Metro Brands Ltd Technical Momentum Shifts to Bearish Amid Mixed Market Returns

Technical Trend Overview

The footwear sector stock, currently trading at ₹1,042.65, has seen its technical trend downgrade from mildly bearish to bearish. This shift is underscored by several key technical indicators. The Moving Average Convergence Divergence (MACD) remains bearish on the weekly chart and mildly bearish on the monthly, signalling persistent downward momentum. Meanwhile, the Relative Strength Index (RSI) shows no clear signal on both weekly and monthly timeframes, suggesting a lack of strong directional momentum in the short to medium term.

Bollinger Bands add further nuance: weekly readings are mildly bearish, while monthly bands confirm a bearish outlook. Daily moving averages reinforce this negative sentiment, with the stock price currently below key averages, indicating selling pressure. The Know Sure Thing (KST) indicator presents a mixed view, bearish on the weekly but bullish on the monthly, hinting at potential longer-term recovery that is yet to materialise.

Price Action and Volatility

On 24 Feb 2026, Metro Brands recorded a day high of ₹1,055.10 and a low of ₹1,036.80, closing slightly higher than the previous close of ₹1,036.75, reflecting a day change of +0.57%. Despite this intraday strength, the stock remains well below its 52-week high of ₹1,340.00 and above its 52-week low of ₹890.30, indicating a wide trading range and elevated volatility over the past year.

Comparative Returns and Market Context

Examining returns relative to the Sensex reveals a challenging environment for Metro Brands. Over the past week, the stock declined by 2.41%, contrasting with a marginal Sensex gain of 0.02%. Over one month, the stock posted a modest 2.02% gain, slightly underperforming the Sensex’s 2.15%. Year-to-date, Metro Brands has fallen 13.09%, significantly lagging the Sensex’s 2.26% decline. Over the last year, the stock’s return of -8.18% starkly contrasts with the Sensex’s robust 10.60% gain, highlighting sector-specific headwinds or company-specific challenges.

Longer-term returns show some recovery, with a three-year gain of 22.76%, though this remains below the Sensex’s 39.74% over the same period. Five- and ten-year data are unavailable for the stock, but the Sensex’s 67.42% and 255.80% gains respectively set a high benchmark for comparison.

In-Depth Technical Indicator Analysis

The MACD’s bearish weekly stance indicates that the short-term momentum remains weak, with the MACD line likely below the signal line and histogram bars negative or shrinking. The mildly bearish monthly MACD suggests that while the longer-term trend is not strongly negative, it has not yet turned positive. This divergence between weekly and monthly MACD readings often signals caution for traders, as short-term weakness may persist despite some longer-term stability.

The RSI’s neutral readings on both weekly and monthly charts imply that the stock is neither overbought nor oversold, which can be interpreted as a consolidation phase. This lack of momentum signal means that traders should watch for a breakout or breakdown to confirm directional bias.

Bollinger Bands’ mildly bearish weekly and bearish monthly signals suggest that price volatility is skewed towards the downside. The stock price likely trades near or below the lower band on the monthly chart, indicating sustained selling pressure. This is corroborated by daily moving averages, which remain bearish, signalling that the stock is trading below its short- and medium-term averages, a classic sign of a downtrend.

The KST indicator’s conflicting signals—bearish weekly but bullish monthly—highlight a potential divergence. While short-term momentum is weak, the longer-term trend may be poised for improvement, but confirmation is required through price action and volume.

Volume and Trend Confirmation

On-Balance Volume (OBV) readings show no clear trend on weekly or monthly charts, indicating that volume is not confirming price moves decisively. Similarly, Dow Theory analysis reveals no established trend on either timeframe, suggesting that the market has not yet committed to a clear directional move for Metro Brands.

Mojo Score and Ratings Update

MarketsMOJO assigns Metro Brands a Mojo Score of 43.0, reflecting a Sell rating. This is an improvement from the previous Strong Sell grade issued on 8 Jan 2026, signalling a slight easing of negative sentiment but still cautionary for investors. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers. These ratings align with the technical indicators, which collectively suggest a bearish outlook with limited near-term upside.

Investor Implications and Outlook

Given the current technical landscape, investors should approach Metro Brands with caution. The bearish momentum across multiple indicators suggests that the stock may face continued downward pressure in the near term. The absence of strong volume confirmation and neutral RSI readings imply that any rallies could be short-lived without fundamental catalysts.

Longer-term investors might find some solace in the bullish monthly KST and the stock’s three-year positive return of 22.76%, though this underperforms the broader Sensex benchmark. The downgrade from Strong Sell to Sell by MarketsMOJO indicates a marginal improvement but does not yet signal a definitive turnaround.

Traders should monitor key technical levels, including the 52-week low of ₹890.30 as a critical support and the 52-week high of ₹1,340.00 as resistance. A sustained move above daily moving averages and a positive MACD crossover would be necessary to confirm a reversal in trend.

In summary, Metro Brands Ltd’s technical parameters reveal a stock grappling with bearish momentum and mixed signals. While some indicators hint at potential longer-term recovery, the prevailing trend remains negative, underscoring the need for careful analysis and risk management.

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