Is Venus Pipes technically bullish or bearish?

Recent Price Movement and Trend Shift

As of 1 December 2025, Venus Pipes' technical trend shifted from mildly bearish to outright bearish. The stock closed at ₹1,289.00, slightly up from the previous close of ₹1,275.40, marking a weekly gain of 0.97%, marginally outperforming the Sensex's 0.87% rise over the same period. However, this short-term uptick contrasts with the broader downward momentum observed over longer time frames.

The stock's 52-week high stands at ₹1,688.95, while the 52-week low is ₹968.80, indicating a significant range of volatility. The current price remains closer to the lower end of this spectrum, underscoring the challenges faced by the stock in regaining its previous highs.

Technical Indicators Paint a Bearish Picture

Examining the key technical indicators provides further insight into the stock's outlook. The Moving Average Convergence Divergence (MACD) is bearish on the weekly chart and mildly bearish on the monthly chart, signalling persistent downward momentum. The Relative Strength Index (RSI), however, does not currently provide a clear signal on either weekly or monthly timeframes, suggesting a lack of strong momentum in either direction.

Bollinger Bands readings are mildly bearish on both weekly and monthly charts, indicating that the stock price is trending towards the lower band, which often reflects increased selling pressure. Daily moving averages also confirm a bearish stance, reinforcing the notion that the stock is under pressure in the short term.

The Know Sure Thing (KST) indicator, a momentum oscillator, is bearish on both weekly and monthly charts, further corroborating the negative momentum. Meanwhile, Dow Theory analysis shows no definitive trend on weekly or monthly scales, implying indecision or consolidation phases without clear directional bias.

On-Balance Volume (OBV), which measures buying and selling pressure, shows no discernible trend, suggesting that volume activity is not strongly supporting either bulls or bears at present.

Comparative Performance Against Sensex

While Venus Pipes has shown some resilience in the very short term, its year-to-date (YTD) and longer-term returns lag significantly behind the benchmark Sensex. The stock has declined by 14.44% YTD compared to the Sensex's 9.60% gain. Over the past year, Venus Pipes has fallen 21.15%, whereas the Sensex has appreciated by 7.32%. This underperformance highlights the stock's struggles amid broader market strength.

However, the three-year return for Venus Pipes is a robust 89.06%, substantially outperforming the Sensex's 35.33% gain over the same period. This suggests that despite recent setbacks, the company has delivered strong growth over a medium-term horizon, which may appeal to investors with a longer-term perspective.

Sector Context and Industry Challenges

Operating within the iron and steel products industry, Venus Pipes is subject to cyclical demand fluctuations, commodity price volatility, and global economic factors impacting steel consumption. The sector has faced headwinds from raw material cost inflation and subdued infrastructure spending, which have weighed on margins and earnings visibility.

These macroeconomic and sector-specific challenges are reflected in the stock's technical weakness and subdued price performance. Investors should consider these external factors alongside technical signals when evaluating the stock's prospects.

Investor Takeaway: Cautious Approach Recommended

In summary, Venus Pipes currently exhibits a predominantly bearish technical profile. The shift from mildly bearish to bearish trend as of early December 2025, combined with negative momentum indicators such as MACD and KST, suggests that the stock may face continued downward pressure in the near term.

While short-term price gains and a strong three-year return offer some optimism, the stock's underperformance relative to the Sensex over the past year and year-to-date periods, alongside sector headwinds, counsel caution. The absence of clear signals from RSI and OBV indicates a lack of strong conviction among market participants, which may result in continued volatility.

Investors should weigh these technical signals alongside fundamental factors and broader market conditions before making investment decisions. Those seeking exposure to the iron and steel products sector might consider diversifying or exploring alternative stocks with more favourable technical and fundamental profiles.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →