Relaxo Footwears Ltd Faces Bearish Momentum Amid Mixed Technical Signals

Technical Trend Shift and Current Price Action

Relaxo Footwears, currently trading at ₹399.25, has seen its technical trend deteriorate from mildly bearish to outright bearish. The stock’s price has hovered close to its recent lows, with a 52-week range between ₹375.35 and ₹625.80, underscoring significant volatility over the past year. Today’s trading session saw a modest decline of 0.09%, with intraday prices fluctuating between ₹393.05 and ₹401.95, indicating a lack of strong upward momentum.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) presents a nuanced picture. On a weekly basis, the MACD remains bearish, signalling downward momentum in the near term. However, the monthly MACD is mildly bullish, suggesting that longer-term momentum may be stabilising or poised for a potential recovery. This divergence between weekly and monthly MACD readings highlights the stock’s current technical uncertainty.

RSI and Relative Strength

The Relative Strength Index (RSI) on the weekly chart is bullish, indicating that the stock may be oversold in the short term and could be due for a rebound. Conversely, the monthly RSI shows no clear signal, reflecting a neutral stance over the longer horizon. This mixed RSI reading suggests that while short-term buyers might find some opportunity, the broader trend remains unresolved.

Moving Averages and Bollinger Bands

Daily moving averages are firmly bearish, with the stock trading below its key short-term and medium-term averages. This reinforces the downward pressure on price. Additionally, Bollinger Bands on both weekly and monthly charts are bearish, indicating that price volatility is skewed towards the downside and that the stock is likely to remain under pressure unless a significant catalyst emerges.

Other Technical Indicators

The Know Sure Thing (KST) indicator aligns with the MACD, showing a bearish trend on the weekly scale but a mildly bullish tone monthly. Dow Theory assessments are mildly bearish on both weekly and monthly timeframes, confirming the cautious sentiment among technical analysts. On-Balance Volume (OBV) readings are mildly bullish weekly but mildly bearish monthly, suggesting that while there is some buying interest in the short term, the longer-term volume trend does not support a sustained rally.

Comparative Performance Versus Sensex

Relaxo’s price performance relative to the Sensex further contextualises its technical challenges. Over the past week, Relaxo declined by 1.15% compared to the Sensex’s sharper 2.55% fall, showing relative resilience. However, over the past month, Relaxo’s 5.09% drop outpaced the Sensex’s 1.29% decline, signalling underperformance. Year-to-date, the stock is down 1.22%, slightly better than the Sensex’s 1.93% fall.

Longer-term returns paint a more concerning picture. Over one year, Relaxo has plummeted 35.08%, while the Sensex gained 7.67%. Over three and five years, Relaxo’s losses exceed 55%, contrasting sharply with the Sensex’s robust gains of 37.58% and 71.32%, respectively. Even over a decade, Relaxo’s 66.16% return pales against the Sensex’s 235.19%, underscoring persistent underperformance.

MarketsMOJO Rating and Quality Grades

MarketsMOJO has downgraded Relaxo Footwears Ltd’s Mojo Grade from a 'Strong Sell' to a 'Sell' as of 10 Nov 2025, reflecting a slight improvement but still signalling caution. The Mojo Score stands at 30.0, indicating weak overall fundamentals and technical outlook. The Market Cap Grade is a low 3, suggesting limited market capitalisation strength relative to peers.

Sector and Industry Context

Operating within the footwear sector, Relaxo faces competitive pressures and shifting consumer preferences. The sector itself has seen mixed technical trends, with some peers showing stronger momentum and better fundamental support. Relaxo’s technical deterioration contrasts with certain industry players that have maintained or improved their technical profiles, highlighting the need for investors to carefully assess sector dynamics before committing capital.

Investment Implications and Outlook

The confluence of bearish daily moving averages, weekly MACD and Bollinger Bands, alongside mixed monthly signals, suggests that Relaxo Footwears is currently in a consolidation or downtrend phase. Short-term bullish RSI and weekly OBV readings offer limited relief but are insufficient to reverse the broader negative momentum. Investors should be cautious, as the stock’s long-term underperformance relative to the Sensex and sector peers indicates structural challenges.

Given the technical and fundamental backdrop, the stock appears vulnerable to further downside unless it can break above key resistance levels and improve volume-based indicators. Monitoring weekly and monthly MACD and KST for sustained bullish crossovers will be critical for any trend reversal confirmation.

Summary

Relaxo Footwears Ltd’s technical parameters reveal a stock grappling with bearish momentum amid conflicting signals from various indicators. While short-term oscillators like RSI hint at potential rebounds, the dominant trend remains negative, supported by bearish moving averages and volume trends. The downgrade in MarketsMOJO’s rating to 'Sell' underscores the cautious stance investors should adopt.

Long-term underperformance relative to the Sensex and sector peers further complicates the investment thesis. Until the stock demonstrates clear technical improvement and fundamental stabilisation, it is likely to remain a challenging proposition for investors seeking growth or stability in the footwear sector.

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