Technical Trend Overview
The company’s technical trend has deteriorated from mildly bearish to outright bearish, reflecting increasing selling pressure. The Moving Average Convergence Divergence (MACD) indicator remains bearish on a weekly basis and mildly bearish monthly, suggesting that momentum is weakening. The Relative Strength Index (RSI) currently shows no clear signal on both weekly and monthly charts, indicating a lack of strong directional momentum in the short term.
Bollinger Bands also reflect a mildly bearish stance on weekly and monthly timeframes, signalling that the stock price is trading near the lower band, which often indicates increased volatility and potential downward pressure. Daily moving averages reinforce this bearish outlook, with the stock price trading below key averages, confirming the negative momentum.
Price Action and Volatility
On 6 Feb 2026, Lakshmi Mills traded within a range of ₹7,110 to ₹7,368.95, closing at ₹7,223, down 2.54% from the previous day’s close. This decline comes despite the stock’s strong historical performance, with a 1-year return of 17.81% compared to the Sensex’s 6.44%, and an impressive 5-year return of 295.79% versus the Sensex’s 64.22%. However, the recent monthly return of -9.48% significantly underperformed the Sensex’s -2.49%, highlighting short-term weakness.
Momentum Indicators and Volume Analysis
The Know Sure Thing (KST) indicator is bearish on a weekly basis and mildly bearish monthly, reinforcing the negative momentum. The Dow Theory presents a mildly bullish signal weekly but no clear trend monthly, suggesting some underlying support but insufficient to reverse the bearish technical signals. On-Balance Volume (OBV) data is not available, limiting volume-based confirmation of the trend.
Comparative Market Performance
While Lakshmi Mills has outperformed the Sensex over longer periods, recent price momentum has faltered. The stock’s 1-week return of 2.86% outpaced the Sensex’s 0.91%, but this short-term gain was overshadowed by the monthly and year-to-date declines. This divergence between short-term gains and longer-term underperformance may indicate profit-taking or sector-specific headwinds impacting the Garments & Apparels industry.
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Mojo Score and Market Capitalisation Insights
Lakshmi Mills currently holds a Mojo Score of 34.0, categorised as a Sell, which is an upgrade from its previous Strong Sell rating on 3 Feb 2026. This improvement, while positive, still reflects a cautious stance from MarketsMOJO’s quantitative assessment. The company’s market cap grade stands at 4, indicating a relatively small market capitalisation within its sector, which may contribute to higher volatility and sensitivity to market movements.
Moving Averages and Support Levels
Daily moving averages are bearish, with the stock price trading below its 50-day and 200-day moving averages. This technical positioning suggests that the stock is in a downtrend and may face resistance at these levels. The 52-week high of ₹10,059 and low of ₹4,900.05 provide a wide trading range, with the current price closer to the upper half but showing signs of retracement.
Sector and Industry Context
Within the Garments & Apparels sector, Lakshmi Mills faces competitive pressures and cyclical demand fluctuations. The sector’s performance often correlates with consumer spending trends and export demand, which have recently been subdued. This macroeconomic backdrop may be contributing to the stock’s technical weakness despite its strong long-term fundamentals.
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Investor Takeaway and Outlook
Investors should approach Lakshmi Mills with caution given the current bearish technical signals and recent price decline. The downgrade from Strong Sell to Sell indicates some stabilisation but not a definitive turnaround. The absence of strong RSI signals suggests the stock is not yet oversold, and further downside cannot be ruled out. However, the stock’s robust long-term returns and sector positioning may offer value for patient investors willing to weather short-term volatility.
Monitoring key technical indicators such as MACD and moving averages will be crucial in the coming weeks to identify any potential reversal or continuation of the bearish trend. Additionally, sector developments and broader market conditions will influence the stock’s trajectory.
Summary of Technical Signals:
- MACD: Weekly Bearish, Monthly Mildly Bearish
- RSI: No clear signal on weekly and monthly charts
- Bollinger Bands: Mildly Bearish on weekly and monthly
- Moving Averages: Daily Bearish, price below key averages
- KST: Weekly Bearish, Monthly Mildly Bearish
- Dow Theory: Weekly Mildly Bullish, Monthly No Trend
Given these mixed but predominantly negative technical signals, investors should weigh the risks carefully and consider alternative opportunities within the Garments & Apparels sector or broader market.
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