Recent Price Movement and Market Context
On 21 Jan 2026, Menon Bearings closed at ₹121.00, down from the previous close of ₹127.35, marking a significant intraday decline of 4.99%. The stock traded within a range of ₹121.00 to ₹129.20, well below its 52-week high of ₹145.20 but comfortably above the 52-week low of ₹73.00. This volatility reflects investor uncertainty amid mixed technical signals and broader market pressures.
Comparatively, the benchmark Sensex has underperformed Menon Bearings over recent periods, with the stock delivering a 1-month return of +15.07% against the Sensex’s -3.24%, and a year-to-date gain of +13.24% versus the Sensex’s -3.57%. However, over the longer term, the stock’s 1-year return of +1.51% lags the Sensex’s +6.63%, and its 3-year return of +17.88% trails the Sensex’s robust +35.56%. Despite this, Menon Bearings has outpaced the Sensex over 5 and 10 years, with returns of +121.61% and +160.22% respectively, compared to the Sensex’s +65.05% and +241.54%.
Technical Trend Evolution: From Mildly Bullish to Sideways
Technical analysis reveals a nuanced picture. The overall trend has shifted from mildly bullish to sideways, indicating a pause in upward momentum. Weekly MACD remains mildly bullish, suggesting some positive momentum in the near term, but the monthly MACD has turned mildly bearish, signalling caution for longer-term investors.
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This lack of momentum confirmation suggests the stock is neither overbought nor oversold, reinforcing the sideways trend interpretation.
Bollinger Bands provide a more optimistic view, with weekly readings mildly bullish and monthly readings outright bullish. This indicates that price volatility is contained within an upward channel on longer timeframes, potentially supporting a rebound if other indicators align.
Conversely, daily moving averages have turned mildly bearish, reflecting recent price weakness and signalling potential short-term selling pressure. The KST (Know Sure Thing) indicator adds complexity: bearish on the weekly chart but mildly bullish on the monthly, underscoring the mixed signals across time horizons.
Dow Theory analysis finds no clear trend on the weekly scale but notes mild bullishness monthly, while On-Balance Volume (OBV) is neutral weekly but bullish monthly. This divergence between volume and price trends suggests accumulation may be occurring despite recent price softness.
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Mojo Score Upgrade and Market Capitalisation Insights
Reflecting these technical shifts, Menon Bearings’ Mojo Score has improved to 51.0, upgrading its Mojo Grade from Sell to Hold as of 31 Dec 2025. This upgrade signals a cautious but positive reassessment of the stock’s prospects by MarketsMOJO’s proprietary scoring system. The company holds a Market Cap Grade of 4, indicating a mid-tier market capitalisation relative to its sector peers.
Investors should note that while the Hold rating suggests neither a strong buy nor a sell, it highlights the need for close monitoring of technical developments and fundamental catalysts that could drive the next directional move.
Sector and Industry Positioning
Menon Bearings operates within the Auto Components & Equipments sector, a segment currently navigating supply chain challenges and fluctuating demand dynamics. The company’s technical indicators, combined with its recent price action, suggest it is consolidating gains made in recent months, possibly preparing for a renewed push if sector conditions improve.
Given the mixed signals, investors should weigh Menon Bearings’ technical momentum against broader industry trends and macroeconomic factors impacting the auto ancillary space.
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Technical Indicators in Detail: What Investors Should Watch
Investors analysing Menon Bearings should focus on several key technical indicators to gauge future momentum:
MACD: The Moving Average Convergence Divergence remains mildly bullish on the weekly chart, indicating some upward momentum in the short term. However, the monthly MACD’s mildly bearish stance warns of potential longer-term weakness, suggesting that any rally may face resistance.
RSI: The Relative Strength Index is neutral on both weekly and monthly timeframes, implying the stock is not currently overbought or oversold. This neutrality often precedes a directional breakout, making RSI a critical indicator to watch for emerging signals.
Bollinger Bands: The weekly Bollinger Bands show mild bullishness, with price action contained within the upper bands, while the monthly bands are outright bullish. This suggests that volatility is stabilising and the stock could be poised for a sustained move higher if confirmed by volume.
Moving Averages: Daily moving averages have turned mildly bearish, reflecting recent price declines. A sustained break above these averages would be necessary to confirm a reversal of the short-term downtrend.
KST Indicator: The Know Sure Thing indicator is bearish weekly but mildly bullish monthly, reinforcing the mixed momentum picture. Investors should monitor this indicator closely for a decisive crossover that could signal trend direction.
Dow Theory and OBV: Dow Theory finds no clear weekly trend but mild monthly bullishness, while On-Balance Volume is neutral weekly and bullish monthly. This divergence suggests accumulation at higher timeframes despite short-term selling pressure.
Conclusion: A Stock at a Technical Crossroads
Menon Bearings Ltd currently sits at a technical crossroads, with short-term indicators signalling caution and longer-term metrics hinting at potential strength. The recent downgrade in daily moving averages and the 4.99% price drop underscore near-term volatility risks, while monthly bullish signals in Bollinger Bands, OBV, and Dow Theory provide a foundation for optimism.
Investors should adopt a balanced approach, considering both the company’s improved Mojo Grade and the mixed technical signals. Close monitoring of MACD crossovers, RSI breakouts, and moving average trends will be essential to identify a clear directional bias. Given the stock’s historical outperformance over 5 and 10 years relative to the Sensex, Menon Bearings remains a compelling candidate for those willing to navigate its current technical complexity.
As always, integrating technical analysis with fundamental insights and sector trends will provide the most comprehensive investment perspective on Menon Bearings Ltd.
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