Relaxo Footwears Ltd Faces Intensified Bearish Momentum Amid Technical Downgrade

Technical Trend Shift and Momentum Analysis

Recent technical assessments reveal that Relaxo Footwears has transitioned from a mildly bearish to a fully bearish trend. The daily moving averages have turned decisively bearish, indicating sustained downward pressure on the stock price. The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture: while the weekly MACD remains bearish, the monthly MACD shows a mildly bullish stance, suggesting some longer-term support but insufficient to counteract near-term weakness.

The Relative Strength Index (RSI) on both weekly and monthly charts currently offers no clear signal, hovering in neutral territory. This lack of momentum confirmation from RSI implies that the stock is neither oversold nor overbought, but the absence of bullish RSI divergence adds to the cautious outlook.

Bollinger Bands reinforce the bearish narrative, with both weekly and monthly bands indicating downward pressure and increased volatility. The stock price is trading near the lower band, which often signals a continuation of the bearish trend rather than an imminent reversal.

Volume and Trend Confirmation Indicators

The On-Balance Volume (OBV) indicator is mildly bearish on both weekly and monthly scales, suggesting that selling volume is slightly outweighing buying interest. This volume trend supports the price decline and indicates that investor conviction behind the downtrend is growing.

The Know Sure Thing (KST) oscillator aligns with the MACD signals, showing bearish momentum on the weekly chart but a mildly bullish tone monthly. This divergence between short- and long-term momentum indicators highlights the complexity of the stock’s technical profile, where short-term weakness may persist despite some underlying longer-term strength.

Dow Theory analysis finds no definitive trend on weekly or monthly timeframes, reflecting a lack of clear directional confirmation from broader market patterns. This absence of trend confirmation adds to the uncertainty surrounding the stock’s near-term trajectory.

Price Performance Relative to Benchmarks

Relaxo Footwears’ recent price performance has lagged behind the Sensex benchmark across multiple periods. Over the past week, the stock declined by 0.12% while the Sensex gained 0.91%. The one-month and year-to-date returns are particularly concerning, with Relaxo down 8.90% and 8.45% respectively, compared to Sensex gains of 2.49% and 2.24% over the same periods.

Longer-term returns paint a more challenging picture for investors. Over one year, Relaxo’s stock has fallen 30.82%, in stark contrast to the Sensex’s 6.44% gain. The three- and five-year returns show even greater underperformance, with Relaxo down 54.02% and 58.23% respectively, while the Sensex surged 36.94% and 64.22% over those intervals. Even over a decade, Relaxo’s 68.97% gain pales against the Sensex’s 238.44% appreciation.

Mojo Score and Analyst Ratings

MarketsMOJO’s latest assessment downgraded Relaxo Footwears from a 'Sell' to a 'Strong Sell' rating on 10 Nov 2025, reflecting the deteriorating technical and fundamental outlook. The company’s Mojo Score stands at a low 21.0, signalling weak momentum and poor quality metrics. The Market Cap Grade is rated 3, indicating a mid-tier market capitalisation but insufficient to offset the negative technical signals.

This downgrade underscores the growing consensus among analysts that Relaxo’s stock is facing significant headwinds, both from a price momentum perspective and broader market positioning.

Key Price Levels and Volatility

Relaxo’s current price of ₹370.05 is closer to its 52-week low of ₹355.00 than its high of ₹574.55, highlighting the substantial decline over the past year. Today’s trading range was relatively narrow, with a low of ₹370.00 and a high of ₹377.45, suggesting limited intraday volatility but persistent selling pressure.

The proximity to the lower Bollinger Band and bearish moving averages suggests that the stock may continue to face downward pressure unless there is a significant catalyst to reverse sentiment.

Sector and Industry Context

Within the footwear sector, Relaxo’s technical deterioration contrasts with some peers that have shown more resilience or positive momentum. The sector itself has experienced mixed performance, with consumer discretionary stocks facing pressure amid inflationary concerns and shifting consumer spending patterns.

Investors should weigh Relaxo’s technical weakness against sector trends and broader economic indicators before considering exposure to the stock.

Investor Takeaway and Outlook

Relaxo Footwears Ltd’s technical indicators collectively signal a bearish momentum shift that investors should not overlook. The downgrade to a 'Strong Sell' rating by MarketsMOJO, combined with weak price performance relative to the Sensex and deteriorating volume trends, suggests caution is warranted.

While some monthly indicators hint at mild bullishness, the dominant short-term signals remain negative, implying that any recovery may be limited or short-lived. Investors should monitor key support levels near ₹355 and watch for any reversal in moving averages or MACD to reassess the stock’s outlook.

Given the current technical landscape and sector challenges, Relaxo may not be the optimal choice for momentum-driven portfolios at this juncture. Instead, investors might consider exploring alternatives with stronger technical profiles and more favourable fundamental trends.

Summary

In summary, Relaxo Footwears Ltd is navigating a difficult phase marked by bearish technical momentum and underwhelming price returns. The stock’s current technical configuration, including bearish moving averages, negative MACD on weekly charts, and weak volume indicators, supports a cautious stance. The downgrade to a 'Strong Sell' rating and the company’s lagging performance against the Sensex further reinforce the need for prudence among investors.

Market participants should remain vigilant for any shifts in momentum indicators or fundamental developments that could alter the stock’s trajectory. Until then, Relaxo’s technical signals suggest that downside risks remain elevated.

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