Technical Trend Overview and Price Movement
Monte Carlo Fashions Ltd, a key player in the Garments & Apparels sector, currently trades at ₹599.80, down 1.45% from the previous close of ₹608.60. The stock’s intraday range on 6 Feb 2026 spanned from ₹591.45 to ₹606.00, reflecting moderate volatility. Over the past 52 weeks, the share price has oscillated between a low of ₹507.40 and a high of ₹865.00, indicating significant price swings within the year.
The recent technical trend has shifted from mildly bullish to sideways, signalling a loss of upward momentum. This is corroborated by the Moving Averages on the daily chart, which remain mildly bullish, suggesting some underlying support. However, the broader weekly and monthly technical indicators paint a more cautious picture.
MACD and Momentum Indicators Signal Bearishness
The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, is bearish on both weekly and monthly timeframes. This suggests that the stock’s medium- to long-term momentum is weakening, with the MACD line positioned below the signal line and trending downward. Such a configuration often precedes further price declines or consolidation phases.
Complementing this, the Know Sure Thing (KST) indicator also registers bearish readings on weekly and monthly charts, reinforcing the view of diminishing momentum. The KST’s bearish stance indicates that the stock’s price gains are losing steam, which could lead to sideways or downward price action in the near term.
RSI and Bollinger Bands Reflect Mixed Signals
The Relative Strength Index (RSI) presents a nuanced outlook. On the weekly chart, the RSI shows no clear signal, hovering near neutral levels, which implies neither overbought nor oversold conditions. Conversely, the monthly RSI is bullish, suggesting some underlying strength over a longer horizon. This divergence between weekly and monthly RSI readings highlights the stock’s current indecision among traders.
Bollinger Bands, which measure price volatility and potential reversal points, are mildly bearish on both weekly and monthly charts. The bands have slightly widened, indicating increased volatility, but the price remains closer to the lower band, signalling potential downside pressure. This mild bearishness aligns with the sideways trend and suggests caution for momentum traders.
Other Technical Indicators and Volume Analysis
On the volume front, the On-Balance Volume (OBV) indicator shows no discernible trend on weekly or monthly charts, indicating that volume is not confirming any strong directional move. This lack of volume confirmation often precedes periods of consolidation or sideways price action.
The Dow Theory assessment is mildly bullish on the weekly timeframe but shows no clear trend monthly, further emphasising the mixed technical backdrop. This suggests that while short-term price action may have some positive undertones, the longer-term trend remains uncertain.
Our latest monthly pick, this Large Cap from Aluminium & Aluminium Products, is outperforming the market! See the analysis that helped our Investment Committee select this winner.
- - Market-beating performance
- - Committee-backed winner
- - Aluminium & Aluminium Products standout
Comparative Performance Versus Sensex
Monte Carlo Fashions’ recent returns have underperformed the benchmark Sensex across multiple timeframes. Over the past week, the stock posted a strong 6.13% gain compared to the Sensex’s 0.91%, reflecting short-term resilience. However, this outperformance is overshadowed by negative returns over longer periods: a 7.96% decline in the past month versus Sensex’s 2.49% drop, and a year-to-date loss of 6.16% compared to Sensex’s 2.24% fall.
Over the one-year horizon, Monte Carlo Fashions has declined 15.31%, while the Sensex gained 6.44%, highlighting a significant relative underperformance. Even over three years, the stock is down 5.32%, whereas the Sensex surged 36.94%. Despite this, the company has delivered a robust five-year return of 146.88%, more than doubling the Sensex’s 64.22% gain, indicating strong long-term growth potential. The 10-year return of 34.57% lags the Sensex’s 238.44%, reflecting challenges in sustaining momentum over the very long term.
Mojo Score and Analyst Ratings
MarketsMOJO assigns Monte Carlo Fashions a Mojo Score of 37.0, categorising it as a Sell with a recent downgrade from Hold on 22 Dec 2025. This downgrade reflects the deteriorating technical and fundamental outlook. The company’s Market Cap Grade stands at 4, indicating a mid-sized market capitalisation relative to peers in the Garments & Apparels sector.
The downgrade is consistent with the mixed technical signals and recent price weakness, suggesting investors should exercise caution. The current technical environment does not favour aggressive buying, and the sideways momentum indicates a wait-and-watch approach may be prudent until clearer directional cues emerge.
Holding Monte Carlo Fashions Ltd from Garments & Apparels? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Investor Implications and Outlook
Given the current technical landscape, Monte Carlo Fashions Ltd is navigating a challenging phase marked by weakening momentum and mixed signals. The bearish MACD and KST indicators on weekly and monthly charts caution against expecting a sustained rally in the near term. Meanwhile, the mildly bullish daily moving averages and monthly RSI suggest some underlying support, but not enough to confirm a robust uptrend.
Investors should monitor key support levels near the recent lows around ₹507.40 and watch for any breakout above the daily moving averages to signal renewed strength. The sideways trend implies that the stock may consolidate before making a decisive move, and volume patterns will be critical to confirm any trend changes.
Long-term investors may find value in the company’s strong five-year returns, but the recent downgrade and technical deterioration warrant a cautious approach. Short-term traders should be wary of potential volatility and consider risk management strategies given the mixed technical signals.
Conclusion
Monte Carlo Fashions Ltd’s technical parameters reveal a stock in transition, with momentum indicators signalling a shift from mild bullishness to sideways movement. The bearish MACD and KST readings, combined with mildly bearish Bollinger Bands and neutral RSI on weekly charts, suggest a period of consolidation or potential weakness ahead. While the daily moving averages offer some support, the overall technical picture advises prudence.
Investors should closely track upcoming price action and volume trends to identify any reversal or continuation signals. Until then, the stock’s downgraded Mojo Grade and mixed technical signals recommend a cautious stance, with a focus on risk management and comparative analysis within the Garments & Apparels sector.
Unlock special upgrade rates for a limited period. Start Saving Now →
