Is Welspun Living technically bullish or bearish?

Recent Technical Trend Shift

As of 01 December 2025, Welspun Living's technical trend has shifted from mildly bullish to mildly bearish. This change reflects a subtle but important alteration in market sentiment and price momentum. The transition indicates that while the stock had shown some positive momentum earlier, recent price action and indicator readings have introduced caution among traders and analysts.

Key Technical Indicators: Weekly vs Monthly Perspectives

Examining the Moving Average Convergence Divergence (MACD), a widely respected momentum indicator, reveals a divergence in timeframe signals. On a weekly basis, the MACD remains bullish, suggesting short-term upward momentum. However, the monthly MACD is mildly bearish, signalling that longer-term momentum is weakening. This dichotomy implies that while short-term traders might find opportunities, longer-term investors should be wary of potential downward pressure.

The Relative Strength Index (RSI), which measures the speed and change of price movements, currently offers no clear signal on either weekly or monthly charts. This neutrality suggests that the stock is neither overbought nor oversold, leaving room for price movement in either direction depending on other factors.

Bollinger Bands, which assess volatility and potential price ranges, show a mildly bullish stance on the weekly chart but a sideways pattern on the monthly chart. The weekly mild bullishness indicates some upward price pressure with moderate volatility, whereas the monthly sideways trend suggests consolidation without a clear directional bias over the longer term.

Moving Averages and KST Indicator Insights

Daily moving averages for Welspun Living are mildly bearish, reflecting recent price declines or weakness relative to short-term averages. This aligns with the overall mildly bearish trend shift noted earlier. Conversely, the Know Sure Thing (KST) indicator, which is a momentum oscillator, shows bullish readings on the weekly chart but bearish on the monthly chart. This again highlights the contrast between short-term optimism and longer-term caution.

Volume and Dow Theory Signals

On-Balance Volume (OBV), a volume-based indicator that helps confirm price trends, shows no discernible trend on either weekly or monthly charts. This absence of volume confirmation suggests that price movements may lack strong conviction from market participants. Similarly, Dow Theory analysis reveals no clear trend on weekly or monthly timeframes, indicating that the stock has not established a definitive primary trend according to this classical method.

Price Action and Volatility Overview

Welspun Living's current market price stands at ₹141.95, down from the previous close of ₹148.70. The stock has traded within a range of ₹140.10 to ₹147.80 today, reflecting some intraday volatility. Over the past 52 weeks, the stock has seen a high of ₹187.80 and a low of ₹105.00, indicating a significant price range and potential for both upside and downside movements.

Comparative Returns: Welspun Living vs Sensex

When analysing returns relative to the benchmark Sensex, Welspun Living has delivered mixed performance. Over the past week and month, the stock has outperformed the Sensex substantially, with returns of 7.5% and 9.15% respectively, compared to the Sensex's 0.87% and 2.03%. This short-term outperformance suggests some recent buying interest and momentum.

However, the year-to-date (YTD) and one-year returns tell a different story. Welspun Living has declined by 9.9% YTD and 7.01% over the last year, while the Sensex has gained 9.6% and 7.32% over the same periods. This underperformance highlights challenges the company or sector may be facing in the medium term.

Longer-term returns over three and five years are more favourable, with Welspun Living delivering 75.03% and 111.24% respectively, outperforming the Sensex's 35.33% and 91.78%. This indicates that despite recent setbacks, the stock has historically rewarded patient investors with strong gains. Over a ten-year horizon, however, the stock's 64.09% return trails the Sensex's 227.26%, reflecting broader market growth outpacing the company in the very long term.

Sector Context and Industry Dynamics

Operating within the Garments & Apparels industry, Welspun Living faces sector-specific headwinds and opportunities. The apparel sector is often sensitive to consumer demand cycles, raw material costs, and global trade conditions. Technical indicators suggest that while short-term momentum exists, longer-term caution is warranted, possibly reflecting uncertainties in demand or margin pressures.

Investors should also consider macroeconomic factors such as inflation, currency fluctuations, and supply chain disruptions that can impact the sector's profitability and stock performance.

Technical Outlook: Balancing Bullish and Bearish Signals

Overall, Welspun Living's technical profile is characterised by a blend of bullish and bearish signals that vary by timeframe and indicator. The weekly bullishness in MACD and KST suggests that short-term traders may find opportunities for gains, especially if momentum continues to build. Mildly bullish Bollinger Bands on the weekly chart also support this view of moderate upward price pressure.

Conversely, the monthly mildly bearish MACD and KST, alongside daily moving averages signalling mild bearishness, caution investors about potential medium- to long-term weakness. The absence of clear trends in Dow Theory and OBV further complicates the picture, indicating that the stock has yet to establish a strong directional conviction.

Given this mixed technical landscape, investors should approach Welspun Living with a balanced perspective. Short-term trading strategies might capitalise on bullish weekly signals, but longer-term investors should monitor for confirmation of trend direction before committing significant capital.

Price Levels and Support-Resistance Considerations

From a price perspective, the stock's current level near ₹142 is significantly below its 52-week high of ₹187.80, suggesting room for recovery if bullish momentum strengthens. However, the proximity to the 52-week low of ₹105.00 also highlights downside risk if bearish forces prevail. Traders should watch key support and resistance levels closely, as breaches could signal trend acceleration in either direction.

Conclusion: Is Welspun Living Technically Bullish or Bearish?

In conclusion, Welspun Living cannot be categorised as purely bullish or bearish at this juncture. The technical trend's recent shift to mildly bearish, combined with mixed indicator readings, points to a cautious stance. Short-term indicators lean bullish, offering potential trading opportunities, but monthly and daily signals suggest underlying weakness that could limit sustained gains.

Investors should weigh these factors carefully, considering their investment horizon and risk tolerance. Monitoring upcoming price action, volume trends, and sector developments will be crucial to reassessing the stock's technical stance in the near future.

For those seeking to optimise their portfolio, exploring peer comparisons and alternative opportunities within the Garments & Apparels sector or broader market may provide enhanced risk-adjusted returns.

Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →