Relaxo Footwears Ltd Technical Momentum Shifts Amid Bearish Sentiment

Technical Trend and Moving Averages: A Bearish Foundation

The overall technical trend for Relaxo Footwears has transitioned from a firmly bearish position to a mildly bearish one, signalling a tentative easing of downward pressure. However, the daily moving averages remain firmly bearish, underscoring that the stock’s short-term price action continues to lag behind its longer-term averages. The current price of ₹370.50 is below the previous close of ₹379.15, marking a day change of -2.28%, and remains significantly below the 52-week high of ₹598.55. This gap highlights the stock’s struggle to regain upward momentum amid broader market pressures.

MACD and Momentum Oscillators: Divergent Signals

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced view. On a weekly basis, the MACD remains bearish, indicating that the medium-term momentum is still negative. Conversely, the monthly MACD has shifted to mildly bullish, suggesting that longer-term momentum may be stabilising or beginning to improve. This divergence between weekly and monthly MACD readings points to a potential inflection point, where short-term weakness could be giving way to a more constructive outlook if confirmed by other indicators.

The Relative Strength Index (RSI) further complicates the picture. The weekly RSI is bullish, signalling that the stock is gaining strength in the short term and may be poised for a rebound. However, the monthly RSI shows no clear signal, implying that the longer-term momentum remains uncertain. This disparity between weekly and monthly RSI readings suggests that while short-term traders might find opportunities, longer-term investors should remain cautious.

Bollinger Bands and KST: Signs of Volatility and Mixed Trends

Bollinger Bands on the weekly chart are mildly bearish, indicating that price volatility remains skewed towards the downside in the near term. On the monthly chart, the bands are outright bearish, reinforcing the notion of sustained downward pressure over a longer horizon. The Know Sure Thing (KST) indicator echoes this mixed sentiment: bearish on the weekly timeframe but mildly bullish monthly. This combination suggests that while short-term price swings may be volatile and negative, there is a faint glimmer of longer-term recovery potential.

Volume and Dow Theory: Lack of Conviction

On-Balance Volume (OBV) readings show no clear trend on a weekly basis and a mildly bearish stance monthly, indicating that volume flows are not strongly supporting price movements. This lack of volume conviction often signals that investors are hesitant to commit fully, which can prolong sideways or downward price action.

Dow Theory assessments align with this cautious tone. Weekly readings show no definitive trend, while monthly indicators are mildly bearish. This suggests that the broader market forces influencing Relaxo Footwears remain weak, with no clear directional bias emerging to support a sustained rally.

Comparative Returns: Underperformance Against Sensex Benchmarks

Relaxo Footwears’ recent returns starkly contrast with the broader Sensex index. Over the past week, the stock outperformed marginally with a 1.47% gain versus the Sensex’s 0.31%. However, this short-term strength is overshadowed by longer-term underperformance. The stock has declined 8.04% over the past month compared to the Sensex’s 2.51% drop, and year-to-date returns show a similar pattern with Relaxo down 8.34% against the Sensex’s 3.11% loss.

More concerning is the one-year return, where Relaxo has plummeted 31.47% while the Sensex gained 7.88%. Over three and five years, the stock’s cumulative losses exceed 54%, whereas the Sensex posted robust gains of 39.16% and 78.38%, respectively. Even over a decade, Relaxo’s 58.59% gain pales in comparison to the Sensex’s 231.98% surge. These figures underscore the stock’s persistent challenges and the need for a clear technical turnaround to regain investor confidence.

Mojo Score and Grade: Downgrade Reflects Technical Weakness

MarketsMOJO’s proprietary scoring system assigns Relaxo Footwears a Mojo Score of 35.0, placing it firmly in the Sell category. This represents an upgrade from a previous Strong Sell grade issued on 10 Nov 2025, signalling a slight improvement in technical outlook but still reflecting significant caution. The Market Cap Grade of 3 further indicates limited market capitalisation strength relative to peers.

Investors should note that while some weekly indicators such as RSI and monthly MACD hint at potential stabilisation, the prevailing technical environment remains challenging. The daily moving averages’ bearish stance and the monthly Bollinger Bands’ negative signals suggest that any recovery attempts may face resistance.

Price Range and Volatility: Testing Support Levels

Relaxo’s current trading range is narrow but precarious. The stock’s intraday low of ₹367.45 is close to its 52-week low of ₹355.00, indicating that support levels are being tested. Meanwhile, the intraday high of ₹379.45 remains well below the 52-week peak, reflecting limited upside momentum. This price action, combined with mildly bearish Bollinger Bands, suggests that volatility remains elevated and downside risks persist.

Outlook and Investor Considerations

In summary, Relaxo Footwears Ltd is navigating a complex technical landscape. Short-term momentum indicators provide some cause for cautious optimism, but longer-term signals and volume trends remain subdued. The downgrade to a Sell rating by MarketsMOJO reflects these mixed signals and the stock’s ongoing underperformance relative to the broader market.

Investors should weigh these technical factors alongside fundamental considerations before making decisions. The stock’s persistent weakness over multiple timeframes and its failure to sustain rallies above key moving averages suggest that a clear technical turnaround is necessary to restore confidence. Until then, the mildly bearish trend and cautious volume patterns warrant a prudent approach.

Monitoring upcoming price action around support levels near ₹355 and any shifts in monthly momentum indicators will be critical for assessing potential recovery. Meanwhile, the divergence between weekly and monthly technical signals highlights the importance of a multi-timeframe analysis for this stock.

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