, Indigo Paints’ recent price momentum contrasts with the broader market’s modest gains. The Sensex’s positive returns over one week (2.94%) and one month (0.59%) highlight the stock’s relative weakness. Over longer periods, the stock’s negative returns versus the Sensex’s robust gains underscore challenges in regaining investor confidence.
Sectoral peers have shown varied performance, with some benefiting from cyclical demand and raw material cost stabilisation. Indigo Paints’ sideways technical trend may reflect company-specific factors such as earnings growth concerns or competitive pressures.
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Investor Takeaway and Outlook
Indigo Paints Ltd’s current technical profile suggests a period of consolidation with mixed signals from key indicators. The mildly bullish daily moving averages offer some hope for a short-term rebound, but the prevailing weekly and monthly bearishness in MACD and Bollinger Bands advises caution.
Investors should monitor for a decisive MACD crossover or RSI breakout to confirm a sustained trend reversal. Additionally, a break above the 52-week high of ₹1,345.00 would signal renewed strength, while a fall below the 52-week low of ₹900.05 could indicate further downside risk.
Given the downgrade to a Hold rating and the sideways technical trend, a prudent approach would be to await clearer momentum confirmation before increasing exposure. Diversification within the paints sector or exploring higher-rated peers may offer better risk-adjusted opportunities.
Summary of Key Technical Metrics
- MACD: Weekly Bearish, Monthly Mildly Bearish
- RSI: Neutral on Weekly and Monthly
- Bollinger Bands: Weekly Mildly Bearish, Monthly Bearish
- Moving Averages: Daily Mildly Bullish
- KST: Weekly Mildly Bearish, Monthly Mildly Bullish
- Dow Theory: Weekly No Trend, Monthly Mildly Bearish
- OBV: Weekly No Trend, Monthly Mildly Bullish
Overall, Indigo Paints Ltd remains in a technical holding pattern, with momentum indicators signalling a cautious stance. Investors should weigh these signals alongside fundamental developments and sector dynamics before making allocation decisions.
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