Religare Enterprises Ltd Faces Technical Momentum Shift Amid Bearish Signals

Technical Trend Shift and Price Movement

Religare Enterprises Ltd (stock code 416310), operating within the Non Banking Financial Company (NBFC) sector, has seen its technical trend evolve from a neutral sideways pattern to a mildly bearish trajectory. The stock closed at ₹242.80 on 30 Dec 2025, down 1.84% from the previous close of ₹247.35. Intraday, the price fluctuated between ₹242.80 and ₹247.30, remaining well below its 52-week high of ₹314.15, while still comfortably above the 52-week low of ₹202.45.

This price action reflects a cautious market sentiment, with the stock underperforming the broader Sensex index over recent periods. Year-to-date, Religare Enterprises has declined by 11.66%, contrasting sharply with the Sensex's robust 8.39% gain. Over the past year, the divergence is even starker, with the stock down 13.87% against the Sensex's 7.62% rise. However, longer-term returns remain impressive, with a five-year gain of 235.36% compared to the Sensex's 77.88%, highlighting the stock's historical resilience despite recent headwinds.

MACD and Momentum Indicators Signal Bearishness

The Moving Average Convergence Divergence (MACD) indicator, a key momentum gauge, presents a bearish outlook on the weekly chart and a mildly bearish stance on the monthly timeframe. The weekly MACD histogram has been trending below the signal line, indicating increasing downward momentum. This suggests that the stock's short-term momentum is weakening, potentially foreshadowing further price declines if the trend persists.

Complementing this, the Know Sure Thing (KST) indicator also aligns with a bearish weekly signal and a mildly bearish monthly reading, reinforcing the momentum deterioration. These indicators collectively point to a shift in investor sentiment, with selling pressure gradually outweighing buying interest.

RSI and Bollinger Bands: Mixed Signals

The Relative Strength Index (RSI) remains neutral on both weekly and monthly charts, offering no definitive overbought or oversold signals at present. This lack of extreme RSI readings suggests that while momentum is weakening, the stock is not yet in an oversold condition that might prompt a technical rebound.

Conversely, Bollinger Bands indicate bearishness on both weekly and monthly timeframes. The stock price has been hugging the lower band on the weekly chart, signalling increased volatility and a potential continuation of the downward trend. The monthly bearish Bollinger Band reading further supports the notion of sustained pressure on the stock price.

Moving Averages and On-Balance Volume (OBV) Insights

Daily moving averages for Religare Enterprises currently show a mildly bullish signal, suggesting some short-term support around the current price levels. The stock price remains close to its short-term moving averages, which may act as a cushion against further declines in the near term.

On the volume front, the On-Balance Volume (OBV) indicator presents a mixed picture. While the weekly OBV shows no clear trend, the monthly OBV is mildly bullish, indicating that despite price weakness, accumulation by investors may be occurring at a slower pace. This divergence between price and volume could hint at a potential base formation, though confirmation is required through price action.

Dow Theory and Broader Market Context

According to Dow Theory analysis, the weekly chart shows no clear trend, reflecting the stock’s recent sideways to mildly bearish movement. The monthly Dow Theory reading is mildly bearish, consistent with other technical indicators signalling caution. This suggests that while the stock is not in a confirmed downtrend, the risk of further downside remains elevated.

Investors should also consider the broader NBFC sector dynamics and macroeconomic factors impacting credit growth and asset quality, which could influence Religare Enterprises’ performance going forward.

Mojo Score and Rating Update

MarketsMOJO has downgraded Religare Enterprises Ltd from a Hold to a Sell rating as of 29 Dec 2025, reflecting the deteriorating technical and fundamental outlook. The company’s Mojo Score stands at 37.0, indicating weak momentum and quality metrics. The Market Cap Grade is a low 3, signalling limited market capitalisation strength relative to peers.

This downgrade underscores the need for investors to exercise caution and reassess their exposure to the stock, especially given the recent technical deterioration and underperformance relative to the Sensex.

Investment Implications and Outlook

Religare Enterprises Ltd’s current technical profile suggests a cautious stance for investors. The shift to a mildly bearish trend, combined with bearish MACD and Bollinger Bands signals, indicates that the stock may face further downward pressure in the short to medium term. The absence of strong RSI signals implies that the stock is not yet oversold, leaving room for additional declines before a potential technical rebound.

While daily moving averages and monthly OBV provide some support hints, these are insufficient to offset the broader bearish momentum. The downgrade to a Sell rating by MarketsMOJO further emphasises the need for prudence.

Investors should closely monitor key support levels near ₹240 and the 52-week low of ₹202.45. A sustained break below these levels could accelerate selling pressure. Conversely, a recovery above short-term moving averages and a positive shift in momentum indicators would be required to signal a reversal.

Given the stock’s underperformance relative to the Sensex and the NBFC sector’s evolving dynamics, portfolio managers may consider reallocating capital towards higher-rated alternatives within the sector or other segments offering stronger momentum and fundamentals.

Summary of Key Technical Indicators for Religare Enterprises Ltd

• MACD: Weekly Bearish, Monthly Mildly Bearish


• RSI: Neutral on Weekly and Monthly


• Bollinger Bands: Bearish on Weekly and Monthly


• Moving Averages: Daily Mildly Bullish


• KST: Weekly Bearish, Monthly Mildly Bearish


• Dow Theory: Weekly No Trend, Monthly Mildly Bearish


• OBV: Weekly No Trend, Monthly Mildly Bullish

In conclusion, Religare Enterprises Ltd is navigating a challenging technical landscape with bearish momentum signals outweighing short-term bullish cues. Investors should remain vigilant and consider the broader market context before making fresh commitments to the stock.

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