KEI Industries Ltd Technical Momentum Shifts to Bullish Amid Mixed Indicator Signals

Technical Trend Evolution and Price Momentum

KEI Industries, a prominent player in the Cables - Electricals sector, currently trades at ₹4,513.00, marking a 1.18% increase from its previous close of ₹4,460.15. The stock’s intraday range has been relatively tight, with a low of ₹4,444.80 and a high of ₹4,523.45, indicating controlled volatility. Notably, the stock is trading close to its 52-week high of ₹4,574.65, a level that has acted as a resistance point in recent sessions.

The technical trend for KEI Industries has upgraded from mildly bullish to bullish, reflecting an improvement in price momentum and investor sentiment. This shift is corroborated by the daily moving averages, which currently signal a bullish trend, suggesting that short-term price action is gaining strength. The stock’s 1-week return of 2.34% significantly outperforms the Sensex’s marginal decline of 0.26%, reinforcing the positive momentum in the near term.

MACD and Bollinger Bands Confirm Bullish Signals

The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, presents a bullish outlook on both weekly and monthly timeframes. This dual timeframe bullishness indicates sustained upward momentum and a potential continuation of the rally. The MACD line remains above the signal line, suggesting that buying pressure is prevailing over selling pressure.

Complementing the MACD, Bollinger Bands on weekly and monthly charts also signal bullishness. The price action hugging the upper band suggests strong buying interest and potential for further upside. This alignment of MACD and Bollinger Bands is a positive technical confluence that often precedes sustained price advances.

RSI and KST Indicators Show Mixed Signals

While MACD and Bollinger Bands present a bullish case, the Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal. This neutral RSI suggests that the stock is neither overbought nor oversold, implying room for further price movement in either direction without immediate risk of a reversal due to exhaustion.

Conversely, the Know Sure Thing (KST) oscillator indicates a mildly bearish trend on weekly and monthly timeframes. This divergence between KST and other momentum indicators warrants caution, as it may reflect underlying short-term profit-taking or consolidation phases within the broader bullish trend.

Moving Averages and Dow Theory Support Bullish Outlook

Daily moving averages have turned bullish, reinforcing the positive momentum in the short term. The stock’s price remains above key moving averages, which often act as dynamic support levels. This technical setup is favourable for continuation of the upward trend, provided the stock maintains these levels.

Dow Theory assessments on weekly and monthly charts are mildly bullish, indicating that the primary trend remains upward. This is a significant confirmation for investors who rely on trend-following strategies, as it suggests that the stock is in a sustained uptrend despite intermittent corrections.

Volume and On-Balance Volume (OBV) Analysis

On-Balance Volume (OBV) readings on weekly and monthly charts show no clear trend, indicating that volume flow has been relatively balanced between buyers and sellers. This lack of directional volume trend suggests that while price momentum is bullish, it is not yet accompanied by a strong surge in volume, which could be a factor to monitor for confirmation of trend strength.

Long-Term Returns Outperform Benchmarks

KEI Industries has delivered exceptional long-term returns compared to the Sensex. Over the past 3 years, the stock has surged by 207.92%, vastly outperforming the Sensex’s 40.02% gain. Over 5 years, the outperformance is even more pronounced, with KEI delivering 845.92% returns against Sensex’s 77.96%. The 10-year return stands at an extraordinary 3,708.44%, dwarfing the Sensex’s 225.63% over the same period.

However, in the most recent 1-year period, KEI’s return of 0.89% lags behind the Sensex’s 8.51%, indicating some short-term underperformance. This divergence may be attributed to sector-specific challenges or broader market rotations but does not detract from the stock’s strong technical positioning and long-term growth trajectory.

Mojo Score and Grade Reflect Cautious Optimism

MarketsMOJO assigns KEI Industries a Mojo Score of 65.0, categorising the stock with a Hold grade as of 2 January 2026. This represents a downgrade from a previous Buy rating issued on 29 December 2025. The downgrade reflects a more cautious stance amid mixed technical signals and recent market volatility.

The Market Cap Grade stands at 2, indicating a mid-tier market capitalisation relative to peers in the Cables - Electricals sector. This grading, combined with the technical trend upgrade to bullish, suggests that while KEI Industries is showing signs of renewed strength, investors should remain vigilant for potential volatility or sector-specific headwinds.

Investment Implications and Outlook

KEI Industries’ technical momentum shift to bullish, supported by MACD, Bollinger Bands, and moving averages, presents a compelling case for investors seeking exposure to the electrical cables sector. The stock’s proximity to its 52-week high and outperformance relative to the Sensex over shorter periods further bolster its appeal.

However, the mixed signals from RSI and KST oscillators, coupled with neutral volume trends, advise a measured approach. Investors should monitor key support levels around daily moving averages and watch for confirmation of volume-driven breakouts to validate the bullish trend.

Given the recent downgrade in Mojo Grade to Hold, KEI Industries may be best suited for investors with a moderate risk appetite who are comfortable with sector cyclicality and technical fluctuations. Long-term investors can take confidence from the stock’s impressive multi-year returns and improving technical backdrop.

Conclusion

KEI Industries Ltd is currently navigating a pivotal phase marked by a technical momentum upgrade to bullish, signalling potential for further gains. The convergence of positive MACD and Bollinger Bands readings with supportive moving averages provides a solid foundation for upward price movement. Nevertheless, the presence of neutral and mildly bearish signals from other indicators suggests that investors should remain cautious and watch for sustained volume confirmation.

Overall, KEI Industries remains a significant contender within the Cables - Electricals sector, offering attractive long-term growth prospects supported by improving technical trends. Market participants should balance optimism with prudence as the stock approaches critical resistance levels near its 52-week high.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →