NDR Auto Components Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Trend Shift and Price Movement

The stock closed at ₹755.45, down from the previous close of ₹789.50, marking a significant intraday drop. The day’s trading range was between ₹751.00 and ₹773.80, indicating heightened volatility. Over the past week, the stock has fallen by 7.3%, considerably underperforming the Sensex’s modest decline of 1.47% during the same period. This short-term weakness contrasts with the stock’s longer-term resilience, having delivered a 13.47% return over the past year, outperforming the Sensex’s 10.44% gain.

Despite this, the technical trend has deteriorated from mildly bearish to outright bearish, signalling increased downside risk. The 52-week high of ₹1,218.70 remains distant, while the 52-week low of ₹550.00 suggests a wide trading range and potential support levels yet to be tested.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart and mildly bearish on the monthly chart. This suggests that the stock’s momentum is weakening, with the MACD line below the signal line and a negative histogram reinforcing downward pressure. The lack of bullish crossover in the near term indicates that momentum recovery is unlikely without a significant catalyst.

Complementing this, the Know Sure Thing (KST) oscillator also reflects bearish sentiment on the weekly timeframe and mildly bearish on the monthly, further confirming the momentum shift. These momentum oscillators are crucial for traders seeking to time entries and exits, and their current readings advise caution.

RSI and Overbought/Oversold Conditions

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in a neutral zone. This absence of oversold or overbought conditions suggests that the stock is not yet at an extreme, leaving room for further downside before a potential reversal. Investors should monitor RSI closely for any move below 30, which could indicate oversold conditions and a possible buying opportunity.

Moving Averages and Bollinger Bands

Daily moving averages are firmly bearish, with the stock trading below key averages such as the 50-day and 200-day moving averages. This technical setup often signals sustained selling pressure and a lack of short-term buying interest. Additionally, Bollinger Bands on the weekly chart are bearish, with the price approaching the lower band, indicating increased volatility and downward momentum. The monthly Bollinger Bands are mildly bearish, suggesting that while the longer-term trend is weakening, it has not yet reached a critical breakdown.

Volume and Dow Theory Analysis

On-Balance Volume (OBV) indicators show no clear trend on the weekly chart and only mildly bearish signals on the monthly chart. This suggests that volume has not decisively confirmed the price decline, leaving some ambiguity about the strength of selling pressure. Dow Theory analysis aligns with this, showing no clear trend on the weekly timeframe and mildly bearish signals monthly, indicating that the broader market sentiment for the stock is cautious but not yet decisively negative.

Mojo Score and Grade Downgrade

Reflecting these technical weaknesses, MarketsMOJO has downgraded NDR Auto Components Ltd’s Mojo Grade from Hold to Sell as of 22 Dec 2025. The current Mojo Score stands at 30.0, signalling a weak outlook. The Market Cap Grade is rated 3, indicating a mid-tier market capitalisation but not enough to offset the deteriorating technicals. This downgrade is a clear warning for investors to reassess their positions, especially given the stock’s recent underperformance relative to the broader market.

Long-Term Performance Context

Despite recent technical setbacks, NDR Auto Components Ltd has delivered impressive long-term returns. Over five years, the stock has surged by 1,161.19%, vastly outperforming the Sensex’s 61.92% gain. Over three years, the stock’s return of 427.23% dwarfs the Sensex’s 38.28%. This exceptional performance highlights the company’s strong fundamentals and growth trajectory within the Auto Components & Equipments sector. However, the current technical signals suggest that investors should be cautious in the short term and watch for confirmation of trend reversals before committing fresh capital.

Sector and Industry Considerations

NDR Auto Components Ltd operates within the Auto Components & Equipments sector, a space that has seen mixed performance amid global supply chain challenges and fluctuating demand in the automotive industry. While the sector has shown resilience, the technical deterioration in NDR’s stock price may reflect company-specific risks or profit-taking by investors. The stock’s recent underperformance relative to the Sensex and sector peers warrants close monitoring, especially as macroeconomic factors such as raw material costs and regulatory changes continue to impact the industry.

Investor Takeaway

In summary, the technical indicators for NDR Auto Components Ltd point to a bearish momentum shift, with multiple signals aligning to suggest further downside risk in the near term. The downgrade in Mojo Grade to Sell reinforces this cautious stance. However, the stock’s strong long-term returns and sector positioning mean that investors with a higher risk tolerance may consider monitoring for potential entry points once technical conditions improve. Key levels to watch include the 52-week low of ₹550.00 as potential support and the recovery of moving averages and momentum oscillators for signs of trend reversal.

Investors should balance these technical insights with fundamental analysis and broader market conditions to make informed decisions.

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