Price Movement and Market Context
On 2 January 2026, Menon Bearings closed at ₹113.00, marking a significant 5.76% increase from the previous close of ₹106.85. The stock’s intraday range was between ₹105.35 and ₹113.00, reflecting heightened volatility. This price movement contrasts with the broader market, as the Sensex showed a marginal decline of 0.04% year-to-date, underscoring Menon Bearings’ relative outperformance in the short term.
However, the stock remains below its 52-week high of ₹145.20 and well above its 52-week low of ₹73.00, indicating a wide trading range over the past year. The company’s market capitalisation grade stands at 4, reflecting its micro-cap status within the Auto Components & Equipments sector.
Technical Trend Shift and Indicator Analysis
Menon Bearings’ technical trend has shifted from mildly bearish to bearish, signalling increased downside risk in the near term. The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly charts, suggesting that the stock’s momentum is still under pressure despite recent gains. The daily moving averages also reinforce this bearish stance, with the stock price trading below key averages, indicating a lack of sustained upward momentum.
The Relative Strength Index (RSI) on weekly and monthly timeframes currently shows no clear signal, hovering in neutral territory. This suggests that the stock is neither overbought nor oversold, leaving room for potential directional moves but no definitive momentum bias.
Bollinger Bands on weekly and monthly charts are mildly bearish, reflecting moderate downward pressure with the price approaching the lower band on some occasions. This technical setup often indicates increased volatility and potential for further downside if the bearish trend persists.
Contrasting Oscillators and Volume Indicators
The Know Sure Thing (KST) indicator presents a mixed view: bearish on the weekly chart but mildly bullish on the monthly chart. This divergence suggests that while short-term momentum remains weak, there could be some underlying strength developing over a longer horizon. Similarly, Dow Theory analysis shows a mildly bullish trend on the weekly timeframe but no clear trend on the monthly scale, adding to the complexity of the technical outlook.
On-Balance Volume (OBV) indicators show no discernible trend on either weekly or monthly charts, indicating that volume flows are not strongly supporting either buying or selling pressure at present. This lack of volume confirmation often weakens the conviction behind price moves.
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Comparative Returns and Long-Term Performance
Examining Menon Bearings’ returns relative to the Sensex reveals a nuanced performance profile. Over the past week, the stock has surged 5.66%, outperforming the Sensex’s decline of 0.26%. Similarly, the one-month return stands at 4.00% against the Sensex’s negative 0.53%. Year-to-date, Menon Bearings has gained 5.76%, marginally ahead of the Sensex’s flat performance.
However, over longer periods, the stock has lagged the benchmark. The one-year return is negative at -4.24%, compared to the Sensex’s robust 8.51% gain. Over three years, Menon Bearings has delivered 15.07%, significantly below the Sensex’s 40.02%. Despite this, the five-year return of 128.28% notably surpasses the Sensex’s 77.96%, highlighting periods of strong outperformance. The ten-year return of 82.26% remains well behind the Sensex’s 225.63%, reflecting challenges in sustaining growth over the very long term.
Mojo Score and Analyst Ratings
Menon Bearings currently holds a Mojo Score of 31.0, categorised as a Sell rating. This represents an upgrade from a previous Strong Sell rating as of 31 December 2025, signalling a slight improvement in the company’s technical and fundamental outlook. The Mojo Grade change indicates that while the stock remains under pressure, some stabilisation or potential for recovery is being recognised by analysts.
The company’s micro-cap status and sector-specific challenges in Auto Components & Equipments contribute to the cautious stance. Investors should weigh the mixed technical signals carefully, considering both the recent price momentum and the broader market context.
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Investor Takeaway and Outlook
Menon Bearings Ltd’s recent price momentum and technical indicator shifts suggest a cautious approach for investors. The bearish MACD and moving averages, combined with mildly bearish Bollinger Bands, point to potential downside risks in the near term. However, the absence of strong volume trends and neutral RSI readings leave room for volatility and possible short-term rallies.
Longer-term oscillators such as KST and Dow Theory provide some mild bullish signals, indicating that the stock may find support or consolidation before any sustained upward move. Investors should monitor these indicators closely alongside fundamental developments in the Auto Components & Equipments sector.
Given the mixed signals and the company’s micro-cap nature, Menon Bearings may be more suitable for risk-tolerant investors who can navigate technical fluctuations. Those seeking more stable or higher-rated opportunities in the sector might consider alternative stocks with stronger technical and fundamental profiles.
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