Technical Trend Overview
Mercury EV-Tech’s technical trend has transitioned from a clearly bearish stance to a mildly bearish one, signalling a subtle easing of downward pressure. The stock closed at ₹36.94 on 17 Feb 2026, marginally down by 0.22% from the previous close of ₹37.02. This price action remains significantly below its 52-week high of ₹76.93, underscoring the persistent challenges the stock faces in regaining upward momentum.
The daily moving averages continue to reflect a bearish outlook, indicating that short-term price action remains under pressure. However, weekly indicators such as the MACD and KST oscillators have turned mildly bullish, suggesting potential early signs of momentum recovery on a medium-term horizon. Conversely, monthly MACD and Bollinger Bands remain bearish, highlighting that longer-term technicals have yet to confirm a sustained reversal.
MACD and Momentum Analysis
The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD is mildly bullish, implying that the stock’s short-term momentum is improving as the MACD line edges above its signal line. This could be interpreted as a tentative buy signal for traders looking for early entry points. However, the monthly MACD remains bearish, reflecting that the broader trend is still dominated by selling pressure.
This divergence between weekly and monthly MACD readings suggests that while short-term momentum may be stabilising, investors should remain cautious until monthly indicators confirm a more robust uptrend.
RSI and Overbought/Oversold Conditions
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, providing no clear directional bias from momentum oscillators. The absence of RSI extremes suggests that the stock price could be poised for either a rebound or further decline, depending on upcoming market catalysts and sector developments.
Bollinger Bands and Volatility
Bollinger Bands on weekly and monthly timeframes remain bearish, with the stock price trading near the lower band. This positioning typically signals heightened volatility and potential downside risk. The persistent bearish stance of Bollinger Bands suggests that Mercury EV-Tech’s price is under pressure and may continue to face resistance in breaking above the mid-band, which often acts as a dynamic resistance level.
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Moving Averages and Daily Price Action
Daily moving averages remain bearish, with the stock trading below its short-term and medium-term averages. This indicates that the immediate price momentum is weak, and sellers continue to dominate intraday trading. The stock’s intraday high of ₹37.43 and low of ₹36.71 on 17 Feb 2026 reflect a narrow trading range, suggesting consolidation amid uncertainty.
Given the bearish daily moving averages, any upward price moves may face resistance near these averages, which often act as dynamic ceilings during downtrends.
On-Balance Volume and Dow Theory Signals
On-Balance Volume (OBV) data is currently inconclusive, with no clear directional bias on weekly or monthly charts. This lack of volume confirmation tempers enthusiasm for a strong trend reversal, as volume is a critical component in validating price moves.
Dow Theory analysis shows a mildly bullish signal on the weekly timeframe but no discernible trend on the monthly scale. This further reinforces the notion that short-term technicals are attempting to stabilise, while the longer-term trend remains uncertain.
Comparative Performance and Market Context
Mercury EV-Tech’s recent returns paint a mixed picture relative to the broader Sensex index. Over the past week, the stock declined by 6.53%, significantly underperforming the Sensex’s modest 0.94% drop. However, over the past month, Mercury EV-Tech surged 12.38%, outperforming the Sensex’s 0.35% decline. Year-to-date, the stock is nearly flat with a slight 0.19% loss, while the Sensex has fallen 2.28%.
Longer-term returns remain challenging, with a 46.66% loss over the past year contrasting sharply with the Sensex’s 9.66% gain. Yet, the stock has delivered exceptional gains over three and ten years, with returns of 100.22% and 920.44% respectively, far outpacing the Sensex’s 35.81% and 259.08% over the same periods. This highlights Mercury EV-Tech’s volatile but potentially rewarding growth trajectory within the automobile sector.
Mojo Score and Rating Update
MarketsMOJO has downgraded Mercury EV-Tech’s Mojo Grade from Sell to Strong Sell as of 20 May 2025, reflecting deteriorating fundamentals and technical outlook. The current Mojo Score stands at a low 21.0, signalling weak overall quality and momentum. The Market Cap Grade is 4, indicating a relatively small market capitalisation that may contribute to higher volatility and liquidity risks.
Investors should weigh these ratings carefully against the mixed technical signals and the company’s long-term growth potential in the evolving electric vehicle market.
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Investor Takeaway
Mercury EV-Tech Ltd’s technical indicators present a complex scenario. While weekly momentum oscillators such as MACD and KST hint at a mild bullish shift, the dominant monthly signals and daily moving averages remain bearish. The neutral RSI and inconclusive volume data further complicate the outlook, suggesting that the stock is in a consolidation phase rather than a clear directional trend.
Given the stock’s significant underperformance over the past year and the recent downgrade to a Strong Sell rating, investors should exercise caution. Short-term traders might find opportunities in the mildly bullish weekly signals, but longer-term investors should await confirmation of trend reversals from monthly indicators before committing fresh capital.
Moreover, Mercury EV-Tech’s volatile price history and small market capitalisation underscore the importance of risk management and diversification within the automobile sector, especially in the rapidly evolving electric vehicle space.
Conclusion
In summary, Mercury EV-Tech Ltd is navigating a transitional phase in its technical momentum. The shift from bearish to mildly bearish on weekly charts offers a glimmer of hope, but the prevailing monthly bearishness and weak daily moving averages caution against premature optimism. Investors should monitor upcoming earnings, sector developments, and broader market trends closely to gauge whether the stock can sustain any technical recovery.
For those seeking exposure to the automobile sector, particularly electric vehicles, it may be prudent to consider alternative stocks with stronger technical and fundamental profiles, as identified by comprehensive multi-parameter analyses.
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