K P R Mill Ltd Faces Bearish Momentum Amid Technical Downgrade

Price Performance and Market Context

As of 12 Feb 2026, K P R Mill Ltd closed at ₹907.80, down 4.48% from the previous close of ₹950.35. The stock traded within a range of ₹898.25 to ₹956.70 during the day, reflecting heightened volatility. This decline contrasts with the broader Sensex, which has shown modest gains over the past week. Over the last week, K P R Mill’s stock return was -8.87%, while the Sensex gained 0.50%. However, over longer periods, the stock has outperformed the benchmark significantly, with a 5-year return of 387.72% compared to Sensex’s 63.46%, and a remarkable 10-year return of 1,223.71% versus 267.00% for the Sensex.

Despite this impressive long-term performance, the recent technical deterioration warrants attention. The stock’s 52-week high stands at ₹1,395.40, while the low is ₹758.80, indicating a wide trading band and potential for further downside if bearish momentum persists.

Technical Indicators Signal Bearish Momentum

The technical trend for K P R Mill Ltd has shifted from mildly bearish to outright bearish, reflecting a weakening price momentum. The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, is bearish on the weekly chart and mildly bearish on the monthly chart. This suggests that the short-term momentum is negative, with the potential for further declines if the MACD line remains below the signal line.

The Relative Strength Index (RSI) currently shows no clear signal on both weekly and monthly timeframes, hovering in a neutral zone. This indicates that the stock is neither overbought nor oversold, but the absence of bullish RSI momentum reduces the likelihood of an imminent rebound.

Bollinger Bands, which measure volatility and price levels relative to moving averages, are bearish on the weekly chart and mildly bearish on the monthly chart. The stock price is trading near the lower band on the weekly timeframe, signalling increased selling pressure and potential continuation of the downtrend.

Daily moving averages have turned bearish, with the stock price trading below key averages such as the 50-day and 200-day moving averages. This crossover confirms the negative momentum and suggests that the stock may face resistance at these levels in any attempted recovery.

Volume and Other Technical Signals

Interestingly, the On-Balance Volume (OBV) indicator is mildly bullish on both weekly and monthly charts. This divergence between price and volume suggests that while prices are declining, accumulation by some investors may be occurring. However, this volume strength has not yet translated into positive price momentum.

The Know Sure Thing (KST) oscillator, which aggregates multiple rate-of-change indicators, is bearish on the weekly chart and mildly bearish on the monthly chart. This aligns with the MACD and Bollinger Bands signals, reinforcing the bearish outlook.

Dow Theory analysis shows no clear trend on the weekly timeframe but indicates a mildly bearish trend on the monthly chart. This mixed signal reflects uncertainty in the broader market sentiment towards the stock.

Mojo Score and Ratings Update

K P R Mill Ltd’s MarketsMOJO score currently stands at 41.0, reflecting a Sell rating. This is a downgrade from the previous Hold rating, effective from 08 Dec 2025. The downgrade is consistent with the deteriorating technical indicators and the bearish momentum observed in recent weeks. The company’s market capitalisation grade is 2, indicating a mid-cap status within the Garments & Apparels sector.

Investors should note that the downgrade reflects a cautious stance given the current technical environment, despite the company’s strong long-term fundamentals and historical outperformance relative to the Sensex.

Comparative Returns and Sector Context

While K P R Mill Ltd has delivered stellar returns over the medium to long term, its recent price action has lagged behind the broader market. Year-to-date, the stock has declined by 3.56%, compared to a 1.16% decline in the Sensex. Over the past year, the stock’s 4.34% gain trails the Sensex’s 10.41% advance, signalling relative underperformance in the near term.

Within the Garments & Apparels sector, the stock’s technical weakness may reflect sector-specific headwinds such as raw material cost pressures, changing consumer demand, or global supply chain disruptions. These factors could be contributing to the bearish technical signals and the cautious market sentiment.

Key Technical Levels to Watch

From a technical perspective, immediate support lies near the 52-week low of ₹758.80, while resistance is expected around the recent high of ₹956.70 and the 50-day moving average. A sustained break below support levels could accelerate the downtrend, while a recovery above resistance and moving averages would be required to reverse the bearish momentum.

Given the mixed volume signals and neutral RSI, investors should monitor for confirmation of trend direction before initiating new positions. The current bearish moving averages and MACD suggest that caution is warranted.

Investor Takeaway

In summary, K P R Mill Ltd is currently exhibiting bearish technical momentum, with multiple indicators signalling downside risk. The downgrade to a Sell rating by MarketsMOJO underscores the need for caution. While the stock’s long-term fundamentals and historical returns remain impressive, the near-term technical outlook suggests that investors should be vigilant and consider risk management strategies.

Those holding the stock may want to watch for signs of technical support or a reversal in momentum before adding to positions. Conversely, investors seeking entry points might prefer to wait for confirmation of a trend change supported by improved moving averages, bullish MACD crossovers, or RSI signals.

Given the mixed volume signals and sector headwinds, a balanced approach that incorporates both technical and fundamental analysis will be essential for navigating the current environment.

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