Technical Momentum and Price Action
Rajoo Engineers closed at ₹61.00 on 2 Feb 2026, down 3.71% from the previous close of ₹63.35. The intraday range saw a low of ₹60.05, touching near its 52-week low of ₹60.05, while the high was ₹64.00, far below the 52-week peak of ₹188.00. This sharp decline reflects a weakening price momentum, with the stock now trading close to its annual lows.
The technical trend has deteriorated from mildly bearish to outright bearish, indicating that sellers are gaining control. This shift is corroborated by the daily moving averages, which remain firmly bearish, signalling that the stock is trading below key average price levels and that downward pressure is likely to persist in the short term.
MACD and RSI Signals
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On the weekly chart, the MACD remains mildly bullish, suggesting some underlying positive momentum over the medium term. However, the monthly MACD is bearish, indicating that the longer-term momentum is weakening. This divergence between weekly and monthly MACD readings points to a potential conflict between short-term recovery attempts and a more entrenched downtrend.
Meanwhile, the Relative Strength Index (RSI) on both weekly and monthly timeframes shows no clear signal, hovering in neutral zones. This lack of momentum confirmation from RSI suggests that the stock is neither oversold nor overbought, leaving room for further downside or sideways consolidation before a decisive move emerges.
Bollinger Bands and KST Analysis
Bollinger Bands on both weekly and monthly charts are bearish, indicating that price volatility is skewed towards the downside. The stock price is likely trading near or below the lower band, which often signals strong selling pressure and a potential continuation of the downtrend.
The Know Sure Thing (KST) indicator, a momentum oscillator, confirms this bearish stance with a weekly reading firmly bearish and a monthly reading mildly bearish. This alignment across multiple timeframes reinforces the negative momentum outlook for Rajoo Engineers.
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Volume and Trend Confirmation
On-Balance Volume (OBV) readings for Rajoo Engineers show no clear trend on both weekly and monthly charts, indicating that volume is not confirming the price moves decisively. This absence of volume support for the recent price declines suggests that the selling pressure may not yet be fully backed by strong investor conviction, leaving open the possibility of short-term volatility or consolidation.
Dow Theory assessments align with the broader bearish narrative, with weekly and monthly readings mildly bearish. This suggests that the stock is in a corrective phase within a longer-term downtrend, consistent with the technical deterioration observed across other indicators.
Comparative Returns and Market Context
Despite the current technical weakness, Rajoo Engineers has delivered exceptional long-term returns compared to the Sensex. Over the past 10 years, the stock has surged by 570.33%, vastly outperforming the Sensex’s 224.57% gain. Similarly, over five years, Rajoo Engineers posted a 523.40% return versus the Sensex’s 74.40%, and over three years, a 332.62% gain compared to 35.67% for the benchmark.
However, recent performance has been disappointing. Year-to-date, the stock has declined 4.91%, slightly better than the Sensex’s 5.28% fall, but over the past year, Rajoo Engineers plunged 66.67% while the Sensex gained 5.16%. This stark underperformance highlights the stock’s vulnerability amid broader market strength and sector rotation.
Market Capitalisation and Mojo Ratings
Rajoo Engineers holds a market cap grade of 3, reflecting its small-cap status within the industrial manufacturing sector. The company’s Mojo Score currently stands at 43.0, with a Mojo Grade of Sell, downgraded from Hold as of 1 Feb 2025. This downgrade reflects the deteriorating technical and fundamental outlook, signalling caution for investors.
Outlook and Investor Considerations
The confluence of bearish technical indicators, including daily moving averages, Bollinger Bands, and KST, alongside a negative monthly MACD and Dow Theory signals, suggests that Rajoo Engineers is likely to face continued downward pressure in the near term. The lack of volume confirmation and neutral RSI readings imply that the stock may experience choppy trading or consolidation before any meaningful recovery.
Investors should weigh the stock’s impressive long-term returns against its current technical weakness and sector challenges. Given the downgrade to a Sell rating and the prevailing bearish momentum, cautious investors may prefer to await clearer signs of trend reversal or consider alternative opportunities within the industrial manufacturing space.
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Summary
Rajoo Engineers Ltd is currently navigating a challenging technical landscape marked by bearish momentum and weakening price action. While the stock’s long-term performance remains impressive, recent technical signals and a downgrade to a Sell rating underscore the risks ahead. Investors should monitor key technical levels and broader market conditions closely before committing fresh capital to this industrial manufacturing stock.
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