KEI Industries Ltd Technical Momentum Shifts Signal Bullish Outlook

Technical Momentum and Indicator Analysis

KEI Industries Ltd (NSE: 254021) closed at ₹4,568.80 on 18 Feb 2026, marking a 1.92% increase from the previous close of ₹4,482.60. The stock traded within a range of ₹4,461.75 to ₹4,578.20 during the session, nearing its 52-week high of ₹4,645.00, a level that signals strong resistance but also highlights the stock’s upward trajectory over the past year.

The technical trend has upgraded from mildly bullish to bullish, reflecting increased buying interest and momentum. The Moving Average Convergence Divergence (MACD) indicator remains bullish on both weekly and monthly timeframes, signalling sustained upward momentum. The weekly MACD line continues to stay above its signal line, confirming positive momentum in the near term, while the monthly MACD supports a longer-term bullish trend.

Bollinger Bands also reinforce this positive momentum, with both weekly and monthly readings indicating bullish conditions. The stock price is currently trading near the upper band, suggesting strong buying pressure but also cautioning about potential short-term overextension. Meanwhile, the daily moving averages align with this bullish stance, with the stock price comfortably above its 50-day and 200-day moving averages, a classic confirmation of an uptrend.

Relative Strength Index (RSI) readings on weekly and monthly charts show no clear signal, hovering in neutral territory. This suggests that while momentum is positive, the stock is not yet overbought, leaving room for further gains without immediate risk of a sharp correction.

Additional Technical Signals and Market Context

The Know Sure Thing (KST) indicator presents a mixed picture: weekly readings are bullish, supporting short-term momentum, while monthly readings are mildly bearish, suggesting some caution over the longer horizon. This divergence indicates that while the stock is currently in an upswing, investors should monitor monthly trends for potential shifts.

Dow Theory assessments show no clear weekly trend but a mildly bullish monthly outlook, reinforcing the notion of a strengthening long-term trend. On-Balance Volume (OBV) readings are mildly bullish on the weekly scale, indicating that volume supports price gains, though monthly OBV shows no definitive trend, signalling that accumulation may be moderate.

KEI Industries’ technical upgrades coincide with a Mojo Score of 72.0 and a Mojo Grade of Buy, revised downward from a previous Strong Buy rating on 16 Feb 2026. This slight moderation reflects a more cautious stance despite the bullish technical momentum, possibly due to valuation considerations or sector dynamics. The company holds a Market Cap Grade of 2, indicating a mid-cap status within the cables electricals sector.

Price Performance Relative to Sensex

KEI Industries has outperformed the broader market significantly over multiple timeframes. Over the past week, the stock declined marginally by 0.42%, but this was less severe than the Sensex’s 0.98% drop. Over one month, KEI surged 4.28%, contrasting with a slight 0.14% decline in the Sensex. Year-to-date, KEI has gained 2.44%, while the Sensex fell 2.08%, highlighting relative strength.

Longer-term returns are even more impressive. Over one year, KEI delivered a 32.45% return compared to the Sensex’s 9.81%. Over three years, the stock’s return of 169.07% dwarfs the Sensex’s 36.80%, and over five years, KEI’s extraordinary 816.88% gain far exceeds the Sensex’s 61.40%. The ten-year return is particularly striking, with KEI appreciating 4,679.08% against the Sensex’s 256.90%, underscoring the company’s exceptional growth trajectory and value creation for shareholders.

Implications for Investors and Sector Outlook

KEI Industries’ technical indicators suggest a robust bullish momentum in the near term, supported by strong MACD and moving average signals. The stock’s proximity to its 52-week high indicates investor confidence, though the neutral RSI readings imply that the stock is not yet overbought, allowing for potential further appreciation.

Investors should note the mixed signals from longer-term indicators such as the monthly KST and OBV, which counsel some prudence. The downgrade from Strong Buy to Buy by MarketsMOJO on 16 Feb 2026 reflects a balanced view, recognising the stock’s strong fundamentals and technicals while factoring in valuation and sector risks.

Within the cables electricals sector, KEI Industries remains a leader, benefiting from sustained demand in infrastructure, power transmission, and industrial segments. The company’s consistent outperformance relative to the Sensex over multiple horizons highlights its resilience and growth potential.

Technical traders may view the bullish crossover in MACD and the stock’s position above key moving averages as buy signals, while fundamental investors will appreciate the company’s strong returns and market position. However, monitoring volume trends and longer-term momentum indicators will be crucial to gauge the sustainability of the current rally.

Summary

KEI Industries Ltd’s recent technical parameter changes mark a clear shift towards bullish momentum, supported by multiple indicators including MACD, Bollinger Bands, and moving averages. While some monthly indicators suggest caution, the overall trend remains positive, reinforced by strong price performance relative to the Sensex and a solid Mojo Score of 72.0 with a Buy rating. Investors should consider this technical backdrop alongside fundamental factors to make informed decisions in the evolving cables electricals sector landscape.

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