Kennametal India Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview and Price Movement

Kennametal India Ltd (NSE: 732050), a key player in the industrial manufacturing sector, closed at ₹2,160.00 on 17 Feb 2026, up from the previous close of ₹2,105.40. The stock’s intraday range spanned ₹2,043.00 to ₹2,160.00, indicating a strong recovery attempt after recent consolidation. However, the 52-week high remains at ₹2,745.10, while the 52-week low is ₹1,932.10, highlighting a wide trading band and significant volatility over the past year.

The technical trend has shifted from outright bearish to mildly bearish, signalling a tentative improvement in price momentum but still reflecting underlying caution among investors. This nuanced shift is supported by a combination of weekly and monthly technical indicators that paint a mixed picture of the stock’s near-term prospects.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator shows a divergence in weekly and monthly signals. On a weekly basis, the MACD is mildly bullish, suggesting that short-term momentum is improving and buyers are gaining some control. Conversely, the monthly MACD remains bearish, indicating that the longer-term trend is still under pressure and that sustained upward momentum has yet to be confirmed.

This divergence is critical for investors to note, as it implies that while short-term rallies may occur, the stock has not decisively broken out of its longer-term downtrend. The daily moving averages reinforce this view, remaining mildly bearish, which suggests that the stock is still facing resistance near current levels.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This lack of momentum extremes indicates that the stock is neither overbought nor oversold, which aligns with the sideways movement observed in the Bollinger Bands on the weekly timeframe.

On the monthly scale, Bollinger Bands are mildly bearish, reflecting a slight downward pressure on price volatility and a tendency for the stock to trade near the lower band. This suggests that while the stock is not in a strong downtrend, it remains vulnerable to further downside if selling pressure intensifies.

Moving Averages and KST Indicator

Daily moving averages remain mildly bearish, with short-term averages likely positioned below longer-term averages, signalling that the stock has yet to establish a clear upward trajectory. This technical setup often acts as a resistance zone, limiting upside potential until a decisive crossover occurs.

The Know Sure Thing (KST) indicator, a momentum oscillator, is bearish on both weekly and monthly timeframes. This persistent bearishness in KST suggests that underlying momentum remains weak, and any rallies may be met with selling pressure. The KST’s bearish stance contrasts with the mildly bullish weekly MACD, underscoring the mixed signals that investors must carefully weigh.

Dow Theory and On-Balance Volume (OBV)

According to Dow Theory, the weekly trend is mildly bullish, indicating some optimism in the short term. However, the monthly Dow Theory trend remains mildly bearish, reinforcing the notion that the longer-term outlook is still uncertain. This split perspective highlights the importance of monitoring both timeframes for confirmation of trend direction.

On-Balance Volume (OBV) data is currently unavailable or inconclusive, limiting the ability to assess volume-driven momentum. Volume analysis would be crucial to validate price moves, especially in a stock exhibiting such mixed technical signals.

Comparative Returns and Market Context

Examining Kennametal India’s returns relative to the Sensex provides additional context. Over the past week, the stock outperformed the Sensex with a 3.01% gain versus the index’s 0.94% decline. Similarly, over one month, Kennametal India gained 6.86%, while the Sensex slipped 0.35%. Year-to-date, the stock is up 3.09%, contrasting with the Sensex’s 2.28% loss.

However, over longer horizons, the stock has underperformed. The one-year return stands at -12.20%, compared to the Sensex’s 9.66% gain. Over three years, Kennametal India’s return is marginally negative at -0.79%, while the Sensex has surged 35.81%. Despite this, the stock has delivered impressive gains over five and ten years, with returns of 126.65% and 217.76% respectively, though the Sensex’s 10-year return of 259.08% remains superior.

This performance mix suggests that while Kennametal India has demonstrated strong long-term growth, recent years have been challenging, and the current technical signals reflect this uncertainty.

Mojo Score and Analyst Ratings

Kennametal India currently holds a Mojo Score of 44.0, categorised as a Sell grade, downgraded from Hold on 5 Feb 2026. This downgrade reflects the deteriorating technical and fundamental outlook as assessed by MarketsMOJO’s proprietary scoring system. The company’s market capitalisation grade is 3, indicating a mid-tier market cap within its sector.

The downgrade to Sell is consistent with the mixed technical signals and the mildly bearish longer-term momentum. Investors should approach the stock with caution, considering the potential for volatility and the absence of strong bullish confirmation from key indicators.

Investment Implications and Outlook

For investors, Kennametal India’s current technical profile suggests a stock in transition. The mildly bullish weekly MACD and Dow Theory signals offer some hope for a short-term rebound, but the persistent bearish monthly indicators and moving averages caution against aggressive positioning.

Given the stock’s recent outperformance relative to the Sensex in the short term, there may be tactical opportunities for traders to capitalise on momentum shifts. However, longer-term investors should weigh the risks of continued sideways or downward pressure, especially in the absence of volume confirmation and with the company’s recent downgrade in Mojo Grade.

Monitoring key technical levels, such as the 52-week low of ₹1,932.10 and resistance near the 52-week high of ₹2,745.10, will be essential to gauge the stock’s next directional move. A sustained break above daily moving averages and monthly MACD turning bullish would be required to signal a more robust recovery.

In summary, Kennametal India Ltd’s technical momentum is cautiously improving but remains encumbered by mixed signals and a recent downgrade in analyst sentiment. Investors should maintain a balanced view, combining technical analysis with fundamental insights to navigate the stock’s evolving landscape.

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