Technical Trend Overview and Momentum Shift
Recent technical assessments reveal that Patanjali Foods Ltd’s trend has shifted from mildly bearish to outright bearish. The daily moving averages have turned bearish, indicating that short-term price momentum is weakening. The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, remains bearish on the weekly chart and mildly bearish on the monthly chart, signalling that downward momentum is persisting but with some potential for stabilisation over the longer term.
The Relative Strength Index (RSI), however, shows no clear signal on both weekly and monthly timeframes, suggesting that the stock is neither overbought nor oversold at present. This neutral RSI reading implies that while momentum is negative, there is no extreme condition that might trigger an immediate reversal.
Bollinger Bands and KST Indicators Confirm Bearish Bias
Bollinger Bands, which measure volatility and price levels relative to moving averages, are mildly bearish on both weekly and monthly charts. This indicates that price volatility is skewed towards the downside, with the stock price likely trading near the lower band, a sign of bearish pressure. The Know Sure Thing (KST) indicator, another momentum oscillator, aligns with this view, showing bearish signals on the weekly chart and mildly bearish on the monthly chart.
Meanwhile, the Dow Theory analysis reveals no clear trend on the weekly timeframe but mildly bearish conditions on the monthly scale, reinforcing the cautious outlook for Patanjali Foods over the medium term.
On-Balance Volume and Price Action
Interestingly, the On-Balance Volume (OBV) indicator presents a bullish signal on the monthly chart, suggesting that despite price weakness, buying volume has been relatively strong. This divergence between price and volume could indicate accumulation by informed investors, potentially providing a floor for the stock price in the near term.
On 17 Feb 2026, Patanjali Foods closed at ₹525.40, up 0.59% from the previous close of ₹522.30. The intraday high was ₹526.55 and the low ₹516.30, reflecting a narrow trading range. The stock remains well below its 52-week high of ₹663.96 but comfortably above its 52-week low of ₹480.70, indicating a consolidation phase within a broader downtrend.
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Mojo Score Downgrade and Market Capitalisation Insights
Patanjali Foods’ Mojo Score currently stands at 44.0, with a Mojo Grade of Sell, downgraded from Hold on 16 Feb 2026. This downgrade reflects the deteriorating technical and fundamental outlook for the stock. The Market Cap Grade is rated 2, indicating a relatively modest market capitalisation compared to peers in the edible oil sector.
The downgrade is consistent with the bearish technical signals and suggests that investors should exercise caution. The stock’s technical deterioration is compounded by its recent price returns, which have underperformed the benchmark Sensex over key periods.
Comparative Returns Against Sensex Benchmark
Analysing Patanjali Foods’ returns relative to the Sensex reveals a mixed performance. Over the past week, the stock declined by 1.27%, slightly worse than the Sensex’s 0.94% fall. However, over the last month, Patanjali Foods gained 0.74%, outperforming the Sensex’s 0.35% decline. Year-to-date, the stock is down 3.80%, lagging behind the Sensex’s 2.28% loss.
Longer-term returns show a more positive picture, with the stock delivering 69.81% over three years and an impressive 137.63% over five years, both significantly outperforming the Sensex’s 35.81% and 59.83% returns respectively. Over a decade, Patanjali Foods has delivered a staggering 7023.58% return, dwarfing the Sensex’s 259.08% gain, highlighting its strong growth trajectory despite recent technical setbacks.
Moving Averages and Daily Price Action
The daily moving averages have turned bearish, signalling that the short-term trend is negative. This is a critical technical development as moving averages often act as dynamic support or resistance levels. The stock’s inability to sustain above these averages suggests selling pressure remains dominant.
Today’s price action, with a high of ₹526.55 and low of ₹516.30, shows limited volatility, indicating a consolidation phase. This could precede a decisive move either to the upside or downside, depending on broader market cues and sectoral developments.
Sector and Industry Context
Patanjali Foods operates within the edible oil industry, a sector that has faced volatility due to fluctuating commodity prices, regulatory changes, and shifting consumer demand. The sector’s performance often correlates with agricultural output and import-export dynamics, factors that can influence stock momentum.
Given the current bearish technical signals, investors should monitor sectoral trends closely, as a recovery in edible oil prices or favourable policy announcements could provide a catalyst for Patanjali Foods to regain positive momentum.
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Investor Takeaway and Outlook
In summary, Patanjali Foods Ltd is currently navigating a challenging technical landscape. The shift from mildly bearish to bearish across multiple indicators such as MACD, moving averages, Bollinger Bands, and KST suggests that downward momentum is gaining traction. The absence of RSI extremes indicates no immediate reversal signals, while the bullish OBV on the monthly chart hints at underlying accumulation.
Investors should weigh these technical signals alongside the company’s fundamental prospects and sectoral conditions. The recent Mojo Grade downgrade to Sell underscores the need for caution, especially given the stock’s underperformance relative to the Sensex over shorter timeframes.
Long-term investors may find comfort in the stock’s impressive multi-year returns, but near-term traders should be vigilant for confirmation of trend direction before committing fresh capital. Monitoring daily price action around key moving averages and volume patterns will be crucial in anticipating the next significant move.
Overall, Patanjali Foods remains a stock with strong historical growth but currently faces technical headwinds that require careful analysis and risk management.
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