Metro Brands Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview and Price Movement

As of 18 Feb 2026, Metro Brands Ltd closed at ₹1,070.00, slightly up from the previous close of ₹1,068.45. The stock’s intraday range was relatively narrow, with a low of ₹1,065.00 and a high of ₹1,075.65. Over the past 52 weeks, the share price has fluctuated between ₹890.30 and ₹1,340.00, indicating significant volatility within the footwear sector. The current market cap grade stands at 3, reflecting a mid-tier valuation relative to peers.

The technical trend has transitioned from bearish to mildly bearish, signalling a potential easing of downward pressure but not yet a definitive reversal. This shift is corroborated by the Moving Average Convergence Divergence (MACD) indicator, which remains bearish on the weekly chart but has softened to mildly bearish on the monthly timeframe. The MACD’s histogram shows a narrowing gap between the signal and MACD lines, suggesting momentum is stabilising but not yet turning positive.

Momentum Oscillators: RSI and KST Analysis

The Relative Strength Index (RSI) currently offers no clear signal on either the weekly or monthly charts, hovering near neutral levels. This absence of a definitive RSI signal implies that the stock is neither overbought nor oversold, which aligns with the observed sideways price action in recent weeks.

Conversely, the Know Sure Thing (KST) indicator presents a divergence in timeframe readings. While the weekly KST remains bearish, the monthly KST has turned bullish, indicating that longer-term momentum may be improving despite short-term caution. This divergence suggests investors should monitor monthly momentum closely for confirmation of a sustained uptrend.

Moving Averages and Bollinger Bands

Daily moving averages continue to exert bearish pressure on Metro Brands Ltd, with the stock trading below its key short-term averages. This technical positioning often signals resistance to upward price movement in the near term. Meanwhile, Bollinger Bands reinforce this view, showing bearish tendencies on the weekly chart and mildly bearish conditions monthly. The bands remain relatively wide, reflecting ongoing price volatility and uncertainty among market participants.

Volume and Trend Confirmation Indicators

On-Balance Volume (OBV) analysis reveals a mildly bullish trend on the weekly scale, suggesting that buying volume is slightly outpacing selling pressure. However, the monthly OBV shows no clear trend, indicating that volume-driven momentum is not yet firmly established over the longer term. Dow Theory assessments on both weekly and monthly charts report no definitive trend, underscoring the current market indecision surrounding Metro Brands Ltd.

Comparative Returns and Sector Context

When benchmarked against the Sensex, Metro Brands Ltd’s returns paint a mixed picture. Over the past week, the stock marginally declined by 0.04%, outperforming the Sensex’s sharper fall of 0.98%. Over one month, the stock gained 0.29%, while the Sensex dipped 0.14%. However, year-to-date returns for Metro Brands Ltd are down 10.81%, significantly underperforming the Sensex’s 2.08% decline. Over the last year, the stock has fallen 5.28%, contrasting with the Sensex’s robust 9.81% gain. Longer-term returns over three years show a 28.51% appreciation, trailing the Sensex’s 36.80% rise, highlighting the stock’s relative underperformance within the broader market and footwear sector.

Mojo Score and Analyst Ratings

Metro Brands Ltd currently holds a Mojo Score of 48.0, placing it in the 'Sell' category, an upgrade from its previous 'Strong Sell' rating as of 8 Jan 2026. This improvement reflects a slight easing in negative sentiment but still advises caution for investors. The company’s market cap grade of 3 further suggests moderate size and liquidity constraints relative to larger footwear peers. The technical ratings, combined with fundamental assessments, indicate that while the stock may be stabilising, it has yet to demonstrate a convincing turnaround.

Outlook and Investor Considerations

Given the mixed technical signals, investors should approach Metro Brands Ltd with a balanced perspective. The mildly bearish trend and bearish daily moving averages caution against aggressive long positions at this stage. However, the monthly bullish KST and mildly bullish weekly OBV hint at potential underlying strength that could materialise if confirmed by improved price action and volume.

Investors may wish to monitor key support levels near the 52-week low of ₹890.30 and resistance around the 52-week high of ₹1,340.00. A sustained break above short-term moving averages and a positive MACD crossover on weekly charts would be critical technical triggers to signal a more definitive uptrend. Until then, the stock remains vulnerable to sector headwinds and broader market volatility.

Sector and Market Dynamics

The footwear sector continues to face challenges from fluctuating raw material costs, changing consumer preferences, and competitive pressures from both domestic and international brands. Metro Brands Ltd’s technical indicators reflect these sectoral headwinds, with price momentum struggling to gain traction despite occasional short-term rallies. The company’s ability to innovate product offerings and expand its retail footprint will be crucial in reversing the current technical malaise.

From a broader market perspective, the Sensex’s steady gains over the past year contrast with Metro Brands Ltd’s underperformance, underscoring the need for investors to weigh sector-specific risks carefully. The stock’s relative weakness compared to the benchmark index suggests that selective stock picking within the footwear space may yield better risk-adjusted returns.

Conclusion

Metro Brands Ltd’s recent technical parameter changes indicate a tentative shift from strong bearishness to a more neutral, mildly bearish stance. While some momentum indicators hint at potential improvement, the overall technical landscape remains cautious. Investors should remain vigilant for confirmation of trend reversals through improved moving averages, MACD crossovers, and volume support before committing to significant positions. The stock’s current Mojo Grade of 'Sell' reflects this cautious outlook, advising a prudent approach amid mixed signals and sector uncertainties.

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