Key Events This Week
Jan 19: Stock opens at Rs.7,655.70, down 2.97%
Jan 22: Death Cross formation signals bearish trend
Jan 23: Bearish momentum confirmed amid mixed technical signals
Jan 23: Week closes at Rs.7,310.00, down 0.31% on the day
Monday, 19 January: Weak Start Amid Broader Market Decline
The week began on a negative note for Lakshmi Mills, with the stock closing at Rs.7,655.70, down 2.97% from the previous Friday’s close of Rs.7,889.95. This decline was sharper than the Sensex’s 0.49% fall to 36,650.97, reflecting early selling pressure on the stock. The low trading volume of 7 lakh shares suggested limited buyer interest amid a broader market downturn.
Tuesday, 20 January: Continued Downtrend with Elevated Volume
On 20 January, Lakshmi Mills’ stock price fell further by 1.97% to Rs.7,505.05, underperforming the Sensex’s sharper 1.82% decline to 35,984.65. The volume surged to 193 lakh shares, indicating increased selling activity. The persistent weakness aligned with the stock’s underperformance relative to the benchmark, signalling growing bearish sentiment.
Wednesday, 21 January: Sharpest Drop of the Week
The stock suffered its steepest daily loss on 21 January, dropping 3.08% to Rs.7,273.60, while the Sensex declined by 0.47% to 35,815.26. The volume rose further to 277 lakh shares, confirming intensified selling pressure. This marked the third consecutive day of losses, underscoring the deteriorating technical outlook ahead of the key Death Cross event.
Thursday, 22 January: Death Cross Formation Spurs Technical Concerns
On 22 January, Lakshmi Mills bucked the downward trend with a 3.13% intraday gain, closing at Rs.7,501.15. This rebound outpaced the Sensex’s 0.76% rise to 36,088.66. However, this positive price action coincided with the formation of a Death Cross, where the 50-day moving average crossed below the 200-day moving average, signalling a bearish trend ahead. Despite the short-term bounce, the technical signal raised caution about medium to long-term momentum deterioration.
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Friday, 23 January: Bearish Momentum Confirmed Amid Mixed Signals
The week concluded with Lakshmi Mills closing at Rs.7,310.00, down 2.55% on the day and 7.35% for the week. The Sensex also declined by 1.33% to 35,609.90. Despite an intraday high of Rs.7,548.55, the stock failed to sustain gains, reflecting persistent bearish momentum. Technical indicators such as the MACD and Know Sure Thing (KST) oscillators confirmed a bearish trend on weekly charts, while the Relative Strength Index (RSI) remained neutral. The monthly Bollinger Bands showed mild bullishness, suggesting some longer-term support, but the overall outlook remained cautious.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-19 | Rs.7,655.70 | -2.97% | 36,650.97 | -0.49% |
| 2026-01-20 | Rs.7,505.05 | -1.97% | 35,984.65 | -1.82% |
| 2026-01-21 | Rs.7,273.60 | -3.08% | 35,815.26 | -0.47% |
| 2026-01-22 | Rs.7,501.15 | +3.13% | 36,088.66 | +0.76% |
| 2026-01-23 | Rs.7,310.00 | -2.55% | 35,609.90 | -1.33% |
Key Takeaways
Bearish Technical Signals: The formation of the Death Cross on 22 January marked a significant bearish technical development, indicating weakening momentum and a potential downtrend. This was reinforced by bearish MACD and KST indicators on weekly charts.
Underperformance vs Sensex: Lakshmi Mills declined 7.35% over the week, more than double the Sensex’s 3.31% fall, highlighting relative weakness amid broader market volatility.
Mixed Momentum Indicators: While short-term indicators such as Bollinger Bands and RSI showed some neutral to mildly bullish signals on monthly charts, the dominant trend remains negative, suggesting caution.
Volume Trends: Increasing volumes during the midweek declines pointed to stronger selling pressure, while the rebound on 22 January was accompanied by moderate volume, indicating a technical bounce rather than a sustained reversal.
Fundamental Challenges: The stock’s negative P/E ratio and micro-cap status add to the risk profile, with MarketsMOJO assigning a Strong Sell rating and a low Mojo Score of 29.0, reflecting deteriorating fundamentals and technical outlook.
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Conclusion
The week ending 23 January 2026 was a difficult period for Lakshmi Mills Company Ltd, with the stock falling sharply and technical indicators signalling a bearish trend. The Death Cross formation and confirmation of bearish momentum through multiple oscillators suggest that the stock may face further pressure in the near term. Despite some neutral monthly signals, the overall technical and fundamental landscape advises caution. Investors should monitor key support levels and volume trends closely, as the stock remains vulnerable amid sector challenges and broader market volatility.
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