Radico Khaitan Ltd. Technical Momentum Shifts Amid Mixed Indicator Signals

Technical Momentum and Trend Analysis

As of 5 Feb 2026, Radico Khaitan’s share price closed at ₹2,769.00, marginally down by 0.02% from the previous close of ₹2,769.55. The stock’s intraday range was between ₹2,742.65 and ₹2,846.25, reflecting moderate volatility. Over the past 52 weeks, the stock has traded between ₹1,846.10 and ₹3,695.00, indicating a wide price band and significant historical price appreciation.

The technical trend has shifted from mildly bullish to sideways, suggesting a consolidation phase after recent gains. This is corroborated by the Moving Average Convergence Divergence (MACD) indicator, which remains mildly bearish on both weekly and monthly charts. The MACD’s negative momentum indicates that the recent upward price momentum is losing steam, cautioning investors about potential short-term weakness.

Meanwhile, the Relative Strength Index (RSI) presents a mixed picture. The weekly RSI shows no clear signal, hovering in a neutral zone, whereas the monthly RSI remains bullish, signalling underlying strength over a longer horizon. This divergence suggests that while short-term momentum is uncertain, the stock retains a positive bias in the medium term.

Bollinger Bands and Moving Averages: Conflicting Signals

Bollinger Bands, which measure price volatility and potential overbought or oversold conditions, are bearish on the weekly timeframe but mildly bullish on the monthly scale. The weekly bearishness implies that the stock price is currently closer to the lower band, hinting at short-term selling pressure or consolidation. Conversely, the monthly mild bullishness suggests that the broader trend remains intact, with potential for upward movement if volatility subsides.

Daily moving averages continue to show a mildly bullish stance, with the stock price trading near or slightly above key averages such as the 50-day and 200-day moving averages. This alignment typically indicates that the stock is maintaining support levels and could resume upward momentum if buying interest strengthens.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) oscillator, a momentum indicator, is mildly bearish on both weekly and monthly charts, reinforcing the cautious tone set by the MACD. Dow Theory analysis also signals a mildly bearish trend on the weekly timeframe, with no clear trend on the monthly scale. This suggests that the stock is in a phase of indecision, lacking a definitive directional bias in the short term.

On-Balance Volume (OBV), which tracks volume flow to confirm price trends, is mildly bearish weekly and neutral monthly. The weekly OBV decline indicates that selling volume may be outweighing buying volume recently, which could pressure prices lower if sustained.

Performance Comparison with Sensex

Despite recent technical caution, Radico Khaitan’s long-term performance remains impressive. Over the past year, the stock has delivered a 19.94% return, significantly outperforming the Sensex’s 6.66% gain. Over three and five years, the stock’s returns have been 141.45% and 427.83% respectively, dwarfing the Sensex’s 37.76% and 65.60% gains. The ten-year return is particularly striking at 2,434.55%, compared to the Sensex’s 244.38%, underscoring Radico Khaitan’s strong growth trajectory over the long haul.

However, shorter-term returns have been less favourable. Year-to-date, the stock is down 16.00%, underperforming the Sensex’s modest 1.65% decline. Similarly, the one-month return of -10.54% contrasts with the Sensex’s -2.27%, highlighting recent headwinds that have tempered investor enthusiasm.

Mojo Score and Rating Update

MarketsMOJO assigns Radico Khaitan a Mojo Score of 60.0, reflecting a Hold rating, downgraded from a previous Buy on 4 Feb 2026. This adjustment aligns with the recent technical shift from mildly bullish to sideways momentum and the mixed signals from key indicators. The Market Cap Grade remains low at 2, indicating a relatively modest market capitalisation compared to larger peers in the beverages sector.

The downgrade to Hold suggests that while the stock retains growth potential, investors should exercise caution amid the current consolidation phase and monitor for clearer directional cues before committing additional capital.

Investor Implications and Outlook

For investors, the current technical landscape of Radico Khaitan indicates a period of consolidation and uncertainty in the short term. The mildly bearish MACD and KST, combined with neutral to bullish RSI and moving averages, suggest that the stock is balancing between profit-taking and renewed buying interest.

Given the stock’s strong long-term performance relative to the Sensex and its sector, patient investors may view the current sideways trend as an opportunity to accumulate shares at a more attractive valuation. However, those seeking momentum-driven trades should be cautious until the technical indicators provide a more definitive bullish signal.

Monitoring the weekly Bollinger Bands and OBV will be critical in the coming weeks to gauge whether selling pressure abates or intensifies. A breakout above the recent intraday high of ₹2,846.25 accompanied by volume support could signal a resumption of the uptrend.

Summary

Radico Khaitan Ltd. currently exhibits a complex technical profile with a shift from mildly bullish to sideways momentum. Mixed signals from MACD, RSI, Bollinger Bands, and moving averages suggest a consolidation phase with potential for either a renewed rally or further correction. The stock’s long-term outperformance relative to the Sensex and sector peers remains a positive backdrop, but short-term caution is warranted.

Investors should closely monitor volume trends and key technical levels for confirmation of the next directional move. The downgrade to a Hold rating by MarketsMOJO reflects this cautious stance, advising a wait-and-watch approach until clearer momentum emerges.

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