Is Honeywell Auto technically bullish or bearish?

Technical Trend Shift and Momentum Indicators

As of 25 Nov 2025, Honeywell Auto's technical trend has shifted from mildly bearish to outright bearish. This transition is underscored by several key technical indicators that suggest downward momentum is gaining strength. The Moving Average Convergence Divergence (MACD) readings on both weekly and monthly charts remain bearish, indicating that the stock's short-term momentum is weak relative to its longer-term trend.

Similarly, the Know Sure Thing (KST) oscillator, a momentum indicator that aggregates multiple rate-of-change calculations, is bearish on both weekly and monthly timeframes. This reinforces the view that the stock is experiencing sustained selling pressure.

Mixed Signals from Oscillators and Volume

While the Relative Strength Index (RSI) on weekly and monthly charts currently shows no clear signal, the Bollinger Bands suggest a mildly bearish stance weekly and a more pronounced bearish trend monthly. This implies that price volatility is skewed towards the downside, with the stock trading closer to its lower band, often a sign of weakness.

Interestingly, the On-Balance Volume (OBV) indicator presents a mildly bullish signal on both weekly and monthly scales. This divergence between price momentum and volume could indicate some accumulation by informed investors, though it is not strong enough to offset the prevailing bearish technical environment.

Moving Averages and Dow Theory Analysis

Daily moving averages for Honeywell Auto are bearish, signalling that the stock price is trading below key average price levels, which often act as resistance. The Dow Theory analysis adds nuance, showing no clear trend on the weekly chart but a mildly bearish trend on the monthly chart. This suggests that while short-term price action may be indecisive, the medium-term outlook remains negative.

Price Performance and Volatility

Honeywell Auto's current price stands at ₹34,875, down from the previous close of ₹36,547.25. The stock's 52-week high is ₹43,799.90, while the low is ₹31,501.70, indicating a wide trading range but with recent prices closer to the lower end. Today's intraday range between ₹34,849.65 and ₹36,270.00 further reflects volatility with a downward bias.

Comparative Returns Highlight Underperformance

When analysing Honeywell Auto's returns relative to the Sensex benchmark, the stock has consistently lagged over multiple periods. Year-to-date, the stock has declined by 16.7%, while the Sensex has gained 8.3%. Over the past year, Honeywell Auto's return is negative 15.8% compared to the Sensex's positive 5.6%. Even over a three-year horizon, the stock has fallen 17.6%, whereas the Sensex has surged 35.8%.

Longer-term data shows some recovery, with a 5-year return of 13.0% for Honeywell Auto, though this still trails the Sensex's 93.0% gain. Over a decade, however, the stock has outperformed the benchmark with a 282.5% return versus 228.2% for the Sensex, indicating that while recent performance has been weak, the company has delivered substantial value over the long haul.

Industry Context and Investor Implications

Operating within the industrial manufacturing sector, Honeywell Auto faces cyclical headwinds that are reflected in its technical and price performance. The bearish technical signals suggest that investors should exercise caution, particularly in the short to medium term. The divergence between volume-based indicators and price momentum may warrant close monitoring for any signs of a reversal, but current data does not support a bullish stance.

Investors should also consider the stock's relative weakness compared to broader market indices and sector peers before committing fresh capital. The technical landscape indicates that downside risks remain elevated, and any rallies may be met with resistance near moving average levels.

Conclusion: Technical Outlook Remains Bearish

In summary, Honeywell Auto's technical indicators predominantly signal a bearish trend, with multiple momentum oscillators and moving averages confirming downward pressure. The stock's recent price action and relative underperformance against the Sensex reinforce this cautious view. While volume indicators hint at some mild accumulation, they are insufficient to counterbalance the prevailing negative momentum.

For investors, this suggests that Honeywell Auto is currently in a weak technical phase, and any positions should be approached with prudence. Monitoring for a sustained shift in momentum or a break above key resistance levels would be prudent before considering bullish exposure.

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