Key Events This Week
29 Dec: Upgrade to Buy on strong financials and technical improvements
30 Dec: Shift to mildly bearish technical momentum
31 Dec: Death Cross formation signalling potential bearish trend
1 Jan: Downgrade to Hold amid technical weakness despite strong fundamentals
2 Jan: Stock closes strong at ₹1,388.30, up 4.20%
29 December 2025: Upgrade to Buy on Strong Financials and Technical Improvements
Manorama Industries began the week with a significant upgrade by MarketsMOJO from Hold to Buy, reflecting its outstanding financial performance and improving technical outlook. The company reported net sales of ₹323.31 crores in Q2 FY25-26, a 42.10% annualised increase, alongside a 72.60% surge in operating profit. Management efficiency remained robust with a ROCE of 17.22% and an operating profit to interest ratio of 10.08 times.
Despite a relatively expensive valuation, the stock trades at a discount to peers on historical metrics, supported by a low PEG ratio of 0.2 due to a 194.5% profit increase over the past year. The technical trend shifted from sideways to mildly bullish, with daily moving averages and Dow Theory weekly indicators signalling potential upward momentum. However, some indicators such as weekly MACD and Bollinger Bands showed mixed or bearish signals, suggesting cautious optimism.
On 29 December, the stock closed at ₹1,301.10, down 1.12%, while the Sensex fell 0.41%, indicating relative resilience despite the slight dip.
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30 December 2025: Shift to Mildly Bearish Technical Momentum
The following day, Manorama Industries experienced a technical shift from mildly bullish to mildly bearish momentum. The stock closed at ₹1,305.10, up 0.31%, while the Sensex was nearly flat, down 0.01%. Despite the positive close, technical indicators such as the weekly MACD and KST oscillators turned bearish, signalling increasing short-term selling pressure.
Daily moving averages remained mildly bullish, but Bollinger Bands showed bearish weekly signals contrasting with bullish monthly trends. The Relative Strength Index (RSI) stayed neutral, indicating no overbought or oversold conditions. On-Balance Volume (OBV) was mildly bullish weekly but bearish monthly, suggesting mixed volume support. This complex technical picture suggested a consolidation phase rather than a clear trend reversal.
31 December 2025: Death Cross Formation Signals Potential Bearish Trend
On the last trading day of 2025, Manorama Industries formed a Death Cross as its 50-day moving average crossed below the 200-day moving average, a classic bearish technical signal. Despite this, the stock closed strongly at ₹1,334.10, up 2.22%, outperforming the Sensex’s 0.83% gain. The intraday range was ₹1,311.00 to ₹1,335.95, reflecting active trading interest.
This technical development raised concerns about medium-term trend deterioration, supported by bearish weekly MACD and KST indicators. The stock’s valuation remained elevated with a P/E ratio of 44.93, above the FMCG sector average of 35.81, suggesting limited near-term upside. However, the company’s long-term returns remained exceptional, with five-year gains near 981% versus Sensex’s 78%.
1 January 2026: Downgrade to Hold Amid Technical Weakness Despite Strong Fundamentals
MarketsMOJO downgraded Manorama Industries from Buy to Hold on 31 December 2025, reflecting emerging technical headwinds despite robust fundamentals. The company continued to demonstrate strong operational quality, with a ROCE of 17.22% and record quarterly net sales of ₹323.31 crores. Profit growth remained impressive at 194.5% year-on-year.
However, technical indicators deteriorated further. The weekly MACD and KST oscillators were bearish, daily moving averages turned bearish, and Bollinger Bands showed mixed signals with weekly bearishness. Institutional investor participation declined by 1.06% to 6.97%, signalling some caution among sophisticated market participants.
The stock closed at ₹1,332.35, down 0.13%, while the Sensex gained 0.14%. This downgrade highlighted the tension between strong financials and weakening technical momentum, suggesting a period of consolidation or correction ahead.
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2 January 2026: Strong Close at ₹1,388.30 Amid Mixed Technical Signals
Manorama Industries ended the week on a strong note, closing at ₹1,388.30, up 4.20% on the day and marking the week’s high. This late surge outpaced the Sensex’s 0.81% gain, reflecting renewed buying interest. The stock traded with high volume of 9,275 shares, indicating robust market participation.
Despite the strong finish, technical momentum remained mixed. The weekly MACD and KST indicators stayed bearish, while monthly Bollinger Bands remained bullish, suggesting longer-term support. Daily moving averages were bearish, signalling caution for short-term traders. The Relative Strength Index (RSI) remained neutral, indicating no extreme price conditions.
Overall, the stock’s performance this week reflected a tug-of-war between strong fundamental growth and technical caution, with the late rally providing some optimism for the near term.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2025-12-29 | Rs.1,301.10 | -1.12% | 37,140.23 | -0.41% |
| 2025-12-30 | Rs.1,305.10 | +0.31% | 37,135.83 | -0.01% |
| 2025-12-31 | Rs.1,334.10 | +2.22% | 37,443.41 | +0.83% |
| 2026-01-01 | Rs.1,332.35 | -0.13% | 37,497.10 | +0.14% |
| 2026-01-02 | Rs.1,388.30 | +4.20% | 37,799.57 | +0.81% |
Key Takeaways
Positive Signals: Manorama Industries demonstrated strong fundamental growth with record quarterly sales and profit expansion, reflected in a significant upgrade to Buy early in the week. The stock outperformed the Sensex by over 4% for the week, closing at a new high of ₹1,388.30. Long-term returns remain exceptional, with five-year gains near 981%.
Cautionary Signals: Technical indicators showed a mixed to bearish trend, highlighted by the formation of a Death Cross and bearish weekly MACD and KST oscillators. The downgrade to Hold reflected these technical headwinds and valuation concerns, with institutional investor participation declining slightly. Daily moving averages turned bearish, signalling potential short-term volatility.
Market Context: The stock’s premium valuation and mixed technical signals suggest a consolidation phase may be underway despite strong fundamentals. Investors should monitor key support levels near ₹1,290 and resistance around ₹1,335 to gauge momentum direction.
Conclusion
Manorama Industries Ltd’s week was characterised by a strong fundamental backdrop and robust price gains, offset by emerging technical caution. The upgrade to Buy early in the week acknowledged the company’s impressive financial performance and improving technical outlook, but the subsequent Death Cross and downgrade to Hold highlighted risks of a medium-term correction or consolidation.
The stock’s late-week rally to ₹1,388.30 demonstrated resilience and renewed buying interest, yet mixed technical signals advise prudence. While the company’s long-term growth story remains compelling, the current environment calls for disciplined risk management and close monitoring of price action. Investors should balance Manorama Industries’ strong fundamentals against the technical headwinds as they navigate the evolving market landscape.
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