NIBE Ltd Technical Momentum Shifts Amid Bearish Signals

Recent Price Movement and Market Context

On 10 Feb 2026, NIBE Ltd closed at ₹1,010.15, down 1.14% from the previous close of ₹1,021.80. The stock traded within a range of ₹1,010.00 to ₹1,032.75 during the day, remaining significantly below its 52-week high of ₹2,000.55, while comfortably above its 52-week low of ₹753.05. This price action reflects ongoing volatility and a struggle to regain upward momentum.

Comparing returns against the benchmark Sensex reveals a stark contrast. Over the past week, NIBE declined by 3.88%, whereas the Sensex gained 2.94%. The one-month return shows a sharper divergence, with NIBE falling 17.26% against a modest 0.59% rise in the Sensex. Year-to-date, the stock is down 8.99%, while the Sensex is down 1.36%. Over the last year, NIBE has underperformed significantly, dropping 36.43% compared to the Sensex’s 7.97% gain. However, the stock’s long-term performance remains impressive, with 3-year, 5-year, and 10-year returns of 124.98%, 4,565.82%, and 12,526.88% respectively, far outpacing the Sensex’s corresponding returns of 38.25%, 63.78%, and 249.97%.

Technical Indicators Signal Bearish Momentum

The technical trend for NIBE has shifted from mildly bearish to outright bearish, reflecting a deterioration in price momentum. The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture: the weekly MACD is bearish, confirming short-term downward momentum, while the monthly MACD remains mildly bearish, indicating that longer-term momentum is weakening but not yet decisively negative.

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This suggests that the stock is neither oversold nor overbought, but the absence of bullish RSI momentum adds to the cautious outlook.

Bollinger Bands reinforce the bearish stance, with both weekly and monthly readings indicating the stock price is trending towards the lower band, signalling increased selling pressure and volatility. Daily moving averages also confirm a bearish trend, with the stock price trading below key averages, signalling resistance to upward price movement.

Additional Technical Measures and Market Sentiment

The Know Sure Thing (KST) indicator offers a nuanced view: weekly KST is mildly bullish, hinting at some short-term positive momentum, but the monthly KST remains mildly bearish, aligning with the broader negative trend. The Dow Theory analysis shows no clear trend on weekly or monthly timeframes, reflecting market indecision.

On-Balance Volume (OBV) analysis reveals no significant trend on the weekly chart, but a mildly bullish signal on the monthly chart suggests that volume accumulation may be occurring, potentially providing some support to the stock price in the longer term.

Mojo Score and Analyst Ratings

NIBE Ltd’s current Mojo Score stands at 20.0, reflecting a strong sell recommendation. This represents a downgrade from the previous Sell grade on 8 Sep 2025, signalling increased caution from MarketsMOJO analysts. The company’s Market Cap Grade is 3, indicating a mid-tier market capitalisation relative to peers in the Aerospace & Defense sector.

The downgrade to Strong Sell is consistent with the deteriorating technical indicators and recent price weakness. Investors should note that the bearish technical trend and negative momentum indicators suggest limited near-term upside potential.

Sector and Industry Context

Operating within the Aerospace & Defense sector, NIBE Ltd faces sector-specific headwinds including geopolitical uncertainties, fluctuating defence budgets, and supply chain disruptions. These factors may be contributing to the stock’s technical weakness and subdued investor sentiment. Compared to the broader sector, NIBE’s technical deterioration is more pronounced, underscoring the need for careful monitoring.

Investment Implications and Outlook

Given the current technical landscape, investors should approach NIBE Ltd with caution. The bearish signals from MACD, Bollinger Bands, and moving averages suggest that the stock may continue to face downward pressure in the short to medium term. The lack of strong RSI signals and mixed KST readings imply that any recovery could be tentative and vulnerable to reversal.

Long-term investors may find comfort in the stock’s impressive multi-year returns, but the recent momentum shift and strong sell rating indicate that timing entry points will be critical. Active traders should consider waiting for confirmation of a trend reversal before increasing exposure.

Summary

NIBE Ltd’s technical parameters have shifted decisively towards bearish territory, with key indicators such as MACD, Bollinger Bands, and moving averages signalling downward momentum. Despite a neutral RSI and mixed KST readings, the overall trend suggests caution. The stock’s recent underperformance relative to the Sensex and the downgrade to a Strong Sell rating by MarketsMOJO reinforce the need for prudence.

While the company’s long-term returns remain robust, the current technical environment and sector challenges imply that investors should carefully assess risk before committing fresh capital. Monitoring for signs of momentum recovery will be essential for those considering entry or re-entry into the stock.

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