Nazara Technologies Ltd Technical Momentum Shifts Amid Mixed Indicator Signals

Technical Trend and Price Movement Overview

As of 17 Feb 2026, Nazara Technologies Ltd closed at ₹274.85, down 1.68% from the previous close of ₹279.55. The stock’s intraday range was between ₹272.35 and ₹280.05, indicating moderate volatility. Over the past 52 weeks, the share price has fluctuated between ₹221.50 and ₹362.50, highlighting a significant range of price movement within the year.

The technical trend has shifted from a neutral sideways pattern to a mildly bearish one, signalling a potential weakening in upward momentum. This shift is corroborated by the daily moving averages, which currently indicate a mildly bearish outlook. The stock’s current price is trading below some key moving averages, suggesting that short-term momentum may be under pressure.

MACD and Momentum Oscillators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed scenario. On a weekly basis, the MACD remains mildly bullish, implying that medium-term momentum retains some upward bias. However, the monthly MACD has turned mildly bearish, signalling that longer-term momentum may be waning. This divergence between weekly and monthly MACD readings suggests that while short to medium-term investors might find some optimism, longer-term holders should exercise caution.

The Know Sure Thing (KST) indicator echoes this sentiment, showing a mildly bullish trend on the weekly chart but a mildly bearish stance on the monthly timeframe. This further emphasises the conflicting signals between shorter and longer-term momentum indicators.

Relative Strength Index and Bollinger Bands

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, suggesting a lack of strong directional conviction from momentum traders at present.

Conversely, Bollinger Bands on both weekly and monthly charts are mildly bullish. The price is positioned closer to the upper band on these timeframes, which can be interpreted as a sign of positive momentum or potential volatility expansion. However, given the mixed signals from other indicators, this bullishness should be viewed with measured optimism.

Volume and On-Balance Volume (OBV) Analysis

On-Balance Volume (OBV) readings provide further insight into the stock’s underlying strength. Weekly OBV shows no clear trend, indicating that volume flow has been relatively neutral in the short term. However, the monthly OBV is mildly bullish, suggesting that longer-term accumulation may be occurring despite recent price softness. This divergence between volume and price action can sometimes precede a reversal or consolidation phase.

Dow Theory and Market Sentiment

According to Dow Theory, the weekly chart currently shows no definitive trend, reflecting the stock’s recent sideways to mildly bearish price action. Meanwhile, the monthly Dow Theory assessment is mildly bullish, indicating that the broader market sentiment towards Nazara Technologies remains cautiously optimistic over the longer term.

Comparative Returns and Market Context

When compared with the broader Sensex index, Nazara Technologies has outperformed significantly over the medium to long term. The stock has delivered an 18.99% return over the past year versus Sensex’s 9.66%, and an impressive 95.47% return over three years compared to Sensex’s 35.81%. Year-to-date, the stock has gained 0.48%, while the Sensex has declined by 2.28%. This relative strength underscores the company’s resilience amid broader market fluctuations.

However, the recent downgrade in the Mojo Grade from Hold to Sell on 12 Jan 2026, with a current Mojo Score of 37.0, reflects a more cautious stance by analysts. The Market Cap Grade remains low at 3, indicating limited market capitalisation strength relative to peers.

Investment Implications and Outlook

Investors should note the mixed technical signals currently exhibited by Nazara Technologies. The mildly bearish daily moving averages and monthly MACD suggest caution, particularly for those with longer investment horizons. Meanwhile, weekly indicators such as MACD, Bollinger Bands, and KST provide some grounds for optimism in the short to medium term.

Given the stock’s recent price decline and technical momentum shift, traders may consider waiting for clearer confirmation of trend direction before initiating new positions. Long-term investors might view current levels as an opportunity to accumulate selectively, given the stock’s strong relative performance over multiple years and the mildly bullish monthly volume indicators.

Summary of Technical Ratings and Market Position

Nazara Technologies currently holds a Mojo Grade of Sell with a score of 37.0, reflecting a downgrade from Hold as of 12 Jan 2026. This downgrade aligns with the mildly bearish technical trend and daily moving averages. The mixed signals from momentum indicators such as MACD and KST across weekly and monthly timeframes highlight the stock’s uncertain near-term trajectory.

Investors should weigh these technical factors alongside the company’s strong historical returns and sector positioning within Media & Entertainment. The stock’s relative outperformance against the Sensex over one and three years remains a positive backdrop, but the recent technical shifts warrant prudence.

In conclusion, Nazara Technologies Ltd presents a complex technical picture with both bullish and bearish elements. Market participants are advised to monitor key technical levels and indicator confirmations closely before making significant investment decisions.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →