Landmark Cars Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Trend Shift and Price Movement

On 20 Feb 2026, Landmark Cars Ltd closed at ₹412.50, down from the previous close of ₹425.55, marking a 3.07% drop. The intraday range saw a high of ₹432.85 and a low of ₹412.50, indicating some volatility but a clear downward bias. The stock remains significantly below its 52-week high of ₹674.70, while comfortably above its 52-week low of ₹306.05. This price action aligns with a broader technical trend change from mildly bearish to outright bearish, signalling increased downside risk in the near term.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed but predominantly negative outlook. On the weekly chart, the MACD remains bearish, confirming the recent downward momentum. The monthly MACD, while mildly bearish, suggests that longer-term momentum is weakening but not yet decisively negative. This divergence between weekly and monthly MACD readings highlights a potential for further short-term declines before any sustained recovery can be expected.

RSI and Overbought/Oversold Conditions

The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no clear signal, hovering in neutral territory. This absence of oversold or overbought conditions suggests that the stock is not yet at an extreme valuation level from a momentum perspective, leaving room for further price movement in either direction. However, the lack of a bullish RSI signal tempers optimism for an imminent rebound.

Moving Averages and Bollinger Bands

Daily moving averages reinforce the bearish stance, with the stock trading below key averages, indicating downward pressure. Bollinger Bands on the weekly chart are bearish, reflecting increased volatility and a tendency for prices to remain near the lower band. The monthly Bollinger Bands are mildly bearish, signalling that while the stock is under pressure, it has not yet reached extreme volatility levels. This technical setup suggests that Landmark Cars Ltd could continue to face resistance at higher price levels in the near term.

Additional Technical Signals: KST, Dow Theory, and OBV

Interestingly, the Know Sure Thing (KST) indicator on the weekly chart is mildly bullish, hinting at some underlying positive momentum that could provide short-term support. Similarly, Dow Theory and On-Balance Volume (OBV) on the weekly timeframe show mildly bullish signals, indicating that accumulation may be occurring despite the prevailing bearish trend. However, these signals are not confirmed on the monthly charts, where no clear trend or volume pattern is evident, suggesting that any bullish momentum is tentative and may not sustain without broader market support.

Comparative Performance Versus Sensex

Landmark Cars Ltd’s recent returns have lagged the benchmark Sensex across multiple timeframes. Over the past week, the stock declined by 3.43%, compared to a 1.41% drop in the Sensex. Over one month, Landmark Cars Ltd gained 4.71%, outperforming the Sensex’s 0.90% decline, but this short-term strength has not translated into longer-term gains. Year-to-date, the stock is down 12.71%, significantly underperforming the Sensex’s 3.19% loss. Over the past year, the stock has fallen 10.33%, while the Sensex rose 8.64%. The three-year performance is particularly stark, with Landmark Cars Ltd down 32.75% against a 35.24% gain for the Sensex, underscoring persistent underperformance in a generally rising market.

Mojo Score and Grade Analysis

MarketsMOJO assigns Landmark Cars Ltd a Mojo Score of 32.0, reflecting weak fundamentals and technicals. The Mojo Grade has been downgraded from Strong Sell to Sell as of 13 Nov 2025, signalling a deterioration in the stock’s outlook. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation that may limit liquidity and investor interest compared to larger peers. This downgrade aligns with the bearish technical signals and recent price weakness, reinforcing a cautious stance among investors.

Industry and Sector Context

Operating within the Automobiles industry and sector, Landmark Cars Ltd faces headwinds from broader market dynamics and sector-specific challenges. The automobile sector has been grappling with supply chain disruptions, fluctuating raw material costs, and shifting consumer preferences towards electric vehicles. These factors, combined with Landmark Cars Ltd’s technical weakness, suggest that the stock may continue to struggle unless there is a significant improvement in operational performance or market sentiment.

Investor Implications and Outlook

For investors, the current technical landscape advises caution. The bearish daily moving averages and weekly MACD suggest that short-term momentum is negative, while the absence of strong RSI signals indicates no immediate oversold bounce. Mildly bullish weekly KST and Dow Theory signals offer some hope for a stabilisation or minor recovery, but these are not yet confirmed on monthly charts. The stock’s underperformance relative to the Sensex over multiple periods further emphasises the need for careful portfolio consideration.

Conclusion

Landmark Cars Ltd’s technical indicators collectively point to a bearish momentum shift, with key signals such as the MACD, moving averages, and Bollinger Bands confirming increased downside risk. While some weekly indicators hint at mild bullishness, these are insufficient to offset the prevailing negative trend. The stock’s recent price decline and underperformance relative to the Sensex reinforce a cautious outlook. Investors should monitor technical developments closely and consider alternative opportunities within the automobile sector or broader market to optimise portfolio returns.

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