Technical Trend Overview
Recent analysis reveals that NDR Auto Components Ltd’s technical trend has deteriorated from mildly bearish to outright bearish. This shift is underscored by a confluence of negative signals from several widely followed technical indicators. The Moving Average Convergence Divergence (MACD) remains bearish on the weekly chart and mildly bearish on the monthly chart, indicating persistent downward momentum but with some longer-term moderation.
The Relative Strength Index (RSI) presents a mixed picture: weekly RSI readings are bullish, suggesting short-term oversold conditions or potential for a bounce, while the monthly RSI shows no clear signal, reflecting uncertainty in the broader trend. Meanwhile, Bollinger Bands on the weekly timeframe are bearish, signalling price pressure near the lower band, whereas monthly Bollinger Bands remain sideways, indicating consolidation over the longer term.
Daily moving averages have turned bearish, reinforcing the short-term downtrend. The Know Sure Thing (KST) oscillator aligns with this view, showing bearish momentum weekly and mildly bearish monthly. Dow Theory assessments also reflect a mildly bearish stance on the weekly scale, with no definitive trend on the monthly scale. On-Balance Volume (OBV) is mildly bearish weekly, suggesting volume is not supporting price advances, while monthly OBV remains trendless.
Price Action and Volatility
The stock’s current price of ₹797.10 is down from the previous close of ₹813.00, with intraday trading ranging between ₹795.20 and ₹809.00. This places the stock significantly below its 52-week high of ₹1,218.70, though comfortably above its 52-week low of ₹550.00. The downward price movement over recent weeks has been sharper than the benchmark Sensex, which has shown modest gains.
Specifically, NDR Auto Components Ltd has posted a one-week return of -2.69% compared to the Sensex’s 0.46%, and a one-month return of -4.76% against the Sensex’s -0.76%. Year-to-date, the stock has declined by 4.62%, while the Sensex has marginally fallen by 0.18%. Over longer horizons, however, the stock has outperformed significantly, with a three-year return of 443.17% versus the Sensex’s 42.01%, and a five-year return of 1,261.4% compared to the Sensex’s 76.57%. This highlights the stock’s strong historical growth despite recent technical weakness.
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Mojo Score and Grade Implications
NDR Auto Components Ltd currently holds a Mojo Score of 36.0, categorised as a Sell rating, a downgrade from its previous Hold grade. This change, effective from 22 Dec 2025, reflects the deteriorating technical and fundamental outlook. The company’s Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers in the Auto Components & Equipments sector.
The downgrade signals caution for investors, as the combination of bearish technical indicators and a declining price trend suggests limited near-term upside. The stock’s technical weakness is compounded by its underperformance relative to the Sensex in recent periods, despite its impressive long-term returns.
Sector and Industry Context
Operating within the Auto Components & Equipments sector, NDR Auto Components Ltd faces sector-specific headwinds that may be influencing its technical profile. The sector has experienced volatility due to fluctuating demand in the automotive industry, supply chain disruptions, and raw material cost pressures. These factors can exacerbate price momentum shifts and contribute to bearish technical signals.
Investors should weigh these sector dynamics alongside the company’s individual technical indicators when assessing the stock’s prospects. The mixed signals from oscillators like RSI and MACD suggest potential for short-term rebounds, but the prevailing trend remains negative.
Key Technical Indicators in Detail
The MACD’s bearish weekly reading indicates that the short-term moving average is below the longer-term moving average, confirming downward momentum. The mildly bearish monthly MACD suggests that while the longer-term trend is still negative, the pace of decline may be moderating.
The weekly RSI’s bullish stance, typically signalling oversold conditions, could hint at a near-term corrective bounce. However, the absence of a monthly RSI signal tempers enthusiasm for a sustained recovery. Bollinger Bands’ bearish weekly position shows price pressure near the lower band, often a sign of increased volatility and potential continuation of the downtrend.
Daily moving averages being bearish further confirm the short-term weakness, while the KST oscillator’s bearish readings reinforce the momentum loss. Dow Theory’s mildly bearish weekly trend aligns with these findings, though the lack of a monthly trend suggests the longer-term picture remains uncertain.
OBV’s mildly bearish weekly reading indicates that volume is not supporting price gains, a negative sign for bulls. The lack of monthly OBV trend suggests volume patterns have not decisively shifted over the longer term.
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Investor Takeaway and Outlook
For investors, the current technical landscape of NDR Auto Components Ltd suggests prudence. The bearish momentum across multiple indicators and the recent downgrade in Mojo Grade to Sell highlight the risks of further downside in the near term. While the weekly RSI’s bullish signal offers a glimmer of hope for a short-lived rebound, the broader trend remains unfavourable.
Long-term investors may find comfort in the stock’s impressive multi-year returns, which have significantly outpaced the Sensex. However, those with shorter investment horizons should monitor technical developments closely and consider sectoral headwinds impacting the auto components industry.
In summary, NDR Auto Components Ltd is currently navigating a challenging technical environment marked by bearish momentum and weakening price action. Investors should balance these signals with fundamental analysis and sector outlook before making allocation decisions.
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