Ramkrishna Forgings Ltd Faces Bearish Momentum Amid Technical Downturn

Technical Trend Shift and Momentum Analysis

Ramkrishna Forgings Ltd’s technical trend has shifted from mildly bearish to outright bearish, signalling increased selling pressure. The stock closed at ₹497.00 on 14 Jan 2026, down 1.65% from the previous close of ₹505.35. Intraday volatility was evident, with a high of ₹508.95 and a low of ₹491.60, hovering close to its 52-week low of ₹473.35, and significantly below its 52-week high of ₹1,019.90.

The Moving Averages on the daily chart remain bearish, indicating that the short-term price action is trending downward. This is corroborated by the Bollinger Bands on both weekly and monthly timeframes, which are also bearish, suggesting that the stock price is trading near the lower band and may continue to face downward pressure.

MACD and RSI Signals

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On the weekly scale, the MACD is mildly bullish, hinting at some short-term positive momentum. However, the monthly MACD remains bearish, reflecting a longer-term downtrend. This divergence between weekly and monthly MACD readings suggests that while there may be short-lived rallies, the dominant trend remains negative.

The Relative Strength Index (RSI) on both weekly and monthly charts shows no clear signal, hovering in neutral territory. This lack of momentum confirmation from RSI indicates that the stock is neither overbought nor oversold, leaving room for further downside or sideways movement depending on broader market conditions.

Additional Technical Indicators

The Know Sure Thing (KST) oscillator aligns with the MACD’s mixed signals, showing mild bullishness on the weekly timeframe but bearishness on the monthly. The Dow Theory assessment also reflects a mildly bearish weekly trend, with no definitive trend on the monthly scale. Meanwhile, the On-Balance Volume (OBV) indicator shows no clear trend weekly but a mildly bullish signal monthly, suggesting that volume flows are not strongly supporting the price decline in the longer term.

Comparative Performance and Market Context

Ramkrishna Forgings Ltd’s recent returns have lagged behind the broader Sensex index. Over the past week, the stock declined by 5.23%, compared to the Sensex’s 1.69% fall. The one-month return was -3.70% versus Sensex’s -1.92%, and year-to-date performance shows a 5.14% loss against the Sensex’s 1.87% gain. Over the last year, the stock has dramatically underperformed with a 45.74% decline, while the Sensex gained 9.56%.

Despite this recent weakness, the stock’s longer-term performance remains robust, with three-year returns of 88.04% and five-year returns of 318.39%, significantly outpacing the Sensex’s 38.78% and 68.97% respectively. Over a decade, Ramkrishna Forgings has delivered a remarkable 468.06% return, nearly doubling the Sensex’s 236.47% gain. This contrast highlights the stock’s cyclical nature and the current phase of correction within a longer-term growth trajectory.

MarketsMOJO Ratings and Quality Grades

MarketsMOJO has recently downgraded Ramkrishna Forgings Ltd from a Sell to a Strong Sell rating as of 17 Nov 2025, reflecting a deterioration in the company’s technical and fundamental outlook. The Mojo Score currently stands at 23.0, indicating weak momentum and poor technical health. The Market Cap Grade is rated 3, suggesting a mid-tier market capitalisation relative to peers in the Auto Components & Equipments sector.

This downgrade is consistent with the bearish technical signals and the stock’s underperformance relative to the broader market. Investors should note that the downgrade reflects both price momentum concerns and a cautious stance on the company’s near-term prospects.

Sector and Industry Considerations

Operating within the Auto Components & Equipments sector, Ramkrishna Forgings faces sector-specific headwinds including supply chain disruptions, fluctuating raw material costs, and demand variability from the automotive industry. The sector itself has shown mixed technical signals, with some peers exhibiting stronger momentum and more favourable technical setups.

Given the current technical deterioration, Ramkrishna Forgings appears vulnerable relative to its sector peers, which may offer better risk-reward profiles for investors seeking exposure to auto components.

Price Levels and Support Zones

The stock’s current price near ₹497.00 is precariously close to its 52-week low of ₹473.35, suggesting limited downside cushion before significant support levels are tested. The gap between the current price and the 52-week high of ₹1,019.90 underscores the steep correction the stock has undergone over the past year.

Investors should monitor the daily moving averages closely, as sustained trading below these averages would reinforce the bearish trend and could trigger further selling pressure. Conversely, any recovery above these averages accompanied by improved volume could signal a potential technical reversal, though such a scenario appears unlikely in the near term given current indicators.

Investor Takeaway and Outlook

Ramkrishna Forgings Ltd’s technical indicators collectively point to a bearish momentum phase, with the majority of signals on daily, weekly, and monthly charts suggesting caution. The downgrade to Strong Sell by MarketsMOJO reinforces the view that the stock is currently unattractive from a risk-reward perspective.

While the stock’s long-term returns remain impressive, the near-term outlook is clouded by weak price action, negative moving averages, and bearish momentum indicators. Investors should consider the stock’s vulnerability to further declines, especially given its underperformance relative to the Sensex and sector peers.

Those holding positions may wish to monitor key support levels closely and consider risk mitigation strategies. Prospective investors might find better opportunities within the auto components sector or other industries exhibiting stronger technical and fundamental profiles.

Summary of Key Technical Metrics:

• Current Price: ₹497.00 (down 1.65% on 14 Jan 2026)


• 52-Week Range: ₹473.35 – ₹1,019.90


• Moving Averages (Daily): Bearish


• MACD: Weekly Mildly Bullish, Monthly Bearish


• RSI: Neutral (No Signal)


• Bollinger Bands: Bearish (Weekly & Monthly)


• KST: Weekly Mildly Bullish, Monthly Bearish


• Dow Theory: Weekly Mildly Bearish, Monthly No Trend


• OBV: Weekly No Trend, Monthly Mildly Bullish


• MarketsMOJO Mojo Score: 23.0 (Strong Sell)


• Market Cap Grade: 3

In conclusion, Ramkrishna Forgings Ltd is currently navigating a challenging technical landscape, with bearish momentum dominating despite some short-term bullish hints. Investors should approach the stock with caution and consider alternative opportunities until a clearer technical recovery emerges.

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