Polycab India Ltd Shows Mixed Technical Signals Amid Mild Momentum Shift

Price Movement and Market Context

On 9 January 2026, Polycab India’s share price closed at ₹7,754.85, down 1.77% from the previous close of ₹7,894.80. The stock traded within a range of ₹7,726.00 to ₹7,947.35, touching its 52-week high intraday, signalling underlying strength despite the pullback. The 52-week low stands at ₹4,557.45, highlighting the substantial appreciation over the past year and beyond.

Comparatively, Polycab has outperformed the Sensex across multiple timeframes. Over the past year, the stock delivered a 12.13% return versus the Sensex’s 7.72%. Its three-year and five-year returns are particularly impressive at 195.99% and 522.18%, respectively, dwarfing the Sensex’s 40.53% and 72.56% gains. This outperformance underscores the company’s robust growth trajectory and investor confidence.

Technical Trend Evolution

The technical trend for Polycab India has shifted from bullish to mildly bullish, indicating a moderation in upward momentum. This subtle change suggests that while the stock remains in an overall positive phase, the pace of gains may be slowing, warranting closer scrutiny by investors.

Daily moving averages continue to support a bullish stance, with the stock price maintaining levels above key averages, signalling ongoing buying interest. However, weekly and monthly indicators present a more complex scenario.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator shows a divergence in timeframes. On a weekly basis, the MACD is mildly bearish, reflecting a short-term weakening in momentum. Conversely, the monthly MACD remains bullish, suggesting that the longer-term trend is intact and positive. This divergence implies that short-term traders may face volatility, while long-term investors can remain cautiously optimistic.

Relative Strength Index (RSI) Signals

The RSI indicator, which measures the speed and change of price movements, shows no significant signal on the weekly chart, indicating a neutral momentum in the short term. However, the monthly RSI is bullish, reinforcing the longer-term strength of the stock. This combination suggests that while immediate price action may be range-bound or consolidative, the broader trend favours accumulation.

Bollinger Bands and Price Volatility

Bollinger Bands on the weekly timeframe are moving sideways, indicating a period of consolidation with limited volatility. This sideways movement often precedes a breakout or breakdown, making it a critical phase for traders to monitor. On the monthly scale, Bollinger Bands remain bullish, consistent with the overall positive momentum in the stock’s price over a longer horizon.

Other Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) oscillator, which helps identify major price cycles, is mildly bearish on both weekly and monthly charts. This suggests some caution as momentum may be waning in the intermediate term. However, Dow Theory assessments remain bullish across weekly and monthly timeframes, indicating that the primary trend is still upward and supported by market breadth.

On-Balance Volume (OBV), a volume-based indicator that measures buying and selling pressure, is mildly bearish on both weekly and monthly scales. This divergence between price and volume could signal a potential weakening of the current trend, highlighting the importance of monitoring volume flows closely for confirmation of any trend reversals.

Mojo Score and Analyst Ratings

Polycab India holds a Mojo Score of 71.0, categorised as a Buy, an upgrade from its previous Hold rating as of 21 July 2025. This upgrade reflects improved technical and fundamental parameters, signalling increased confidence among analysts. The company’s Market Cap Grade is 2, indicating a mid-cap status with solid market presence but room for growth relative to larger peers.

Despite a recent day decline of 1.77%, the overall technical and fundamental backdrop supports a positive medium to long-term outlook. Investors should weigh the mildly bearish short-term signals against the robust monthly and daily bullish indicators.

Sector and Industry Positioning

Operating within the Cables - Electricals sector, Polycab India benefits from steady demand driven by infrastructure development and electrification trends across India. The sector’s cyclical nature means that technical momentum shifts can be influenced by broader economic factors, including commodity prices and government policies.

Polycab’s superior returns relative to the Sensex over multiple periods underscore its competitive positioning and operational execution. The company’s ability to sustain growth amid sector volatility is a key factor supporting its upgraded rating.

Investor Takeaway and Outlook

Polycab India’s technical indicators present a nuanced picture. The mildly bullish trend and strong daily moving averages suggest that the stock remains in an uptrend, supported by positive monthly MACD and RSI readings. However, the mildly bearish weekly MACD, KST, and OBV indicators caution investors about potential short-term volatility or consolidation phases.

Given the stock’s strong relative performance against the Sensex and its upgraded Mojo Grade to Buy, investors with a medium to long-term horizon may find Polycab India an attractive proposition. The current technical setup advises a balanced approach, combining patience with vigilance for any signs of trend reversal or acceleration.

Market participants should continue monitoring volume trends and momentum oscillators closely, especially as Bollinger Bands indicate a sideways movement on the weekly chart, which often precedes significant price action.

In summary, Polycab India Ltd remains a fundamentally sound and technically interesting stock within the Cables - Electricals sector, with a cautiously optimistic outlook supported by a blend of bullish and mildly bearish signals across multiple timeframes.

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