MRF Ltd. Technical Momentum Shifts Amid Mixed Indicator Signals

Technical Trend Overview and Price Movement

As of 13 Feb 2026, MRF Ltd. closed at ₹1,51,459.55, down marginally by 0.22% from the previous close of ₹1,51,795.90. The stock traded within a range of ₹1,49,850.30 to ₹1,52,500.00 during the day, reflecting subdued volatility. Over the past 52 weeks, MRF’s price has oscillated between ₹1,00,500.00 and ₹1,63,500.00, indicating a strong recovery and resilience in the tyre manufacturing sector.

The recent technical trend has shifted from mildly bearish to sideways, signalling a pause in the downward momentum and potential consolidation. This transition is critical for traders and investors as it may precede a directional breakout or further range-bound movement.

MACD and Momentum Indicators: Divergent Signals

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On the weekly chart, MACD remains bearish, suggesting that short-term momentum is still under pressure. However, the monthly MACD has turned bullish, indicating that the longer-term trend retains strength and could support a sustained upward move if confirmed by other indicators.

This divergence between weekly and monthly MACD readings highlights the importance of timeframe analysis. Short-term traders may remain cautious, while long-term investors could view the monthly bullish MACD as a positive sign for future appreciation.

RSI and Bollinger Bands: Neutral to Bullish Signals

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This suggests that the stock is neither overbought nor oversold, reinforcing the sideways trend observed in price action.

Conversely, Bollinger Bands indicate sideways movement on the weekly scale but a bullish pattern on the monthly scale. The monthly bullish Bollinger Bands imply increasing volatility with an upward bias, which could translate into stronger price momentum in the coming months.

Moving Averages and KST: Mixed Timeframe Perspectives

Daily moving averages for MRF Ltd. currently indicate a mildly bearish stance, reflecting recent price softness. This suggests that short-term momentum is under pressure, and the stock may face resistance near current levels.

Meanwhile, the Know Sure Thing (KST) indicator shows bearish signals on the weekly chart but bullish momentum on the monthly chart. This again underscores the divergence between short-term caution and longer-term optimism among technical indicators.

Volume and Dow Theory Insights

On-Balance Volume (OBV) readings are bullish on both weekly and monthly timeframes, signalling that buying pressure is accumulating despite recent price weakness. This accumulation phase could provide a foundation for a potential upward breakout if confirmed by price action.

Dow Theory assessments reveal a mildly bullish trend on the weekly scale, while the monthly trend remains without a clear directional bias. This suggests that while short-term market participants may be gaining confidence, the broader trend requires further confirmation.

Comparative Returns and Market Context

MRF Ltd. has delivered impressive returns relative to the Sensex over multiple time horizons. The stock outperformed the benchmark index with a 1-week return of 12.25% versus Sensex’s 0.43%, and a 1-year return of 38.38% compared to Sensex’s 9.85%. Over a 10-year period, MRF’s return of 376.85% significantly eclipses the Sensex’s 264.02%, highlighting the company’s robust growth trajectory and market leadership.

Year-to-date, however, MRF has slightly underperformed the Sensex, with a -0.85% return against the index’s -1.81%, reflecting broader market volatility and sector-specific challenges.

Mojo Score and Rating Update

MarketsMOJO has recently downgraded MRF Ltd.’s Mojo Grade from Buy to Hold as of 20 Nov 2025, reflecting the evolving technical landscape and cautious outlook. The current Mojo Score stands at 55.0, indicating a moderate level of confidence in the stock’s near-term prospects. The Market Cap Grade remains low at 2, suggesting that valuation and liquidity factors may also be influencing the rating.

This rating adjustment aligns with the mixed technical signals and sideways momentum, advising investors to adopt a watchful stance rather than aggressive accumulation at this juncture.

Investment Implications and Outlook

MRF Ltd.’s technical indicators present a complex picture. The coexistence of bearish weekly signals and bullish monthly trends across MACD, KST, and Bollinger Bands suggests that the stock is at a critical inflection point. Short-term traders should exercise caution given the mildly bearish daily moving averages and weekly MACD, while long-term investors may find encouragement in the monthly bullish momentum and strong historical returns.

Volume-based indicators such as OBV support the case for underlying accumulation, which could fuel a breakout if accompanied by positive price action. However, the neutral RSI readings and sideways Bollinger Bands on the weekly timeframe imply that volatility may remain subdued in the near term.

Given these factors, investors might consider maintaining existing positions with a close eye on technical developments, particularly any shifts in weekly MACD or moving averages that could signal renewed momentum. Diversification within the Tyres & Rubber Products sector and comparison with peers using analytical tools may also help optimise portfolio positioning.

Summary

In summary, MRF Ltd. is navigating a transitional phase in its technical momentum, characterised by mixed signals across key indicators. While short-term caution is warranted, the longer-term bullish trends and strong relative returns provide a foundation for potential upside. The recent downgrade to a Hold rating by MarketsMOJO reflects this balanced outlook, urging investors to monitor developments closely before making significant moves.

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