Price Movement and Market Context
On 1 February 2026, Relaxo Footwears Ltd closed at ₹393.15, up from the previous close of ₹370.50, marking a robust intraday gain. The stock traded within a range of ₹364.30 to ₹404.45, showing heightened volatility. Despite this short-term strength, the stock remains significantly below its 52-week high of ₹598.55 and only marginally above its 52-week low of ₹355.00, underscoring persistent downward pressure over the past year.
Comparatively, Relaxo’s returns have lagged the broader Sensex benchmark across multiple timeframes. While the stock outperformed the Sensex over the past week with a 10.06% gain versus the index’s 0.90%, it has underperformed over the one-month (-1.85% vs -2.84%), year-to-date (-2.73% vs -3.46%), one-year (-28.26% vs 7.18%), three-year (-51.26% vs 38.27%), and five-year periods (-52.26% vs 77.74%). Even over a decade, Relaxo’s 68.28% return pales in comparison to the Sensex’s 230.79% gain, highlighting structural challenges within the company and sector.
Technical Trend Shift: From Mildly Bearish to Bearish
The technical trend for Relaxo Footwears has deteriorated from mildly bearish to outright bearish, signalling increased selling pressure. This shift is corroborated by several key indicators. The daily moving averages are firmly bearish, with the stock price trading below its short- and medium-term averages, suggesting downward momentum is prevailing in the near term.
The weekly Moving Average Convergence Divergence (MACD) indicator remains bearish, indicating that the stock’s momentum is still negative on a weekly basis. However, the monthly MACD shows a mildly bullish stance, hinting at some underlying strength that could potentially stabilise the stock if confirmed by other indicators.
RSI and Bollinger Bands: Mixed Signals
The Relative Strength Index (RSI) on both weekly and monthly charts currently provides no clear signal, hovering in neutral territory. This suggests that the stock is neither overbought nor oversold, leaving room for either a reversal or continuation of the current trend depending on forthcoming market developments.
Bollinger Bands present a more cautious picture. On the weekly timeframe, the bands are mildly bearish, reflecting increased volatility and a tendency for the price to test lower support levels. The monthly Bollinger Bands are outright bearish, reinforcing the longer-term downtrend and the risk of further downside.
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Additional Technical Indicators: KST, Dow Theory, and OBV
The Know Sure Thing (KST) oscillator aligns with the MACD’s mixed signals, showing bearish momentum on the weekly chart but a mildly bullish stance monthly. This divergence suggests that while short-term momentum remains weak, there may be some longer-term accumulation or stabilisation underway.
Dow Theory assessments on both weekly and monthly timeframes are mildly bearish, indicating that the broader trend remains negative but not decisively so. This aligns with the overall cautious sentiment among technical analysts.
On-Balance Volume (OBV) analysis reveals no clear trend on the weekly chart, while the monthly OBV is mildly bearish. This suggests that volume flows have not strongly supported recent price gains, which could limit the sustainability of any upward moves.
Mojo Score and Market Capitalisation Grade
Relaxo Footwears currently holds a Mojo Score of 21.0, categorised as a Strong Sell, an upgrade from its previous Sell rating as of 10 November 2025. This downgrade reflects deteriorating fundamentals and technicals, signalling caution for investors. The company’s market capitalisation grade stands at 3, indicating a small-cap status with associated liquidity and volatility considerations.
Implications for Investors
The mixed technical signals present a challenging environment for investors. While the recent intraday price surge and mildly bullish monthly indicators offer some hope of a turnaround, the dominant bearish trends across daily and weekly charts, combined with weak volume support, suggest that the stock remains vulnerable to further declines.
Investors should weigh the short-term volatility against the longer-term downtrend and consider the company’s relative underperformance versus the Sensex. The footwear sector’s competitive pressures and Relaxo’s inability to sustain gains over multiple years warrant a cautious approach.
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Conclusion: Navigating a Complex Technical Landscape
Relaxo Footwears Ltd’s technical profile is characterised by a clear bearish momentum in the short to medium term, tempered by some mildly bullish monthly signals that hint at potential stabilisation. The stock’s recent price action, including a 6.11% day gain, provides a temporary reprieve but does not yet signal a definitive trend reversal.
Given the company’s underperformance relative to the Sensex and the footwear sector’s competitive dynamics, investors should remain vigilant. The Strong Sell Mojo Grade and bearish technical indicators advise prudence, especially for those seeking sustainable long-term growth.
Monitoring key technical levels, including the 52-week low of ₹355.00 and the resistance near ₹404.45, alongside volume trends and moving averages, will be critical in assessing future momentum shifts. Until clearer bullish confirmation emerges, a cautious stance remains warranted.
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