Redtape Ltd Faces Intensified Bearish Momentum Amid Technical Downturn

Technical Momentum Shifts to Bearish Territory

Redtape’s technical trend has shifted from mildly bearish to outright bearish, reflecting growing selling pressure. The daily moving averages confirm this negative momentum, with the stock price currently trading below key averages, signalling a lack of short-term buying interest. The current price stands at ₹119.20, down from the previous close of ₹126.35, marking a sharp intraday decline of 5.66%.

The 52-week price range further emphasises the stock’s vulnerability, with a high of ₹199.85 and a low of ₹106.45. The recent price action near the lower end of this range highlights the stock’s struggle to regain upward momentum.

MACD and RSI Paint a Cautious Picture

The Moving Average Convergence Divergence (MACD) indicator on the weekly chart remains bearish, underscoring persistent downward momentum. Although the monthly MACD reading is not explicitly bearish, it does not provide any bullish confirmation either, indicating a lack of strong upward momentum over the longer term.

Meanwhile, the Relative Strength Index (RSI) on both weekly and monthly timeframes shows no clear signal, hovering in a neutral zone. This suggests that while the stock is not yet oversold, it lacks the buying strength needed to reverse the downtrend decisively.

Bollinger Bands and KST Confirm Downtrend

Bollinger Bands on the weekly chart indicate a mildly bearish stance, with the price moving closer to the lower band, signalling increased volatility and potential continuation of the downward trend. The monthly Bollinger Bands reinforce this bearish outlook, suggesting sustained pressure on the stock.

The Know Sure Thing (KST) indicator also aligns with this view, showing bearish momentum on the weekly timeframe. The monthly KST data is unavailable, but the weekly reading alone supports the case for caution among investors.

Additional Technical Signals and Volume Analysis

Other technical indicators provide a mixed but cautious outlook. The Dow Theory readings are mildly bearish on both weekly and monthly charts, indicating that the broader trend is still under pressure. Meanwhile, the On-Balance Volume (OBV) indicator shows no clear trend on either timeframe, suggesting that volume is not confirming any strong directional move.

This lack of volume confirmation often signals uncertainty among market participants, which can prolong consolidation or exacerbate declines if selling intensifies.

Comparative Performance Against Sensex

Redtape’s recent returns have lagged behind the benchmark Sensex, reflecting sector-specific and company-specific challenges. Over the past week, the stock posted a positive return of 2.54%, outperforming the Sensex’s modest 0.31% gain. However, this short-term strength is overshadowed by longer-term underperformance.

Over one month, Redtape declined by 2.57%, slightly worse than the Sensex’s 2.51% fall. Year-to-date, the stock is down 3.72%, compared to the Sensex’s 3.11% loss. Most notably, over the past year, Redtape has suffered a steep 30.06% decline, while the Sensex gained 7.88%, highlighting the stock’s significant underperformance relative to the broader market.

Mojo Score and Ratings Reflect Weak Outlook

MarketsMOJO assigns Redtape a Mojo Score of 30.0, categorising it firmly as a Sell. This represents a downgrade from a previous Strong Sell rating on 24 Sep 2025, signalling a slight improvement but still a negative outlook. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation with limited growth prospects under current conditions.

The downgrade in technical trend from mildly bearish to bearish aligns with the Mojo Grade change, reinforcing the cautious stance investors should adopt.

Sector and Industry Context

Operating within the footwear industry, Redtape faces sectoral headwinds including fluctuating raw material costs and shifting consumer preferences. The footwear sector itself has shown mixed performance, with some peers managing to sustain growth while others struggle with margin pressures.

Given Redtape’s technical deterioration and relative underperformance, investors may need to reassess their exposure to the stock in light of sector dynamics and broader market volatility.

Outlook and Investor Considerations

In summary, Redtape Ltd’s technical indicators collectively point to a bearish momentum shift, with key signals such as the MACD, moving averages, and Bollinger Bands confirming downside risks. The absence of strong volume support and neutral RSI readings suggest limited immediate recovery potential.

Investors should weigh these technical signals alongside fundamental factors and market conditions before making decisions. The downgrade in Mojo Grade to Sell and the stock’s underperformance relative to the Sensex over the past year further underscore the need for caution.

For those currently holding Redtape shares, monitoring technical developments closely and considering alternative investments within the footwear sector or broader market may be prudent.

Summary of Key Technical Metrics:

• Current Price: ₹119.20 (Previous Close: ₹126.35)


• 52-Week Range: ₹106.45 - ₹199.85


• MACD: Weekly Bearish, Monthly Neutral


• RSI: Weekly & Monthly Neutral


• Bollinger Bands: Weekly Mildly Bearish, Monthly Bearish


• Moving Averages: Daily Bearish


• KST: Weekly Bearish


• Dow Theory: Weekly & Monthly Mildly Bearish


• OBV: No Clear Trend


• Mojo Score: 30.0 (Sell), downgraded from Strong Sell on 24 Sep 2025

Given these factors, Redtape Ltd remains under technical pressure, and investors should approach the stock with caution amid ongoing market uncertainties.

Unlock special upgrade rates for a limited period. Start Saving Now →