Technical Trend Overview
Recent analysis reveals that Power Grid’s technical trend has shifted from a neutral sideways stance to a mildly bearish posture. The stock closed at ₹294.65 on 20 Feb 2026, down from the previous close of ₹300.45, reflecting a daily loss of 1.93%. The intraday range was between ₹293.00 and ₹301.65, with the 52-week high at ₹321.75 and low at ₹247.50, indicating the stock remains closer to its upper range but showing signs of weakening momentum.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On the weekly timeframe, MACD remains mildly bullish, suggesting some underlying positive momentum in the short term. However, the monthly MACD has turned mildly bearish, signalling that longer-term momentum is deteriorating. This divergence between weekly and monthly MACD readings highlights a potential conflict between short-term optimism and longer-term caution.
RSI and Bollinger Bands Analysis
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory without indicating overbought or oversold conditions. This suggests that the stock is not yet at an extreme valuation level, but the lack of directional RSI momentum adds to the uncertainty.
Bollinger Bands provide further insight: weekly Bollinger Bands are bullish, indicating that the stock price is trading near the upper band, which often suggests upward momentum or volatility expansion. Conversely, the monthly Bollinger Bands are mildly bearish, implying that over a longer horizon, the stock may face resistance or consolidation pressures.
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Moving Averages and KST Indicator
Daily moving averages for Power Grid have turned mildly bearish, reflecting recent price declines and signalling potential resistance at current levels. This bearish tilt in moving averages suggests that short-term selling pressure may persist unless the stock can reclaim key support levels.
The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, shows a mildly bullish signal on the weekly chart but a mildly bearish stance on the monthly chart. This mixed reading aligns with the broader theme of short-term resilience amid longer-term caution.
Volume and Dow Theory Signals
On-Balance Volume (OBV) is mildly bullish on both weekly and monthly timeframes, indicating that volume trends are somewhat supportive of price movements. This suggests that despite recent price weakness, accumulation may be occurring, which could provide a foundation for future rallies.
Dow Theory analysis reveals a mildly bullish trend on the weekly chart but no clear trend on the monthly chart. This further emphasises the divergence between short-term optimism and longer-term uncertainty.
Comparative Performance and Market Context
Power Grid’s recent returns have outpaced the broader Sensex benchmark across multiple timeframes. Over the past week, the stock gained 0.31% while the Sensex declined 1.41%. Over one month, Power Grid surged 14.45% compared to a 0.90% drop in the Sensex. Year-to-date returns stand at 11.38% versus a 3.19% decline in the Sensex, and over one year, the stock has appreciated 11.97% against the Sensex’s 8.64% gain.
Longer-term performance is even more impressive, with three-year returns at 83.80% compared to 35.24% for the Sensex, five-year returns at 125.59% versus 62.11%, and a ten-year return of 271.51% outperforming the Sensex’s 247.96%. These figures highlight Power Grid’s strong fundamental position and resilience despite recent technical headwinds.
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Mojo Score and Ratings
Power Grid currently holds a Mojo Score of 35.0, categorised as a Sell rating by MarketsMOJO. This represents an upgrade from a previous Strong Sell grade as of 31 Dec 2024, reflecting some improvement in technical and fundamental factors. However, the Market Cap Grade remains at 1, indicating limited market capitalisation strength relative to peers.
The mixed technical signals and modest downgrade in momentum suggest investors should exercise caution. While the stock’s long-term fundamentals and relative outperformance remain robust, near-term price action is vulnerable to further downside pressure unless key technical support levels hold.
Investment Implications
For investors, the current mildly bearish technical trend combined with mixed indicator signals warrants a balanced approach. Short-term traders may look for confirmation of trend reversal or further weakness before committing, while long-term investors should consider the stock’s strong historical returns and sector leadership.
Monitoring the MACD crossover on monthly charts and the behaviour of moving averages will be critical in assessing whether the stock can regain bullish momentum. Additionally, volume trends and Bollinger Band expansions on weekly charts may provide early clues of a potential rebound or further consolidation.
Conclusion
Power Grid Corporation of India Ltd is navigating a complex technical landscape characterised by mildly bearish momentum and mixed indicator signals. While weekly charts offer some bullish optimism, monthly trends caution investors to remain vigilant. The stock’s strong relative performance against the Sensex and solid long-term returns provide a foundation for confidence, but near-term price action suggests a cautious stance is prudent.
Investors should closely watch technical developments and consider peer comparisons to identify superior opportunities within the power sector and broader market.
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