Relaxo Footwears Ltd Faces Technical Headwinds Amid Weak Price Momentum

Technical Trend and Momentum Overview

Relaxo Footwears Ltd (Stock ID: 250971), a prominent player in the footwear sector, currently trades at ₹375.40, down 1.33% from the previous close of ₹380.45. The stock’s 52-week range spans from ₹355.00 to ₹579.95, indicating significant volatility over the past year. Recent technical assessments reveal a shift in the overall trend from bearish to mildly bearish, suggesting a tentative easing of selling pressure but no definitive reversal yet.

The daily moving averages remain bearish, signalling that short-term momentum is still weak. The stock’s price remains below key moving averages, which typically act as resistance levels. This persistent weakness in moving averages aligns with the broader technical narrative of subdued buying interest.

MACD and RSI Signals

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD remains bearish, indicating that the momentum is still tilted towards sellers. However, the monthly MACD has improved to a mildly bullish stance, hinting at a potential longer-term recovery if buying interest strengthens.

Relative Strength Index (RSI) readings for both weekly and monthly periods currently show no clear signal, hovering in neutral zones. This lack of momentum in RSI suggests that the stock is neither overbought nor oversold, which often precedes a period of consolidation or sideways movement.

Bollinger Bands and KST Analysis

Bollinger Bands on both weekly and monthly charts remain bearish, reflecting sustained volatility and downward pressure. The stock price frequently touches or breaches the lower band, signalling persistent selling pressure. Meanwhile, the Know Sure Thing (KST) indicator aligns with the MACD, showing bearish momentum on the weekly scale but a mildly bullish tone monthly, reinforcing the mixed technical outlook.

Volume and Dow Theory Insights

On-Balance Volume (OBV) analysis reveals a mildly bullish trend on the weekly chart, suggesting that volume flow may be supporting some accumulation despite price weakness. However, the monthly OBV shows no clear trend, indicating that volume dynamics have yet to confirm a sustained reversal.

Dow Theory assessments for both weekly and monthly periods indicate no definitive trend, underscoring the current uncertainty in market direction for Relaxo Footwears.

Comparative Performance and Market Context

Relaxo’s recent price momentum contrasts sharply with the broader market benchmark, the Sensex. Over the past week, Relaxo’s stock declined by 0.99%, while the Sensex gained 1.79%. This underperformance extends over longer periods: the stock has fallen 7.06% in the last month compared to a 2.27% decline in the Sensex, and year-to-date, Relaxo is down 7.13% against the Sensex’s 1.65% loss.

More strikingly, over the past year, Relaxo has plummeted 30.30%, whereas the Sensex has risen 6.66%. The divergence widens over three and five years, with Relaxo down 53.36% and 55.31% respectively, while the Sensex surged 37.76% and 65.60%. Even over a decade, Relaxo’s 65.07% gain pales in comparison to the Sensex’s 244.38% appreciation, highlighting the stock’s persistent underperformance relative to the broader market.

Mojo Score and Grade Update

MarketsMOJO’s latest evaluation assigns Relaxo Footwears a Mojo Score of 27.0, categorising it as a Strong Sell. This represents a downgrade from the previous Sell rating issued on 10 Nov 2025. The Market Cap Grade remains low at 3, reflecting limited market capitalisation strength. This downgrade underscores the deteriorating technical and fundamental outlook for the stock, signalling caution for investors.

Implications for Investors

The technical indicators collectively suggest that Relaxo Footwears is in a phase of tentative stabilisation but remains vulnerable to further downside. The mildly bullish monthly MACD and KST offer a glimmer of hope for a longer-term recovery, but the dominant bearish signals on weekly and daily charts caution against premature optimism.

Investors should note the stock’s failure to sustain levels above key moving averages and the persistent pressure indicated by Bollinger Bands. The neutral RSI readings imply a lack of strong directional momentum, which may result in continued sideways trading or further declines if selling intensifies.

Sector and Industry Considerations

Within the footwear sector, Relaxo’s struggles are notable given the sector’s generally stable demand fundamentals. The company’s technical weakness may reflect company-specific challenges or broader market rotation away from small and mid-cap footwear stocks. Investors may wish to compare Relaxo’s technical and fundamental metrics against peers to identify more resilient opportunities.

Conclusion: Cautious Approach Recommended

Relaxo Footwears Ltd’s recent technical parameter changes highlight a stock caught between bearish momentum and tentative signs of recovery. The downgrade to a Strong Sell rating by MarketsMOJO reflects the prevailing negative sentiment and technical challenges. While some monthly indicators hint at mild bullishness, the dominant weekly and daily signals remain bearish, suggesting that investors should exercise caution.

Given the stock’s underperformance relative to the Sensex and the footwear sector, alongside weak moving averages and bearish Bollinger Bands, a conservative stance is advisable. Investors seeking exposure to the footwear industry may benefit from exploring alternative stocks with stronger technical and fundamental profiles.

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