Maithan Alloys Ltd. Technical Momentum Shifts Amid Bearish Signals

Technical Trend Overview and Price Movement

On 20 Feb 2026, Maithan Alloys closed at ₹1,027.65, down 3.23% from the previous close of ₹1,061.95. The intraday range saw a high of ₹1,074.95 and a low of ₹1,018.85, indicating increased volatility. The stock remains below its 52-week high of ₹1,265.00 but comfortably above the 52-week low of ₹834.05. This price action coincides with a technical trend shift from sideways to mildly bearish, suggesting that the recent upward momentum has weakened.

MACD Signals: Divergent Weekly and Monthly Perspectives

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bullish, indicating some underlying positive momentum in the short term. However, the monthly MACD has turned bearish, signalling that the longer-term trend is under pressure. This divergence suggests that while short-term traders may find some buying opportunities, the broader trend warrants caution.

RSI and Bollinger Bands: Neutral to Bearish Outlook

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This lack of momentum confirmation implies that the stock is neither overbought nor oversold, leaving room for further directional movement. Meanwhile, Bollinger Bands indicate a sideways pattern on the weekly chart but a mildly bearish stance on the monthly chart, reinforcing the notion of a potential downtrend developing over the medium term.

Moving Averages and KST: Mixed Technical Signals

Daily moving averages have turned mildly bearish, with the stock price trading below key averages, signalling short-term weakness. Conversely, the Know Sure Thing (KST) indicator shows a mildly bullish trend on the weekly chart and a bullish trend on the monthly chart. This contrast highlights a technical tug-of-war, where momentum oscillators suggest some strength, but price-based averages indicate caution.

Volume and Dow Theory Analysis

On-Balance Volume (OBV) is mildly bullish on the weekly timeframe, suggesting that volume supports the recent price moves. However, the monthly OBV shows no clear trend, indicating a lack of conviction among longer-term investors. Dow Theory analysis aligns with these findings, showing a mildly bullish weekly trend but no discernible monthly trend, further emphasising the mixed technical landscape.

Comparative Returns: Maithan Alloys vs. Sensex

Examining Maithan Alloys’ returns relative to the Sensex reveals a mixed performance. Over the past week, the stock declined by 4.42%, underperforming the Sensex’s 1.41% drop. The one-month return also lagged, with a 6.52% fall compared to the Sensex’s 0.90% decline. However, year-to-date, Maithan Alloys has posted a modest gain of 0.76%, outperforming the Sensex’s 3.19% loss.

Longer-term returns paint a more favourable picture for Maithan Alloys. Over one year, the stock gained 14.58%, surpassing the Sensex’s 8.64%. The five-year return stands at 68.49%, slightly ahead of the Sensex’s 62.11%. Remarkably, over a decade, Maithan Alloys has delivered a staggering 1,075.80% return, vastly outperforming the Sensex’s 247.96%. This long-term outperformance underscores the company’s growth potential despite recent technical headwinds.

Mojo Score and Grade Update

MarketsMOJO’s proprietary scoring system currently assigns Maithan Alloys a Mojo Score of 34.0, categorising it as a Sell. This represents a downgrade from the previous Hold rating issued on 14 Feb 2026. The Market Cap Grade remains low at 3, reflecting the company’s relatively modest market capitalisation within the ferrous metals sector. The downgrade aligns with the recent technical deterioration and price weakness, signalling caution for investors.

Sector Context and Industry Positioning

Operating within the ferrous metals industry, Maithan Alloys faces sectoral headwinds including fluctuating raw material costs and global demand uncertainties. The sector has seen mixed technical trends, with some peers maintaining stronger momentum. Maithan’s current technical signals suggest it is lagging behind sector leaders, which may prompt investors to reassess their exposure.

Investor Takeaway and Outlook

Maithan Alloys’ recent technical parameter changes highlight a cautious environment for investors. The shift to a mildly bearish trend, combined with a downgrade in Mojo Grade to Sell, suggests that the stock may face further pressure in the near term. While short-term indicators like weekly MACD and KST show some bullish undertones, the dominant monthly bearish signals and weakening moving averages warrant prudence.

Investors should closely monitor key support levels near ₹1,000 and watch for confirmation of trend reversals through volume and momentum indicators. Given the stock’s historical outperformance over longer horizons, patient investors might consider accumulating on sustained technical improvements. However, those seeking immediate momentum plays may prefer to explore higher-rated alternatives within the ferrous metals sector or broader market.

In summary, Maithan Alloys currently presents a mixed technical picture with a tilt towards caution. The interplay of short-term bullish signals against a backdrop of longer-term bearish trends underscores the importance of a disciplined, data-driven approach to portfolio allocation in this stock.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →