Ratnamani Metals & Tubes Ltd Faces Bearish Technical Shift Amid Price Momentum Decline

Technical Trend Shift and Price Momentum

Ratnamani Metals & Tubes Ltd (NSE: RATNAMANI) has seen its technical trend downgrade from mildly bearish to outright bearish as of early February 2026. The stock closed at ₹2,142.50 on 17 Feb 2026, down 4.84% from the previous close of ₹2,251.40. Intraday, the price fluctuated between ₹2,142.50 and ₹2,283.55, reflecting heightened volatility. This decline places the stock closer to its 52-week low of ₹1,900.05, well below its 52-week high of ₹3,044.10, signalling a significant retracement from recent peaks.

Comparatively, the broader Sensex index has shown resilience, with a 1-year return of 9.66%, whereas Ratnamani Metals has declined by 14.37% over the same period. Year-to-date, the stock is down 10.01%, underperforming the Sensex’s modest 2.28% decline. This divergence highlights sector-specific headwinds and company-specific challenges impacting investor sentiment.

MACD and Momentum Oscillators Confirm Bearish Bias

The Moving Average Convergence Divergence (MACD) indicator remains firmly bearish on both weekly and monthly timeframes. The weekly MACD line continues to trade below its signal line, indicating sustained selling pressure. Similarly, the monthly MACD confirms this downtrend, suggesting that the stock’s medium-term momentum is weakening. This bearish MACD alignment often precedes further price declines, especially when corroborated by other technical signals.

Meanwhile, the Know Sure Thing (KST) oscillator also reflects bearish momentum on weekly and monthly charts, reinforcing the negative outlook. The KST’s downward trajectory signals that the stock’s price momentum is decelerating, which may deter short-term buyers.

RSI Presents Mixed Signals

The Relative Strength Index (RSI) offers a nuanced view. On the weekly chart, the RSI is neutral with no clear buy or sell signal, hovering around the mid-50s range. However, the monthly RSI is bullish, suggesting that longer-term oversold conditions may be easing. This divergence between weekly and monthly RSI readings indicates that while short-term momentum remains weak, there could be a potential for a stabilisation or reversal if buying interest returns.

Moving Averages and Bollinger Bands Indicate Downtrend

Daily moving averages have turned bearish, with the stock price trading below its 50-day and 200-day moving averages. This alignment is a classic technical warning sign, often interpreted as a signal that the stock is in a downtrend. The bearish crossover of these averages further confirms the negative price momentum.

Bollinger Bands on both weekly and monthly charts are also signalling bearish conditions. The stock price has been hugging the lower band, indicating persistent selling pressure and increased volatility. Such positioning often suggests that the stock is either oversold or in the midst of a strong downtrend, requiring cautious monitoring for any potential rebounds.

On-Balance Volume and Dow Theory Trends

On-Balance Volume (OBV) indicators on both weekly and monthly charts show no clear trend, suggesting that volume flows have not decisively supported either buying or selling pressure recently. This lack of volume confirmation adds to the uncertainty surrounding the stock’s immediate direction.

Similarly, Dow Theory assessments on weekly and monthly timeframes indicate no definitive trend, reflecting a market indecision phase. This absence of a clear Dow Theory trend implies that the stock may be consolidating or awaiting a catalyst to resume directional movement.

Mojo Score and Grade Downgrade

MarketsMOJO’s proprietary scoring system has downgraded Ratnamani Metals & Tubes Ltd from a Hold to a Sell rating as of 10 Feb 2025. The current Mojo Score stands at 33.0, reflecting weak technical and fundamental parameters. The Market Cap Grade is a low 3, indicating limited market capitalisation strength relative to peers. This downgrade aligns with the technical deterioration observed and signals caution for investors considering fresh exposure.

Long-Term Performance Context

Despite recent setbacks, Ratnamani Metals has delivered impressive long-term returns. Over the past 10 years, the stock has surged by 685.72%, significantly outperforming the Sensex’s 259.08% gain. Over five years, the stock’s return of 93.96% also surpasses the Sensex’s 59.83%. However, the recent underperformance over one year and year-to-date periods highlights the challenges the company currently faces amid sectoral cyclicality and broader economic pressures.

Investor Takeaway and Outlook

Ratnamani Metals & Tubes Ltd currently faces a challenging technical landscape. The convergence of bearish MACD, KST, moving averages, and Bollinger Bands on multiple timeframes points to sustained downward momentum. While the monthly RSI offers a glimmer of bullishness, it is insufficient to offset the broader negative signals at present.

Investors should weigh the stock’s recent underperformance against its strong long-term track record and sector fundamentals. The iron and steel products industry remains cyclical and sensitive to global commodity prices, infrastructure demand, and raw material costs. Given the current technical downgrade and Mojo Sell rating, cautious investors may prefer to monitor for a confirmed trend reversal or consider alternative stocks with stronger momentum profiles.

In summary, Ratnamani Metals & Tubes Ltd’s technical indicators suggest that the stock is in a bearish phase with limited near-term upside. Prudent portfolio management would involve close monitoring of key support levels near ₹1,900 and watching for any improvement in volume and momentum indicators before considering new positions.

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