Is Liberty Shoes technically bullish or bearish?

Overview of Liberty Shoes’ Current Price Action

As of early December 2025, Liberty Shoes is trading near ₹298.60, slightly below its previous close of ₹299.00. The stock’s intraday range has been relatively narrow, fluctuating between ₹295.00 and ₹300.20. This price level is significantly lower than its 52-week high of ₹563.00, reflecting a substantial correction over the past year. The 52-week low stands at ₹276.85, indicating that the current price is hovering just above this recent bottom.

Technical Trend Shift and Moving Averages

The technical trend for Liberty Shoes has recently shifted from mildly bearish to outright bearish as of 2 December 2025. This change is corroborated by the daily moving averages, which remain firmly bearish, suggesting that the stock is trading below key average price levels and that downward pressure persists. Moving averages are critical for identifying medium-term momentum, and their bearish stance signals that sellers currently dominate the market.

Momentum Indicators: MACD and KST

The Moving Average Convergence Divergence (MACD) indicator presents a mixed but predominantly negative picture. On a weekly basis, MACD is bearish, indicating that momentum is weakening and the stock may continue to face selling pressure. The monthly MACD is mildly bearish, suggesting some longer-term caution but not a strong sell signal. Conversely, the Know Sure Thing (KST) indicator shows a mildly bullish signal on the weekly chart, hinting at a possible short-term momentum recovery. However, the monthly KST remains mildly bearish, reinforcing the longer-term downtrend.

Volatility and Relative Strength Indicators

Bollinger Bands, which measure price volatility and potential overbought or oversold conditions, are bearish on both weekly and monthly timeframes. This indicates that the stock price is likely trending towards the lower band, signalling increased selling pressure and potential continuation of the downtrend. The Relative Strength Index (RSI), however, does not provide a clear signal on either weekly or monthly charts, suggesting that the stock is neither overbought nor oversold at present.

Volume and Trend Confirmation

On-Balance Volume (OBV) and Dow Theory indicators show no definitive trend on weekly or monthly scales. The absence of volume confirmation through OBV implies that the current price movements lack strong backing from trading volumes, which often precedes sustained trends. Similarly, Dow Theory’s lack of trend signals suggests uncertainty in the broader market sentiment towards Liberty Shoes.

Comparative Performance: Liberty Shoes vs Sensex

Examining Liberty Shoes’ returns relative to the benchmark Sensex reveals a challenging performance landscape. Over the past week, the stock has marginally outperformed the Sensex, delivering a 0.66% gain compared to the index’s 0.65%. However, this short-term resilience is overshadowed by longer-term underperformance. Over the past month, Liberty Shoes declined by 6.67%, while the Sensex rose by 1.43%. Year-to-date, the stock has plummeted nearly 38%, in stark contrast to the Sensex’s 8.96% gain.

Looking further back, the one-year return for Liberty Shoes is negative 39.68%, whereas the Sensex has appreciated by 6.09%. Even over three years, the stock has declined by 16.15%, while the Sensex surged 35.42%. Although Liberty Shoes has delivered strong gains over five years (99.53%) and a positive return over ten years (42.73%), these figures lag behind the Sensex’s respective 90.82% and 225.98% returns, highlighting the stock’s relative weakness in recent periods.

Implications for Investors

The technical indicators collectively suggest that Liberty Shoes is currently in a bearish phase, with dominant signals pointing to continued downward momentum. The recent shift from mildly bearish to bearish trend status underscores this negative outlook. While some short-term indicators like the weekly KST and a slight weekly price gain hint at potential minor rebounds, these are insufficient to offset the broader bearish context.

Investors should be cautious, especially given the stock’s significant underperformance relative to the Sensex over multiple time horizons. The lack of volume confirmation and absence of clear trend signals from Dow Theory further complicate the outlook, indicating that any rallies may lack conviction.

Technical Outlook Summary

In summary, Liberty Shoes is exhibiting a predominantly bearish technical profile. Key momentum indicators such as MACD and Bollinger Bands reinforce the downtrend, while moving averages confirm sustained selling pressure. The absence of strong volume support and neutral RSI readings suggest that the stock is not yet oversold, leaving room for further declines.

Short-term mild bullish signals on the weekly KST and a slight weekly price gain may offer limited relief, but these are unlikely to reverse the prevailing negative trend without significant fundamental or market catalysts. Investors should monitor key support levels near the 52-week low and watch for any changes in volume or momentum that could signal a trend reversal.

Conclusion

Given the current technical data and relative performance metrics, Liberty Shoes cannot be classified as technically bullish at this juncture. The weight of evidence points towards a bearish stance, with the stock facing downward pressure across multiple timeframes. Caution is advised for investors considering new positions, and existing holders should remain vigilant for signs of trend stabilisation before committing further capital.

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