Polycab India Ltd Technical Momentum Shifts Signal Bullish Outlook

Technical Trend Evolution and Price Action

Polycab India’s technical trend has recently transitioned from mildly bullish to outright bullish, reflecting growing investor confidence. The stock closed at ₹7,750.00, down 0.97% from the previous close of ₹7,826.10, with intraday price fluctuations ranging between ₹7,727.00 and ₹7,898.00. While the day’s decline may appear modest, it is important to contextualise this within the broader technical framework, which remains constructive.

The 52-week price range of ₹4,557.45 to ₹7,947.35 highlights the stock’s strong upward trajectory over the past year, with the current price hovering near its annual high. This proximity to the peak price level underscores the resilience of Polycab’s share price amid market volatility.

MACD and RSI: Divergent Signals Across Timeframes

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bearish, suggesting some short-term consolidation or profit-taking. However, the monthly MACD has turned bullish, signalling that the longer-term momentum is gaining strength. This divergence indicates that while short-term traders may exercise caution, the broader trend favours accumulation.

Complementing this, the Relative Strength Index (RSI) on the weekly chart currently shows no definitive signal, implying a neutral stance in the near term. Conversely, the monthly RSI is bullish, reinforcing the positive momentum over a longer horizon. The monthly RSI’s upward trajectory suggests that the stock is not yet overbought and retains room for further appreciation.

Moving Averages and Bollinger Bands Confirm Uptrend

Daily moving averages for Polycab India are firmly bullish, with the stock price trading above key averages such as the 50-day and 200-day moving averages. This alignment is a classic hallmark of a sustained uptrend, providing dynamic support levels for the stock.

Bollinger Bands on both weekly and monthly charts are also bullish, indicating that price volatility is expanding in favour of upward movement. The stock’s recent price action near the upper Bollinger Band suggests strong buying interest, although investors should remain mindful of potential short-term pullbacks.

Other Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) oscillator remains mildly bearish on both weekly and monthly charts, signalling some caution in momentum strength. This suggests that while the overall trend is positive, the pace of gains may moderate in the near term.

Dow Theory assessments provide a mildly bullish outlook on the weekly timeframe, though no clear trend is established monthly. This mixed reading indicates that the market is in a phase of selective strength, with potential for further upside if confirmed by volume and price action.

On-Balance Volume (OBV) is mildly bullish weekly but shows no definitive trend monthly. The weekly OBV improvement suggests that buying volume is supporting price advances, a positive sign for sustaining the uptrend.

Comparative Performance: Polycab India vs Sensex

Polycab India’s returns have significantly outpaced the Sensex across multiple time horizons, underscoring its strong market position. Over the past one year, the stock has delivered a remarkable 38.44% return compared to the Sensex’s 8.64%. The three-year and five-year returns are even more impressive at 157.14% and 483.28%, respectively, dwarfing the Sensex’s 35.24% and 62.11% gains over the same periods.

Shorter-term returns also reflect relative strength, with a 1-month gain of 4.46% against the Sensex’s decline of 0.90%, and a year-to-date return of 1.6% versus the Sensex’s negative 3.19%. Even the one-week performance shows Polycab India’s resilience, with a smaller loss of 0.2% compared to the Sensex’s 1.41% drop.

Mojo Score Upgrade and Market Capitalisation Insights

Reflecting these positive developments, Polycab India’s Mojo Score has improved to 78.0, earning a Buy grade from MarketsMOJO, upgraded from a previous Hold on 21 July 2025. This upgrade signals enhanced confidence in the stock’s prospects based on a comprehensive evaluation of fundamentals and technicals.

The company holds a Market Cap Grade of 1, indicating a large-cap status with strong market capitalisation metrics. This stature provides liquidity and stability, making Polycab India an attractive proposition for institutional and retail investors alike.

Investment Outlook and Considerations

Polycab India’s technical indicators collectively point to a bullish momentum shift, particularly over the medium and long term. The monthly MACD and RSI readings, combined with daily moving averages and Bollinger Bands, suggest that the stock is well-positioned for further gains. However, the mildly bearish weekly MACD and KST oscillators advise caution for short-term traders, who may want to await confirmation of sustained momentum before increasing exposure.

Investors should also monitor volume trends and broader market conditions, as the Dow Theory and OBV signals remain mixed. Given the stock’s strong relative performance versus the Sensex and the recent Mojo Score upgrade, Polycab India remains a compelling candidate for investors seeking exposure to the cables and electricals sector with a growth orientation.

Overall, the technical parameter changes reinforce a positive outlook, favouring accumulation with a medium- to long-term horizon. The stock’s proximity to its 52-week high and robust fundamental backdrop further support this stance.

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