Relaxo Footwears Ltd Faces Bearish Momentum Amid Mixed Technical Signals

Price Movement and Market Context

On 29 Jan 2026, Relaxo Footwears Ltd closed at ₹379.95, marking a 3.68% increase from the previous close of ₹366.45. The intraday range saw a low of ₹371.80 and a high of ₹382.40, indicating some volatility but an overall positive session. However, this price remains significantly below its 52-week high of ₹598.55, underscoring the stock’s ongoing struggle to regain earlier momentum. The 52-week low stands at ₹355.00, placing the current price closer to the lower end of its annual range.

Comparatively, the stock has outperformed the Sensex over the past week with a 5.40% return versus the benchmark’s 0.53%. Yet, over longer periods, Relaxo’s performance has lagged considerably. The one-month return is -5.78% against Sensex’s -3.17%, and year-to-date the stock is down 6.00%, while the Sensex has declined 3.37%. Over one year, Relaxo has plummeted 28.98%, contrasting sharply with the Sensex’s 8.49% gain. The three- and five-year returns are deeply negative at -53.14% and -54.61% respectively, while the Sensex has delivered robust gains of 38.79% and 75.67% over the same periods. Even on a ten-year horizon, Relaxo’s 62.15% return pales in comparison to the Sensex’s 236.52%.

Technical Trend Shift: From Mildly Bearish to Bearish

The technical trend for Relaxo Footwears has recently deteriorated from mildly bearish to outright bearish. This shift is corroborated by several key indicators across different timeframes, signalling increased selling pressure and a cautious outlook among traders and investors.

MACD Analysis

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On the weekly chart, the MACD remains bearish, suggesting that downward momentum is still dominant in the near term. Conversely, the monthly MACD is mildly bullish, indicating some underlying strength or potential for a longer-term recovery. This divergence between weekly and monthly MACD readings highlights the stock’s current technical uncertainty.

RSI and Momentum Indicators

The Relative Strength Index (RSI) on both weekly and monthly charts shows no clear signal, hovering in neutral territory. This lack of directional RSI suggests that the stock is neither overbought nor oversold, leaving room for either a rebound or further decline depending on market catalysts.

Bollinger Bands and Moving Averages

Bollinger Bands reveal a mildly bearish stance on the weekly timeframe and a more pronounced bearish signal on the monthly chart. This indicates that price volatility is skewed towards the downside, with the stock trading near or below the lower band on a monthly basis. Daily moving averages reinforce this bearish outlook, as the stock price remains below key averages, signalling persistent downward pressure.

KST and Dow Theory Signals

The Know Sure Thing (KST) indicator aligns with the MACD’s mixed signals: bearish on the weekly chart but mildly bullish monthly. Dow Theory analysis shows no clear trend on the weekly timeframe, while the monthly perspective is mildly bearish. These mixed signals further complicate the technical narrative, suggesting that while short-term momentum is weak, there may be some longer-term support.

Volume and On-Balance Volume (OBV)

Volume-based indicators such as OBV show no definitive trend on the weekly chart and a mildly bearish stance monthly. This suggests that volume is not strongly confirming price movements, which may indicate a lack of conviction among market participants.

Mojo Score and Ratings Update

MarketsMOJO assigns Relaxo Footwears Ltd a Mojo Score of 30.0, reflecting a cautious stance on the stock. The Mojo Grade has been downgraded from Strong Sell to Sell as of 10 Nov 2025, signalling a slight improvement but still indicating a negative outlook. The Market Cap Grade stands at 3, suggesting a mid-tier valuation relative to peers. These ratings underscore the technical and fundamental challenges facing the company.

Sector and Industry Context

Operating within the Footwear industry and sector, Relaxo faces competitive pressures and evolving consumer trends. The sector’s performance has been mixed, with some peers showing resilience while others struggle with margin pressures and input cost inflation. Relaxo’s technical deterioration may reflect these broader sectoral headwinds, compounded by company-specific factors.

Investor Implications and Outlook

For investors, the current technical signals suggest caution. The bearish trend across multiple indicators, combined with underperformance relative to the Sensex over medium and long-term horizons, points to limited near-term upside. However, the mildly bullish monthly MACD and KST hint at potential stabilisation if positive catalysts emerge.

Traders may consider the daily moving averages and Bollinger Bands as key levels to watch for potential breakdowns or rebounds. The absence of strong volume confirmation suggests that any price moves should be carefully analysed for sustainability.

Conclusion: Navigating a Challenging Technical Landscape

Relaxo Footwears Ltd’s recent technical parameter changes reveal a stock caught between bearish momentum and faint signs of recovery. The downgrade in technical trend from mildly bearish to bearish, coupled with mixed signals from MACD, KST, and Bollinger Bands, suggests that investors should remain vigilant. While short-term price gains have been recorded, the broader technical and fundamental backdrop remains challenging.

Given the stock’s underperformance relative to the Sensex over multiple timeframes and the current Sell rating by MarketsMOJO, investors may want to reassess their exposure. Monitoring key technical levels and volume trends will be crucial in determining whether Relaxo can regain momentum or if further declines are likely.

In the context of the footwear sector’s evolving dynamics, Relaxo’s path forward will depend on both market sentiment and company-specific developments. For now, the technical indicators counsel prudence and careful analysis before committing fresh capital.

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