The Death Cross is widely regarded by market analysts and traders as an indicator of potential trend deterioration. For Relaxo Footwears, this event occurred on 18 Nov 2025, following a period of sustained price declines. The stock’s daily moving averages now reflect a bearish alignment, which may influence investor sentiment and trading behaviour in the near term.
Relaxo Footwears, operating within the footwear industry and sector, currently holds a market capitalisation of approximately ₹10,672 crores, categorised as a small cap. The company’s price-to-earnings (P/E) ratio stands at 60.00, compared to the industry average P/E of 65.67, indicating valuation metrics that are somewhat aligned with sector peers but within a high valuation range.
Examining the stock’s recent performance reveals a challenging environment. Over the past year, Relaxo Footwears has recorded a decline of 36.71%, contrasting sharply with the Sensex’s positive return of 9.48% during the same period. This underperformance extends across multiple time frames: a 1-day drop of 1.78% versus the Sensex’s 0.33% decline, a 1-week fall of 2.64% against a 0.96% gain in the benchmark, and a 1-month decrease of 4.16% while the Sensex rose by 0.86%.
Only 1% make it here. This Large Cap from the Gems, Jewellery And Watches sector passed our rigorous filters with flying colors. Be among the first few to spot this gem!
- Highest rated stock selection
- Multi-parameter screening cleared
- Large Cap quality pick
Longer-term performance metrics further illustrate the stock’s relative weakness. Over three years, Relaxo Footwears has declined by 52.78%, while the Sensex has appreciated by 37.31%. The five-year comparison shows a 43.38% decrease for the stock against a 91.65% gain in the benchmark. Even over a decade, the stock’s 75.04% gain trails the Sensex’s 232.28% rise, highlighting persistent challenges in maintaining growth momentum.
Technical indicators provide additional context to the Death Cross event. The Moving Average Convergence Divergence (MACD) on a weekly basis signals bearish momentum, though the monthly MACD suggests a mildly bullish undertone. The Relative Strength Index (RSI) on a weekly scale does not currently indicate a clear signal, whereas the monthly RSI leans towards bullishness. Bollinger Bands on both weekly and monthly charts reflect bearish conditions, reinforcing the notion of downward pressure on the stock price.
Other technical tools such as the Know Sure Thing (KST) indicator show bearish trends on both weekly and monthly time frames. Dow Theory analysis reveals no definitive trend on the weekly chart but a mildly bearish stance monthly. On-Balance Volume (OBV) data aligns with these observations, showing no clear trend weekly and a mildly bearish pattern monthly. Collectively, these indicators suggest a complex technical landscape with a predominance of bearish signals, consistent with the implications of the Death Cross.
Is Relaxo Footwears your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- Better alternatives suggested
- Cross-sector comparison
- Portfolio optimization tool
On 10 Nov 2025, an adjustment in the evaluation of Relaxo Footwears was noted, with the Mojo Grade shifting from Strong Sell to Sell, reflecting a revision in its score. This change occurred shortly before the Death Cross trigger date, underscoring the evolving assessment of the stock’s outlook amid technical and fundamental factors.
Investors observing the Death Cross event in Relaxo Footwears should consider the broader market context and the stock’s historical performance. The persistent underperformance relative to the Sensex and the footwear sector, combined with the technical indicators, suggests caution. While the Death Cross is not an infallible predictor, it often precedes periods of sustained weakness or consolidation in the stock price.
In summary, Relaxo Footwears’ recent Death Cross formation signals a potential bearish trend and highlights a deterioration in the stock’s technical health. The combination of moving average crossovers, negative momentum indicators, and relative underperformance against benchmarks points to challenges ahead. Market participants may wish to monitor further developments closely and consider these factors when evaluating the stock’s position within their portfolios.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
