Relaxo Footwears Ltd Faces Intensified Bearish Momentum Amid Technical Downgrade

Technical Trend Shift and Moving Averages

Recent analysis reveals that Relaxo Footwears’ technical trend has shifted from mildly bearish to outright bearish. The daily moving averages confirm this negative momentum, with the stock price trading below key averages, signalling sustained selling pressure. This downward trajectory is further underscored by the stock’s current price of ₹365.25, which is closer to its 52-week low of ₹355.00 than its 52-week high of ₹536.80, highlighting the stock’s struggle to regain upward momentum.

MACD and Momentum Oscillators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD remains bearish, indicating that the short-term momentum is weak and sellers dominate. However, the monthly MACD is mildly bullish, suggesting some longer-term underlying strength that has yet to translate into price gains. This divergence between weekly and monthly MACD readings points to a potential consolidation phase, but the prevailing short-term weakness is a cause for concern.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This lack of directional RSI momentum implies that the stock is neither oversold nor overbought, but the absence of a bullish RSI signal fails to provide support for a near-term recovery. Meanwhile, Bollinger Bands on both weekly and monthly timeframes are bearish, with the price trending near the lower band. This suggests increased volatility and a downward bias, reinforcing the negative technical outlook.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator aligns with the MACD’s mixed signals, showing bearish momentum on the weekly chart but a mildly bullish stance monthly. Dow Theory assessments indicate a mildly bullish trend weekly but no definitive trend monthly, reflecting uncertainty in the stock’s directional strength. On the volume front, the On-Balance Volume (OBV) indicator shows no clear trend weekly and a mildly bearish signal monthly, implying that volume does not support a strong price rally and that selling pressure may be increasing.

Comparative Performance Against Sensex

Relaxo Footwears’ price performance has lagged significantly behind the broader market benchmark, the Sensex, across multiple time horizons. Over the past week, the stock has declined by 2.25%, while the Sensex gained 0.43%. The one-month return for Relaxo is down 7.29%, compared to a marginal 0.24% decline in the Sensex. Year-to-date, the stock has fallen 9.64%, considerably underperforming the Sensex’s 1.81% loss.

Longer-term returns paint an even more challenging picture. Over one year, Relaxo’s stock has dropped 27.77%, while the Sensex has risen 9.85%. Over three and five years, the stock has declined by 53.65% and 58.18% respectively, in stark contrast to the Sensex’s robust gains of 37.89% and 62.34%. Even over a decade, while Relaxo has posted an 82.47% gain, it pales in comparison to the Sensex’s 264.02% increase, underscoring the stock’s relative underperformance within the Indian equity market.

Mojo Score and Rating Update

MarketsMOJO’s latest assessment has downgraded Relaxo Footwears Ltd from a ‘Sell’ to a ‘Strong Sell’ rating, 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 downgrade was effected on 10 Nov 2025, underscoring the growing concerns among analysts and investors alike. The Market Cap Grade remains at 3, indicating a relatively modest market capitalisation within the footwear sector.

Price Volatility and Intraday Range

On 13 Feb 2026, the stock traded within a narrow intraday range of ₹365.05 to ₹370.25, closing below the previous day’s close of ₹370.50. This 1.42% decline on the day adds to the bearish sentiment, with the stock failing to sustain any upward momentum. The proximity to the 52-week low of ₹355.00 further emphasises the vulnerability of the share price in the current market environment.

Sectoral Context and Industry Positioning

Within the footwear industry, Relaxo Footwears faces stiff competition and sectoral headwinds. The broader footwear sector has seen mixed performance, with some peers demonstrating resilience through innovation and market expansion. Relaxo’s technical deterioration contrasts with these trends, suggesting company-specific challenges that may include margin pressures, supply chain disruptions, or weakening consumer demand.

Investor Takeaway and Outlook

Investors should approach Relaxo Footwears Ltd with caution given the prevailing bearish technical signals and the company’s underperformance relative to the Sensex benchmark. The combination of a strong ‘Strong Sell’ rating, weak momentum indicators, and a declining price trend suggests limited near-term upside potential. While some monthly indicators hint at mild bullishness, these have yet to materialise into sustained price gains.

For those holding positions, it may be prudent to monitor key support levels near ₹355.00 and watch for any reversal signals in the MACD or RSI before considering accumulation. Prospective investors might find better opportunities by evaluating other footwear stocks or sectors with stronger technical and fundamental profiles.

Overall, Relaxo Footwears Ltd’s current technical landscape reflects a challenging environment, with momentum firmly tilted towards the bears and no immediate catalysts visible to reverse the trend.

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