Relaxo Footwears Ltd Sees Mixed Technical Signals Amid Prolonged Underperformance

Technical Trend Overview

Relaxo Footwears Ltd’s technical trend has transitioned from a firmly bearish position to a mildly bearish one, signalling a tentative easing of selling pressure but no definitive reversal. The daily moving averages remain bearish, indicating that the short-term price action continues to favour the downside. The stock closed at ₹402.05 on 2 Jan 2026, down 0.53% from the previous close of ₹404.20, with intraday trading ranging between ₹400.35 and ₹407.35.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On the weekly chart, the MACD remains bearish, reflecting ongoing downward momentum over the medium term. However, the monthly MACD has improved to a mildly bullish stance, suggesting that longer-term momentum may be stabilising or beginning to recover. This divergence between weekly and monthly MACD readings highlights a potential inflection point, though confirmation is required before a sustained uptrend can be expected.

Relative Strength Index (RSI) Signals

The RSI readings for both weekly and monthly timeframes currently show no clear signal, hovering in neutral zones without indicating overbought or oversold conditions. This lack of directional RSI momentum suggests that the stock is consolidating, with neither buyers nor sellers dominating decisively. Investors should monitor RSI closely for any breakout above 70 or drop below 30, which would provide stronger directional cues.

Bollinger Bands and Price Volatility

Bollinger Bands on both weekly and monthly charts remain bearish, indicating that price volatility is skewed towards the downside. The stock price is trading near the lower band on the weekly timeframe, which often signals potential support but also reflects persistent selling pressure. This technical setup implies that while the stock may be approaching a short-term floor, the risk of further declines remains until a clear reversal pattern emerges.

Other Technical Indicators

The Know Sure Thing (KST) indicator aligns with the MACD, showing bearish momentum on the weekly chart but a mildly bullish tone monthly. Dow Theory analysis reveals a mildly bullish weekly trend but no clear monthly trend, reinforcing the notion of a tentative recovery that lacks conviction. On-Balance Volume (OBV) is mildly bullish weekly, suggesting some accumulation by investors, though monthly OBV remains neutral, indicating limited sustained buying interest.

Price Performance Relative to Sensex

Relaxo Footwears Ltd’s price performance has lagged significantly behind the broader market benchmark, the Sensex. Over the past week, the stock declined by 0.90%, compared to a 0.26% drop in the Sensex. The one-month return shows a sharper underperformance, with Relaxo down 1.71% versus the Sensex’s 0.53% decline. Year-to-date, the stock is down 0.53%, marginally worse than the Sensex’s 0.04% fall.

Longer-term returns paint a more challenging picture. Over one year, Relaxo has plummeted 35.83%, while the Sensex gained 8.51%. Over three and five years, the stock has declined 55.83% and 51.45% respectively, contrasting with Sensex gains of 40.02% and 77.96%. Even over a decade, Relaxo’s 58.66% return trails the Sensex’s robust 225.63% appreciation. These figures underscore the stock’s prolonged underperformance relative to the broader market.

Mojo Score and Market Capitalisation Insights

Relaxo Footwears currently holds a Mojo Score of 35.0, categorised as a 'Sell' rating, an upgrade from its previous 'Strong Sell' grade as of 10 Nov 2025. This improvement reflects a slight easing in negative sentiment but remains firmly bearish overall. The company’s market capitalisation grade stands at 3, indicating a small-cap status with associated liquidity and volatility considerations.

Moving Averages and Daily Price Action

Daily moving averages continue to signal bearish momentum, with the stock trading below key averages such as the 50-day and 200-day moving averages. This technical positioning suggests that short-term traders remain cautious, and any rallies may face resistance near these levels. The intraday high of ₹407.35 and low of ₹400.35 on 2 Jan 2026 reflect a narrow trading range, consistent with consolidation amid uncertainty.

Sector and Industry Context

Operating within the footwear sector, Relaxo faces competitive pressures and evolving consumer preferences that have impacted its financial and market performance. The sector itself has shown mixed technical signals, with some peers exhibiting stronger momentum. Investors should consider sectoral trends alongside company-specific technicals when evaluating Relaxo’s prospects.

Investor Takeaway and Outlook

While Relaxo Footwears Ltd has shown some technical improvement from a strong sell to a sell rating, the overall momentum remains cautious. The mixed signals from MACD and KST indicators, combined with bearish moving averages and Bollinger Bands, suggest that the stock is still in a consolidation phase with a downward bias. The absence of clear RSI signals further emphasises the need for investors to await stronger confirmation before committing to a bullish stance.

Given the stock’s significant underperformance relative to the Sensex over multiple time horizons, investors should weigh the risks carefully. The mildly bullish monthly momentum indicators hint at a potential base formation, but the weekly and daily charts caution against premature optimism. Those considering exposure to Relaxo should monitor technical developments closely, particularly any sustained break above key moving averages or a decisive MACD crossover on the weekly chart.

In summary, Relaxo Footwears Ltd remains a stock under pressure, with technical parameters signalling a tentative shift but no clear trend reversal. The current environment favours a cautious approach, with a focus on risk management and watching for confirmatory signals before increasing exposure.

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