Menon Bearings Ltd Faces Mildly Bearish Technical Shift Amid Mixed Momentum Signals

Technical Trend Overview and Price Movement

Menon Bearings Ltd, a player in the Auto Components & Equipments sector, currently trades at ₹117.55, down 1.38% from the previous close of ₹119.20. The stock’s intraday range on 25 Feb 2026 spanned ₹114.00 to ₹118.40, reflecting moderate volatility. Over the past 52 weeks, the share price has oscillated between ₹73.00 and ₹145.20, indicating a wide trading band and potential for both upside and downside movements.

The technical trend has shifted from a sideways pattern to mildly bearish, signalling a subtle change in market sentiment. This transition is corroborated by the daily moving averages, which currently suggest a mildly bearish outlook. The stock’s recent price action, including a 1-week return of -1.05%, slightly outperformed the Sensex’s 1.47% decline, but the 1-month return of -3.65% contrasts sharply with the Sensex’s positive 0.84% gain, highlighting short-term underperformance.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bullish, suggesting some underlying positive momentum in the near term. However, the monthly MACD has turned bearish, indicating that longer-term momentum is weakening. This divergence between weekly and monthly MACD readings points to a potential consolidation phase or a cautious outlook among investors.

Complementing this, the Know Sure Thing (KST) indicator is mildly bullish on both weekly and monthly charts, signalling that momentum may still be present but is not strong enough to decisively reverse the bearish undertone. The On-Balance Volume (OBV) indicator also shows mild bullishness on the weekly timeframe, implying that volume trends are somewhat supportive of price stability in the short term, though the monthly OBV offers no clear trend.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) on both weekly and monthly charts currently provides no definitive signal, hovering in neutral territory. This absence of a clear RSI signal suggests that the stock is neither overbought nor oversold, reinforcing the notion of a consolidating or indecisive market phase.

Bollinger Bands add further complexity: weekly readings are mildly bullish, indicating that price is closer to the upper band and may experience upward pressure in the short term. Conversely, the monthly Bollinger Bands are mildly bearish, signalling that over a longer horizon, the stock may face resistance or downward pressure. This contrast between timeframes underscores the importance of monitoring multiple technical layers before making investment decisions.

Dow Theory and Moving Averages

According to Dow Theory, the weekly trend is mildly bullish, suggesting that the stock’s short-term price movements align with a positive market phase. However, the monthly Dow Theory trend shows no clear direction, reflecting uncertainty in the broader market context. Daily moving averages, meanwhile, have turned mildly bearish, reinforcing the recent shift in momentum and cautioning investors about potential near-term weakness.

Comparative Returns and Market Capitalisation

Menon Bearings Ltd’s performance relative to the Sensex reveals a mixed but generally positive long-term picture. Year-to-date, the stock has delivered a 10.01% return, outperforming the Sensex’s negative 3.51%. Over one year, the stock’s return of 17.43% surpasses the Sensex’s 10.44%, and over five years, the stock has more than doubled with a 102.67% gain compared to the Sensex’s 61.92%. However, over a 10-year horizon, the Sensex’s 256.13% return outpaces Menon Bearings’ 178.50%, indicating that while the company has been a strong performer, broader market indices have delivered superior long-term growth.

The company’s market capitalisation grade stands at 4, reflecting a moderate market cap size within its sector. This positioning may influence liquidity and investor interest, particularly in volatile market conditions.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Menon Bearings Ltd a Mojo Score of 35.0, categorising it with a Sell grade as of 1 Feb 2026, a downgrade from the previous Hold rating. This shift reflects the deteriorating technical outlook and the mixed signals from momentum indicators. The downgrade signals caution for investors, suggesting that the stock may face headwinds in the near term.

Given the mildly bearish daily moving averages and the bearish monthly MACD, alongside neutral RSI readings, the technical landscape advises prudence. Investors should weigh these factors against the company’s solid long-term returns and sector fundamentals before making portfolio decisions.

Outlook and Investment Considerations

Menon Bearings Ltd’s technical indicators present a complex picture. While short-term momentum shows some mild bullishness on weekly MACD, KST, and OBV, the longer-term monthly indicators and daily moving averages suggest a cautious stance. The absence of strong RSI signals and the mixed Bollinger Bands readings further complicate the outlook.

Investors should monitor key support levels near ₹114.00 and resistance around ₹118.40, as these intraday extremes may define the stock’s immediate trajectory. The broader Auto Components & Equipments sector dynamics and macroeconomic factors will also play a crucial role in shaping future price action.

In summary, Menon Bearings Ltd is navigating a transitional phase in its price momentum, with technical indicators signalling a mild bearish tilt in the near term despite pockets of short-term strength. The downgrade to a Sell rating by MarketsMOJO underscores the need for careful analysis and risk management for current and prospective investors.

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