MRF Ltd. Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview and Price Movement

MRF’s current price stands at ₹1,32,078.25, slightly down from the previous close of ₹1,32,166.70, marking a marginal day change of -0.07%. The stock’s intraday range on 2 Feb 2026 spanned from ₹1,31,289.30 to ₹1,34,300.00, indicating some volatility but no decisive directional breakout. Over the past 52 weeks, MRF has traded between ₹1,00,500.00 and ₹1,63,500.00, highlighting a broad trading band that investors continue to monitor closely.

Technically, the trend has shifted from mildly bearish to sideways, signalling a pause in the previous downward momentum. This transition suggests that while selling pressure has eased, buyers have yet to assert strong control to push prices decisively higher.

MACD and Momentum Indicators Signal Divergence

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, MACD remains bearish, reflecting persistent downward momentum in the medium term. However, the monthly MACD is mildly bearish, indicating that longer-term momentum is stabilising but not yet turning positive. This divergence between weekly and monthly MACD readings suggests that while short-term sellers dominate, the longer-term trend may be approaching a consolidation phase.

Complementing this, the Know Sure Thing (KST) indicator shows bearish momentum on the weekly chart but bullish signals on the monthly timeframe. This mixed reading reinforces the notion of a stock caught between short-term weakness and longer-term resilience.

RSI and Bollinger Bands Confirm Lack of Clear Direction

The Relative Strength Index (RSI) offers no definitive signal on either weekly or monthly charts, hovering in neutral territory. This absence of overbought or oversold conditions aligns with the sideways price action observed, suggesting neither buyers nor sellers have gained a decisive upper hand.

Bollinger Bands, however, remain bearish on both weekly and monthly timeframes, indicating that price volatility is skewed towards the lower band. This could imply that the stock is under pressure to test support levels, although the sideways trend tempers the risk of a sharp decline.

Moving Averages and Volume Trends

Daily moving averages provide a mildly bullish signal, hinting at some short-term buying interest. This contrasts with the broader weekly and monthly technicals, suggesting that intraday traders and short-term investors may be positioning for a potential rebound.

On the volume front, the On-Balance Volume (OBV) indicator shows no clear trend on weekly or monthly charts, indicating that volume flow has been relatively balanced without significant accumulation or distribution phases. This lack of volume confirmation adds to the uncertainty surrounding the stock’s immediate direction.

Comparative Returns and Market Context

MRF’s recent returns paint a mixed picture when benchmarked against the Sensex. Over the past week, the stock declined by 3.94%, significantly underperforming the Sensex’s 1.00% drop. The one-month and year-to-date (YTD) returns are also weak, with MRF down 13.57% and 13.54% respectively, compared to Sensex declines of 4.67% and 5.28%. This underperformance highlights the stock’s vulnerability amid broader market pressures.

However, the longer-term outlook remains more favourable. Over one year, MRF has delivered a robust 17.32% return, outperforming the Sensex’s 5.16%. The three-year and ten-year returns are even more impressive, with MRF posting gains of 47.89% and 270.93% respectively, compared to Sensex returns of 35.67% and 224.57%. These figures underscore the company’s resilience and growth potential over extended periods despite short-term volatility.

Mojo Score and Grade Revision

MarketsMOJO’s latest assessment assigns MRF a Mojo Score of 58.0, reflecting a Hold rating. This represents a downgrade from the previous Buy grade issued on 20 Nov 2025. The downgrade is consistent with the technical indicators signalling a shift from mildly bearish to sideways momentum and the recent underperformance relative to the benchmark index.

The Market Cap Grade remains at 2, indicating a mid-tier valuation relative to peers in the Tyres & Rubber Products sector. Investors should weigh this alongside the technical signals and fundamental outlook when considering their positions.

Sector and Industry Considerations

Within the Tyres & Rubber Products industry, MRF faces competitive pressures and cyclical demand fluctuations. The sector’s sensitivity to raw material costs and automotive industry trends adds layers of complexity to the stock’s price action. Technical indicators suggest that MRF is currently consolidating, potentially awaiting clearer sectoral catalysts or macroeconomic developments to drive the next directional move.

Investor Takeaway and Outlook

MRF Ltd.’s technical landscape is characterised by a delicate balance between bearish momentum and emerging bullish signals. The downgrade to a Hold rating reflects the need for caution as the stock navigates a sideways phase after recent declines. Investors should monitor key technical levels, including the 52-week low of ₹1,00,500.00 and the resistance near ₹1,63,500.00, for signs of a breakout or breakdown.

Short-term traders may find opportunities in the mildly bullish daily moving averages, but the absence of strong volume confirmation and mixed momentum indicators warrants prudence. Long-term investors can take comfort from MRF’s solid multi-year returns and sector leadership, but should remain vigilant for shifts in market dynamics and raw material cost pressures.

Overall, MRF’s current technical signals suggest a period of consolidation and indecision, with potential for renewed momentum if positive catalysts emerge. Until then, a Hold stance appears justified, balancing the stock’s historical strength against near-term uncertainties.

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