Popular Vehicles & Services Ltd Faces Bearish Momentum Amid Technical Downturn

Technical Momentum Shifts to Bearish Territory

Popular Vehicles & Services Ltd (stock code 10039199) closed at ₹112.70 on 12 Feb 2026, down 6.01% from the previous close of ₹119.90. The stock’s intraday range was between ₹111.30 and ₹118.50, reflecting heightened volatility. Over the past week, the stock has declined by 3.96%, contrasting with the Sensex’s modest 0.50% gain during the same period. This divergence highlights the stock’s underperformance relative to the broader market.

From a technical perspective, the trend has shifted from mildly bearish to outright bearish. The daily moving averages have turned decisively negative, with the stock trading below its key short-term and medium-term averages. This downward momentum is corroborated by the weekly MACD indicator, which remains bearish, signalling that the stock’s momentum is weakening on a medium-term basis. The monthly MACD, however, remains neutral, indicating that longer-term momentum has yet to confirm a sustained downtrend.

RSI and Bollinger Bands Indicate Caution

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in a neutral zone. This suggests that while the stock is not yet oversold, it lacks the bullish momentum needed to reverse the downtrend. Meanwhile, Bollinger Bands on the weekly chart have turned bearish, with the price approaching the lower band, indicating increased selling pressure. The monthly Bollinger Bands remain mildly bearish, reflecting a cautious outlook over the longer term.

Additional Technical Indicators Confirm Weakness

The Know Sure Thing (KST) indicator on the weekly timeframe is bearish, reinforcing the negative momentum. On the monthly scale, the KST remains inconclusive, mirroring the mixed signals from the MACD. The On-Balance Volume (OBV) indicator shows no clear trend on the weekly chart but is mildly bearish on the monthly chart, suggesting that volume flows are not supporting a price recovery.

Interestingly, the Dow Theory assessment offers a mildly bullish signal on the weekly chart, hinting at some underlying strength or potential support levels. However, this is contradicted by the broader technical picture, which remains predominantly bearish.

Price Performance in Context

Popular Vehicles & Services Ltd’s current price of ₹112.70 is significantly below its 52-week high of ₹163.05, representing a decline of approximately 31%. The stock’s 52-week low stands at ₹87.28, indicating that while the current price is closer to the lower end of its range, it has not yet reached extreme lows. Over the past year, the stock has delivered a negative return of 20.07%, starkly underperforming the Sensex, which gained 10.41% over the same period.

Shorter-term returns show a mixed picture: a modest 1.26% gain over the past month compared to the Sensex’s 0.79%, and a slight positive return year-to-date of 0.27% versus the Sensex’s negative 1.16%. These figures suggest some recent resilience, but the overall trend remains weak.

Mojo Score and Market Capitalisation Insights

MarketsMOJO assigns Popular Vehicles & Services Ltd a Mojo Score of 34.0, categorising it as a Sell. This represents a downgrade from a previous Strong Sell rating as of 19 Jan 2026, reflecting a slight improvement in sentiment but still indicating caution. The company’s market cap grade stands at 4, signalling a relatively small market capitalisation within the automobile sector.

The downgrade in technical trend to bearish aligns with the Mojo Grade, underscoring the need for investors to exercise prudence. The stock’s technical deterioration, combined with its underwhelming returns relative to the Sensex, suggests that it remains a challenging proposition for investors seeking momentum plays in the automobile space.

Sector and Industry Context

Within the automobile industry, Popular Vehicles & Services Ltd faces stiff competition and sectoral headwinds. The broader automobile sector has shown mixed performance amid fluctuating demand and supply chain disruptions. While some peers have managed to capitalise on recovery trends, Popular Vehicles’ technical indicators suggest it has yet to regain robust upward momentum.

Investors should note that the stock’s technical weakness is not isolated but reflects broader sectoral challenges. The bearish signals from moving averages and MACD, coupled with neutral RSI readings, indicate that any recovery may be tentative and require confirmation through sustained volume and price strength.

Investor Takeaway and Outlook

Given the current technical landscape, Popular Vehicles & Services Ltd appears to be in a consolidation phase with bearish momentum dominating near-term price action. The stock’s failure to hold above key moving averages and the bearish weekly MACD suggest that downside risks remain elevated. Investors should monitor the RSI for any signs of oversold conditions that might precede a technical rebound.

Longer-term investors may find the stock’s valuation attractive relative to its 52-week high, but the absence of strong bullish signals from monthly indicators advises caution. The mildly bullish Dow Theory weekly signal offers a glimmer of hope, but it is insufficient to offset the prevailing negative technical sentiment.

In summary, Popular Vehicles & Services Ltd currently exhibits a technical profile consistent with a Sell rating, supported by a Mojo Score of 34.0 and a recent downgrade from Strong Sell. Market participants should weigh these technical factors alongside fundamental developments and sector trends before making investment decisions.

Comparative Performance Summary

To place the stock’s performance in perspective, Popular Vehicles & Services Ltd’s returns over various periods compared to the Sensex are as follows:

• 1 Week: -3.96% vs Sensex +0.50%
• 1 Month: +1.26% vs Sensex +0.79%
• Year-to-Date: +0.27% vs Sensex -1.16%
• 1 Year: -20.07% vs Sensex +10.41%
• 3, 5, 10 Years: Data not available for stock; Sensex up 38.81%, 63.46%, and 267.00% respectively

This data underscores the stock’s relative weakness over the medium term, despite some short-term resilience.

Conclusion

Popular Vehicles & Services Ltd’s technical indicators collectively point to a bearish momentum phase, with key signals such as the MACD, moving averages, and Bollinger Bands confirming downside pressure. While some neutral and mildly bullish signals exist, they are insufficient to reverse the prevailing trend. Investors should remain cautious and consider alternative opportunities within the automobile sector or broader market that demonstrate stronger technical and fundamental profiles.

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