Relaxo Footwears Ltd Technical Momentum Shifts Amid Bearish Sentiment

Technical Trend Overview and Momentum Analysis

Relaxo Footwears Ltd, a prominent player in the footwear sector, currently trades at ₹371.35, slightly above its previous close of ₹369.30. The stock’s 52-week range spans from ₹355.00 to ₹545.00, 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 downward pressure but no definitive reversal yet.

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains bearish, signalling that the short-term momentum is still negative. However, the monthly MACD has turned mildly bullish, hinting at potential longer-term strength. This divergence between weekly and monthly MACD readings suggests that while short-term traders remain cautious, longer-term investors might find some grounds for optimism.

The Relative Strength Index (RSI) offers limited directional guidance, with both weekly and monthly readings showing no clear signal. This neutral RSI status implies that the stock is neither overbought nor oversold, leaving room for price movement in either direction depending on forthcoming market catalysts.

Moving Averages and Bollinger Bands Signal Caution

Daily moving averages continue to reflect a bearish stance, reinforcing the notion that short-term price action remains under pressure. The stock’s price is yet to decisively break above key moving average levels, which often act as resistance points in a downtrend.

Bollinger Bands add further complexity to the technical landscape. Weekly Bollinger Bands indicate a mildly bearish outlook, while monthly bands are outright bearish. This suggests that price volatility remains skewed towards the downside over the medium term, with the stock trading closer to the lower band on monthly charts. Such positioning often signals increased downside risk or consolidation near support levels.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) oscillator aligns with the MACD’s mixed signals. Weekly KST remains bearish, consistent with short-term momentum weakness, whereas the monthly KST has improved to mildly bullish, reinforcing the possibility of a longer-term recovery phase.

Dow Theory analysis provides a cautiously optimistic perspective. Weekly readings are mildly bullish, suggesting that the stock may be forming a base or experiencing early signs of trend reversal. However, the monthly Dow Theory shows no clear trend, indicating that any sustained recovery remains uncertain.

On-Balance Volume (OBV) metrics further complicate the outlook. Weekly OBV shows no discernible trend, implying a lack of strong volume conviction among traders. Monthly OBV is mildly bearish, signalling that selling pressure may still be present on a broader timeframe.

Comparative Performance and Market Context

Relaxo Footwears Ltd’s recent price momentum must be viewed against its relative performance versus the broader market. Over the past week, the stock has declined by 2.64%, contrasting with the Sensex’s 2.94% gain. This underperformance extends over longer periods: a 7.22% drop in one month versus a 0.59% Sensex rise, and a year-to-date loss of 8.13% compared to the Sensex’s modest 1.36% decline.

Longer-term returns paint a more challenging picture for Relaxo. Over one year, the stock has fallen nearly 30%, while the Sensex has appreciated by 7.97%. Over three and five years, the stock’s cumulative losses of 52.40% and 57.75% starkly contrast with Sensex gains of 38.25% and 63.78%, respectively. Even over a decade, Relaxo’s 75.54% return lags significantly behind the Sensex’s 249.97% growth, underscoring persistent structural challenges within the company or sector.

Mojo Score and Ratings Update

MarketsMOJO’s latest assessment has downgraded Relaxo Footwears Ltd from a ‘Sell’ to a ‘Strong Sell’ rating as of 10 Nov 2025, reflecting deteriorating fundamentals and technical outlook. The company’s Mojo Score stands at a low 27.0, signalling weak momentum and limited upside potential. The Market Cap Grade remains at 3, indicating a small-cap status with associated liquidity and volatility considerations.

This downgrade aligns with the technical indicators’ bearish signals and the stock’s underperformance relative to the benchmark. Investors are advised to exercise caution, as the combination of weak price momentum and negative ratings suggests limited near-term recovery prospects.

Investor Implications and Outlook

From a technical standpoint, Relaxo Footwears Ltd remains in a precarious position. The mixed signals from MACD and KST oscillators, combined with bearish moving averages and Bollinger Bands, suggest that while some longer-term indicators hint at mild bullishness, the dominant trend remains negative. The absence of clear RSI signals and weak volume trends further complicate the outlook.

Investors should weigh these technical factors alongside the company’s fundamental challenges and sector dynamics. The footwear industry faces competitive pressures and evolving consumer preferences, which may continue to weigh on Relaxo’s performance. Given the stock’s persistent underperformance relative to the Sensex and the strong sell rating, a cautious approach is warranted.

Short-term traders might find opportunities in volatility, but longer-term investors should consider the risk-reward profile carefully. Monitoring for a confirmed technical reversal, such as a sustained break above key moving averages or a bullish MACD crossover on weekly charts, would be prudent before increasing exposure.

Summary

Relaxo Footwears Ltd’s technical parameters reveal a stock caught between lingering bearish momentum and tentative signs of recovery. The downgrade to a strong sell rating by MarketsMOJO, combined with weak relative returns and mixed technical indicators, underscores the challenges ahead. While some monthly indicators suggest mild bullishness, the prevailing trend remains cautious, with investors advised to remain vigilant and consider alternative opportunities within the footwear sector.

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