Menon Bearings Ltd Faces Mixed Technical Signals Amid Price Momentum Shift

Technical Trend Overview and Price Movement

As of 30 Jan 2026, Menon Bearings Ltd’s stock price closed at ₹116.00, down 4.53% from the previous close of ₹121.50. The intraday range saw a high of ₹122.30 and a low of ₹116.00, indicating increased volatility. The stock remains well below its 52-week high of ₹145.20 but comfortably above its 52-week low of ₹73.00, suggesting a recovery phase albeit with recent downward pressure.

The technical trend has shifted from mildly bullish to mildly bearish, signalling a cautious stance among traders and investors. This shift is corroborated by the daily moving averages which currently indicate a mildly bearish trend, reflecting short-term selling pressure. The stock’s momentum indicators present a nuanced picture, with weekly and monthly signals diverging in their outlook.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator shows a split view: the weekly MACD remains mildly bullish, suggesting some short-term positive momentum, while the monthly MACD has turned bearish, indicating longer-term weakness. This divergence implies that while there may be short bursts of buying interest, the broader trend is losing strength.

The Know Sure Thing (KST) indicator, which tracks momentum over multiple timeframes, remains mildly bullish on both weekly and monthly charts. This suggests that despite recent price declines, underlying momentum has not fully deteriorated, offering a potential cushion against further downside.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no clear signal, hovering in neutral territory. This lack of directional RSI momentum indicates that the stock is neither overbought nor oversold, which may contribute to sideways price action in the near term.

Bollinger Bands present a more bearish outlook, with weekly bands signalling bearishness and monthly bands mildly bearish. The stock price has recently touched the lower band on the weekly chart, often interpreted as a sign of increased selling pressure or potential support. However, the mild bearishness on the monthly bands suggests that the stock could face resistance in regaining upward momentum.

Volume and On-Balance Volume (OBV) Trends

Volume analysis reveals a lack of clear trend on the weekly On-Balance Volume (OBV) indicator, indicating indecision among market participants. Conversely, the monthly OBV is bullish, signalling accumulation over the longer term. This divergence between weekly and monthly volume trends suggests that institutional investors may be accumulating shares despite short-term selling by retail traders.

Moving Averages and Dow Theory Signals

Daily moving averages have turned mildly bearish, with the stock price trading below its short-term averages, signalling potential resistance ahead. This is a cautionary sign for traders looking for a sustained rally in the near term.

However, Dow Theory assessments on both weekly and monthly charts remain mildly bullish, indicating that the primary trend may still be intact despite recent corrections. This suggests that while short-term momentum has weakened, the longer-term uptrend could resume if key support levels hold.

Comparative Performance Against Sensex

Menon Bearings Ltd’s returns relative to the Sensex reveal a mixed performance. Over the past week, the stock declined by 7.94% while the Sensex gained 0.31%, reflecting short-term underperformance. However, over the past month and year-to-date periods, Menon Bearings outperformed the Sensex with returns of 9.95% and 8.56% respectively, compared to Sensex declines of 2.51% and 3.11%.

Longer-term returns show a more tempered picture. Over one year, Menon Bearings delivered 5.74% compared to the Sensex’s 7.88%. Over three years, the stock returned 16.12%, lagging the Sensex’s 39.16%. Yet, over five and ten years, Menon Bearings outpaced the Sensex with returns of 109.58% and 124.15% respectively, versus 78.38% and 231.98% for the benchmark. This highlights the stock’s strong recovery and growth potential over extended periods despite recent volatility.

Mojo Score and Rating Update

MarketsMOJO has upgraded Menon Bearings Ltd’s Mojo Grade from Sell to Hold as of 27 Jan 2026, reflecting an improved outlook amid the recent technical shifts. The current Mojo Score stands at 51.0, indicating a neutral stance with neither strong buy nor sell signals dominating. The Market Cap Grade remains at 4, consistent with the company’s mid-tier market capitalisation within the auto components sector.

This upgrade suggests that while the stock faces short-term headwinds, it retains potential for recovery and should be monitored closely for further technical developments. Investors are advised to weigh the mildly bearish technical signals against the company’s fundamental strengths and sector dynamics before making allocation decisions.

Outlook and Investor Considerations

Menon Bearings Ltd’s recent technical momentum shift to mildly bearish territory calls for cautious optimism. The mixed signals from MACD, RSI, and moving averages indicate that the stock is at a critical juncture. Short-term traders may find opportunities in the weekly bullish momentum and monthly accumulation signals, but the prevailing daily bearish trend and Bollinger Band pressures suggest potential resistance ahead.

Long-term investors should consider the company’s historical outperformance over five and ten years, balanced against the recent volatility and sector challenges. The auto components industry continues to face cyclical pressures, and Menon Bearings’ technical indicators reflect this uncertainty.

In summary, Menon Bearings Ltd currently warrants a Hold rating, with a watchful eye on technical developments and broader market conditions. A sustained break above the daily moving averages and monthly MACD turning bullish could signal a return to stronger momentum, while failure to hold key support levels may lead to further downside.

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