Menon Bearings Ltd Faces Mildly Bearish Momentum Amid Technical Shifts

Price Movement and Market Context

On 12 February 2026, Menon Bearings closed at ₹117.25, down 3.97% from the previous close of ₹122.10. The stock traded within a range of ₹117.25 to ₹123.90 during the day, remaining well below its 52-week high of ₹145.20 but comfortably above the 52-week low of ₹73.00. This recent decline contrasts with the broader market, where the Sensex gained 0.50% over the past week, highlighting some sector-specific or stock-specific pressures.

Over longer periods, Menon Bearings has outperformed the Sensex, delivering a 1-year return of 11.45% compared to the Sensex’s 10.41%, and a 5-year return of 99.24% versus the Sensex’s 63.46%. However, the 3-year return of 13.50% lags behind the Sensex’s 38.81%, signalling some recent underperformance relative to the benchmark.

Technical Trend Shift: From Sideways to Mildly Bearish

The technical trend for Menon Bearings has shifted from a sideways pattern to a mildly bearish stance. This change is corroborated by the daily moving averages, which currently indicate a mildly bearish signal. The stock’s price has slipped below key short-term moving averages, suggesting downward pressure in the near term.

Meanwhile, the weekly and monthly charts present a more nuanced picture. The weekly MACD (Moving Average Convergence Divergence) remains mildly bullish, indicating some underlying positive momentum on a shorter timeframe. Conversely, the monthly MACD has turned bearish, signalling that longer-term momentum is weakening. This divergence between weekly and monthly MACD readings suggests that while short-term traders might find some buying opportunities, the broader trend is less favourable.

RSI and Bollinger Bands: Mixed Signals

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This lack of momentum in RSI implies that the stock is neither overbought nor oversold, which could mean a period of consolidation or indecision among investors.

Bollinger Bands add further complexity. On the weekly timeframe, the bands are bullish, indicating that price volatility is supporting upward momentum. However, on the monthly scale, the bands are sideways, reflecting a lack of directional conviction over the longer term. This mixed behaviour suggests that while short-term volatility may favour bulls, the stock’s longer-term price range remains uncertain.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator is mildly bullish on both weekly and monthly charts, hinting at some positive momentum building beneath the surface. However, Dow Theory analysis on the weekly chart is mildly bearish, with no clear trend established on the monthly chart. This divergence underscores the current technical ambiguity.

On-Balance Volume (OBV) is mildly bullish on the weekly timeframe but shows no trend on the monthly scale. This suggests that recent volume patterns support some accumulation, but the longer-term volume trend remains inconclusive.

Mojo Score and Grade Downgrade

Menon Bearings’ Mojo Score currently stands at 37.0, reflecting a cautious outlook. The Mojo Grade was downgraded from Hold to Sell on 1 February 2026, signalling a deterioration in the stock’s overall technical and fundamental quality as assessed by MarketsMOJO. The downgrade is consistent with the mildly bearish technical trend and recent price weakness.

The company’s Market Cap Grade is 4, indicating a mid-sized market capitalisation relative to its peers in the Auto Components & Equipments sector. This size factor may influence liquidity and investor interest, especially in volatile market conditions.

Comparative Performance and Sector Context

While Menon Bearings has delivered strong long-term returns, its recent weekly and monthly returns have lagged the Sensex. Over the past week, the stock declined by 3.18%, whereas the Sensex gained 0.50%. Over the past month, Menon Bearings was down 0.38%, compared to a 0.79% rise in the Sensex. This relative underperformance may reflect sector-specific challenges or company-specific factors impacting investor sentiment.

Investors should also consider the broader Auto Components & Equipments sector dynamics, which can be influenced by factors such as raw material costs, automotive demand cycles, and regulatory changes. Menon Bearings’ technical indicators suggest a cautious stance amid these uncertainties.

Investor Takeaway and Outlook

Menon Bearings Ltd’s current technical profile presents a mixed picture. The mildly bearish daily moving averages and monthly MACD suggest caution, while weekly indicators such as MACD, KST, and OBV offer some short-term bullish hints. The neutral RSI and sideways Bollinger Bands on the monthly chart further indicate a period of consolidation or indecision.

Given the downgrade to a Sell grade and the recent price decline, investors may want to exercise prudence and monitor the stock closely for confirmation of trend direction. Those with a longer-term horizon might consider the company’s historical outperformance over five and ten years, but should remain aware of the current technical headwinds.

In the context of the Auto Components & Equipments sector, Menon Bearings’ performance and technical signals suggest that selective exposure and portfolio diversification remain prudent strategies. Monitoring key technical levels, such as support near ₹117 and resistance around ₹124, will be critical for assessing potential entry or exit points.

Summary of Technical Indicators

• Daily Moving Averages: Mildly Bearish
• Weekly MACD: Mildly Bullish
• Monthly MACD: Bearish
• RSI (Weekly & Monthly): Neutral
• Bollinger Bands Weekly: Bullish; Monthly: Sideways
• KST Weekly & Monthly: Mildly Bullish
• Dow Theory Weekly: Mildly Bearish; Monthly: No Trend
• OBV Weekly: Mildly Bullish; Monthly: No Trend

These mixed signals underscore the importance of a balanced approach, combining technical analysis with fundamental insights and sector trends.

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