Munjal Auto Industries Ltd Technical Momentum Shifts Amid Mixed Indicators

Technical Trend Evolution and Current Market Context

Munjal Auto Industries, a player in the Auto Components & Equipments sector, currently trades at ₹80.00, slightly up from the previous close of ₹79.67. The stock’s 52-week range spans from ₹60.04 to ₹114.60, indicating significant volatility over the past year. The recent technical trend has shifted from mildly bearish to sideways, signalling a potential pause in the downward momentum that characterised much of 2025.

This sideways movement is reflected in the mixed signals from various technical indicators. The Moving Average Convergence Divergence (MACD) remains bearish on the weekly chart and mildly bearish on the monthly chart, suggesting that the underlying momentum is still under pressure. However, the Relative Strength Index (RSI) on the weekly timeframe has turned bullish, indicating some short-term buying interest and potential for upward price movement.

Meanwhile, Bollinger Bands on both weekly and monthly charts remain mildly bearish, implying that price volatility is still skewed towards the downside, but not decisively so. The daily moving averages have turned mildly bullish, which could be an early sign of a recovery phase if sustained.

In-Depth Indicator Analysis: MACD, RSI, and Moving Averages

The MACD indicator, a key momentum oscillator, remains bearish on the weekly scale, signalling that the stock’s short-term momentum is still under pressure. The monthly MACD is mildly bearish, reflecting a longer-term downtrend that has yet to be decisively reversed. This divergence between weekly and monthly MACD readings suggests that while short-term momentum may be improving, the broader trend remains cautious.

Conversely, the weekly RSI has shifted into bullish territory, typically above the 50 mark, indicating that buying interest is gaining strength. This is a positive sign for traders looking for early signs of a trend reversal. The monthly RSI, however, shows no clear signal, reinforcing the notion that the stock’s longer-term momentum remains uncertain.

Daily moving averages have turned mildly bullish, with short-term averages crossing above longer-term averages, a classic technical signal that often precedes upward price movement. This development could attract momentum traders and short-term investors seeking to capitalise on a potential rebound.

Volume and Other Technical Signals

Volume-based indicators also provide mixed insights. The On-Balance Volume (OBV) is mildly bullish on the weekly chart, suggesting that accumulation may be occurring despite the sideways price action. However, the monthly OBV shows no clear trend, indicating that longer-term volume support remains weak.

The Know Sure Thing (KST) oscillator is bearish on the weekly timeframe and mildly bearish on the monthly, reinforcing the cautious stance on momentum. Dow Theory analysis finds no definitive trend on either weekly or monthly charts, highlighting the current consolidation phase.

Comparative Performance: Munjal Auto Industries vs Sensex

Examining the stock’s returns relative to the benchmark Sensex reveals a mixed performance. Over the past week and month, Munjal Auto Industries has underperformed the Sensex, with returns of -0.97% and -3.33% respectively, compared to the Sensex’s -0.26% and -0.53%. However, year-to-date, the stock has marginally outperformed the Sensex, gaining 0.41% against a slight Sensex decline of 0.04%.

Longer-term returns show a more nuanced picture. Over one year, the stock has declined by 20.16%, significantly underperforming the Sensex’s 8.51% gain. Yet, over three and ten years, Munjal Auto Industries has delivered robust returns of 67.01% and 73.63%, outperforming the Sensex’s 40.02% gain over three years but lagging behind its 225.63% gain over ten years. The five-year return of 33.22% trails the Sensex’s 77.96%, indicating some challenges in medium-term growth.

Mojo Score and Rating Update

MarketsMOJO’s latest assessment downgraded Munjal Auto Industries from a Hold to a Sell rating on 24 Nov 2025, reflecting concerns about the stock’s technical and fundamental outlook. The current Mojo Score stands at 40.0, categorised as Sell, with a Market Cap Grade of 4, indicating a mid-sized company with moderate liquidity and market presence.

This downgrade aligns with the mixed technical signals and the stock’s recent underperformance relative to the broader market. Investors should weigh these factors carefully when considering exposure to this stock within the Auto Components & Equipments sector.

Investor Takeaway and Outlook

The technical landscape for Munjal Auto Industries Ltd is currently characterised by a delicate balance between emerging bullish signals and persistent bearish undertones. The shift from a mildly bearish to a sideways trend suggests that the stock may be consolidating before a clearer directional move emerges.

Short-term traders may find opportunity in the weekly RSI’s bullish stance and the mildly bullish daily moving averages, which hint at potential upward momentum. However, the bearish MACD readings and the lack of a definitive trend in Dow Theory caution against aggressive positioning.

Given the stock’s recent underperformance relative to the Sensex and the downgrade to a Sell rating by MarketsMOJO, investors should approach with prudence. Monitoring the evolution of key technical indicators, particularly the MACD and volume trends, will be crucial in assessing whether Munjal Auto Industries can sustain any recovery or if further downside risks prevail.

In summary, while early signs of momentum are emerging, the overall technical picture remains mixed, underscoring the importance of a measured approach in portfolio allocation decisions involving this stock.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today