Menon Bearings Ltd Technical Momentum Shifts Amid Mixed Indicator Signals

Technical Trend Overview: From Sideways to Mildly Bearish

Recent technical assessments indicate that Menon Bearings has transitioned from a sideways trading pattern to a mildly bearish trend. This shift is underscored by the daily moving averages, which currently signal a mildly bearish stance. The stock closed at ₹117.10 on 16 Feb 2026, down 1.93% from the previous close of ₹119.40, with intraday lows touching ₹117.10 and highs at ₹119.40. This price movement suggests increasing selling pressure, although the decline remains moderate.

MACD and Momentum Indicators: Conflicting Signals

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD remains mildly bullish, hinting at underlying positive momentum that could support a rebound. However, 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 opportunities, longer-term investors should exercise caution.

RSI and Bollinger Bands: Neutral to Mildly Bearish Outlook

The Relative Strength Index (RSI) on both weekly and monthly charts currently offers no definitive signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, leaving room for directional movement based on other factors. Meanwhile, Bollinger Bands show a bullish stance on the weekly chart, reflecting price support near the lower band and potential for a short-term bounce. Conversely, the monthly Bollinger Bands are mildly bearish, consistent with the longer-term MACD outlook.

Other Technical Metrics: KST, Dow Theory, and OBV

The Know Sure Thing (KST) oscillator is mildly bullish on both weekly and monthly timeframes, suggesting some positive momentum building beneath the surface. However, Dow Theory analysis reveals a mildly bearish trend on the weekly chart and no clear trend on the monthly chart, reinforcing the mixed technical environment. On-Balance Volume (OBV) is mildly bullish weekly but shows no trend monthly, indicating that volume-based momentum is currently more supportive in the short term.

Price Performance Relative to Sensex

Examining Menon Bearings’ returns relative to the Sensex provides additional context. Over the past week, the stock outperformed the benchmark with a 1.04% gain versus the Sensex’s 1.14% decline. However, over the last month, Menon Bearings underperformed, falling 7.69% compared to the Sensex’s 1.20% drop. Year-to-date, the stock has delivered a robust 9.59% return, outperforming the Sensex’s negative 3.04%. Over one year, Menon Bearings returned 10.68%, slightly ahead of the Sensex’s 8.52%. Longer-term returns over three and five years show underperformance relative to the Sensex, with 12.16% versus 36.73% and 99.66% versus 60.30%, respectively. Over ten years, however, the Sensex leads with a 259.46% gain compared to Menon Bearings’ 181.04%.

Mojo Score and Grade: Downgrade Reflects Caution

Menon Bearings’ Mojo Score currently stands at 35.0, reflecting a Sell rating, a downgrade from the previous Hold grade assigned on 1 Feb 2026. This downgrade signals increased caution from analysts, likely influenced by the mixed technical signals and recent price weakness. The company’s Market Cap Grade is 4, indicating a mid-tier market capitalisation within its sector. The downgrade suggests that investors should be wary of potential downside risks in the near term, despite some short-term bullish technical indicators.

Moving Averages and Daily Price Action

Daily moving averages have shifted to a mildly bearish stance, reinforcing the recent technical trend change. The stock’s current price of ₹117.10 is well below its 52-week high of ₹145.20 but comfortably above the 52-week low of ₹73.00, indicating a wide trading range over the past year. The recent decline of nearly 2% on the day reflects some profit-taking or selling pressure, which may continue if broader market conditions remain uncertain.

Sector and Industry Context

Menon Bearings operates within the Auto Components & Equipments sector, a segment that has faced volatility due to fluctuating demand in the automotive industry and supply chain disruptions. The sector’s performance often correlates with broader economic cycles and vehicle production trends. Given the mixed technical signals and the company’s recent downgrade, investors should consider sectoral headwinds alongside company-specific factors when evaluating Menon Bearings.

Investor Takeaway: Balanced Approach Recommended

Menon Bearings Ltd’s current technical landscape is characterised by a blend of mildly bullish and bearish signals across different timeframes. Short-term indicators such as weekly MACD, KST, and OBV suggest some underlying strength, while longer-term monthly indicators and daily moving averages point to caution. The recent downgrade to a Sell rating by MarketsMOJO reflects this cautious stance.

Investors should weigh the stock’s recent underperformance relative to the Sensex over the past month against its outperformance year-to-date and over the past year. The wide 52-week trading range also indicates volatility that could present both risks and opportunities depending on market developments.

Given the mixed technical signals and sectoral challenges, a balanced approach is advisable. Short-term traders might capitalise on the mildly bullish weekly momentum, while long-term investors should monitor for confirmation of trend direction before increasing exposure.

Conclusion

Menon Bearings Ltd is navigating a complex technical environment with momentum indicators sending mixed messages. The downgrade to a Sell Mojo Grade underscores the need for caution, even as some weekly indicators hint at potential short-term recovery. Investors should remain vigilant, closely monitoring technical developments and sector dynamics to make informed decisions in this evolving landscape.

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