Manorama Industries Ltd Faces Bearish Momentum Amid Technical Downgrade

Price Movement and Market Context

On 3 Feb 2026, Manorama Industries closed at ₹1,301.65, down 4.72% from the previous close of ₹1,366.10. The stock traded within a range of ₹1,293.70 to ₹1,366.05 during the day, indicating heightened volatility. Despite this short-term weakness, the stock remains well above its 52-week low of ₹736.15, though significantly below its 52-week high of ₹1,774.00. This wide trading band underscores the stock’s recent fluctuations amid broader market uncertainties.

Comparatively, Manorama Industries has outperformed the Sensex over longer horizons. The stock delivered a robust 25.16% return over the past year versus the Sensex’s 5.37%, and an impressive 866.26% gain over five years compared to the Sensex’s 64.00%. However, more recent returns have been mixed, with a 1-month decline of 6.24% against the Sensex’s 4.78% drop, and a year-to-date loss of 2.43% versus the Sensex’s 4.17% fall, signalling some near-term pressure.

Technical Indicators Signal Bearish Shift

The technical landscape for Manorama Industries has shifted notably. The Moving Average Convergence Divergence (MACD) indicator, a key momentum gauge, remains bearish on the weekly chart and mildly bearish on the monthly chart. This suggests that downward momentum is entrenched in the short term, with some lingering caution over the longer term.

The Relative Strength Index (RSI), which measures overbought or oversold conditions, currently shows no clear signal on both weekly and monthly timeframes. This neutral RSI reading indicates that the stock is neither oversold nor overbought, leaving room for further directional movement based on other factors.

Bollinger Bands, which track price volatility and potential reversal points, present a mixed picture. Weekly Bollinger Bands are bearish, reflecting price pressure near the lower band, while monthly bands are mildly bullish, hinting at possible longer-term support. This divergence suggests that while short-term momentum is weak, the stock may find some stability over a broader timeframe.

Daily moving averages reinforce the bearish outlook, with the stock trading below key averages, signalling downward pressure. The Know Sure Thing (KST) indicator, which aggregates multiple momentum signals, is bearish on the weekly chart and mildly bearish on the monthly chart, aligning with the MACD’s directional bias.

Other technical tools such as Dow Theory, On-Balance Volume (OBV), and volume-based indicators show no definitive trend on weekly or monthly charts, indicating a lack of strong conviction from market participants in either direction.

Mojo Grade Downgrade Reflects Caution

MarketsMOJO has downgraded Manorama Industries’ Mojo Grade from Buy to Hold as of 31 Dec 2025, reflecting the deteriorating technical outlook and recent price weakness. The current Mojo Score stands at 50.0, indicating a neutral stance. The Market Cap Grade remains at 3, suggesting a mid-tier market capitalisation within the FMCG sector.

This downgrade signals that while the company’s fundamentals and long-term growth prospects remain intact, investors should exercise caution given the recent technical deterioration and price momentum shifts. The Hold rating advises monitoring for further confirmation before committing to new positions.

Sector and Industry Context

Operating within the FMCG sector, Manorama Industries faces competitive pressures and evolving consumer trends. The sector itself has shown resilience but is currently navigating inflationary headwinds and supply chain challenges. Against this backdrop, the stock’s technical weakness may partly reflect broader sector rotation and profit-taking by investors.

Investors should also consider the stock’s relative performance within the FMCG space and its thematic list memberships on MarketsMOJO, which provide additional context on peer comparisons and sector dynamics.

Investor Takeaway and Outlook

Manorama Industries Ltd’s recent technical deterioration, highlighted by bearish MACD and moving averages, alongside a downgrade to Hold, suggests that investors should approach the stock with caution in the near term. The absence of strong RSI signals and mixed Bollinger Band readings imply that the stock could experience continued volatility before establishing a clear trend.

Long-term investors may find comfort in the stock’s strong multi-year returns and sector positioning, but short-term traders should be wary of the current bearish momentum. Monitoring key support levels near ₹1,300 and watching for any reversal signals in momentum indicators will be critical in assessing the stock’s next directional move.

Given the current technical profile, a conservative approach with close attention to market developments and sector trends is advisable. Investors may also consider exploring alternative FMCG stocks or other sectors with more favourable technical setups as suggested by portfolio optimisation tools.

Summary of Technical Ratings

• MACD: Weekly Bearish, Monthly Mildly Bearish
• RSI: Neutral on Weekly and Monthly
• Bollinger Bands: Weekly Bearish, Monthly Mildly Bullish
• Moving Averages: Daily Bearish
• KST: Weekly Bearish, Monthly Mildly Bearish
• Dow Theory & OBV: No clear trend

These indicators collectively point to a cautious stance, with a bias towards bearish momentum in the short term.

Price and Return Snapshot

Current Price: ₹1,301.65
52-Week High: ₹1,774.00
52-Week Low: ₹736.15
1 Week Return: +18.83% (Sensex +0.16%)
1 Month Return: -6.24% (Sensex -4.78%)
Year-to-Date Return: -2.43% (Sensex -4.17%)
1 Year Return: +25.16% (Sensex +5.37%)
3 Year Return: +563.4% (Sensex +36.26%)
5 Year Return: +866.26% (Sensex +64.00%)

These figures highlight the stock’s strong long-term performance despite recent short-term weakness.

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