Price Momentum and Recent Market Performance
On 4 February 2026, Rico Auto Industries Ltd closed at ₹121.00, marking a 4.09% increase from the previous close of ₹116.25. The stock traded within a range of ₹118.60 to ₹124.00 during the day, reflecting heightened volatility and buying interest. Despite being below its 52-week high of ₹142.30, the current price is significantly above the 52-week low of ₹49.50, indicating a strong recovery over the past year.
Comparing returns with the broader Sensex index reveals a mixed but generally favourable picture for Rico Auto. Over the past week, the stock outperformed the Sensex with a 5.03% gain versus the index’s 2.30%. However, over the one-month and year-to-date periods, the stock has underperformed, declining 10.40% and 11.19% respectively, compared to Sensex losses of 2.36% and 1.74%. Over longer horizons, Rico Auto has delivered impressive returns, with a 45.38% gain over one year and a remarkable 223.10% over five years, far outpacing the Sensex’s 8.49% and 66.63% respectively.
Technical Indicators Signal Bullish Shift
The technical landscape for Rico Auto Industries Ltd has evolved from mildly bullish to outright bullish, reflecting a positive shift in market sentiment. The daily moving averages are firmly bullish, signalling that short-term price momentum is gaining strength. This is corroborated by the weekly and monthly Bollinger Bands, both indicating bullish trends, suggesting that price volatility is expanding upwards with strong momentum.
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced view. While the weekly MACD remains mildly bearish, the monthly MACD has turned bullish, indicating that longer-term momentum is improving despite some short-term consolidation. The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, implying that the stock is neither overbought nor oversold, which could allow room for further upward movement without immediate risk of a reversal.
Additional momentum indicators such as the Know Sure Thing (KST) oscillator are bullish on both weekly and monthly timeframes, reinforcing the positive momentum narrative. The On-Balance Volume (OBV) indicator is mildly bearish on the weekly chart but bullish on the monthly, suggesting that while short-term volume trends may be cautious, the longer-term accumulation by investors remains strong.
Dow Theory assessments provide a mixed but improving outlook. The weekly trend is mildly bearish, but the monthly trend has shifted to mildly bullish, indicating that the broader market trend for Rico Auto is gaining upward traction despite some short-term fluctuations.
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Mojo Score Upgrade Reflects Improved Outlook
Reflecting these technical improvements, MarketsMOJO upgraded Rico Auto Industries Ltd’s Mojo Grade from Hold to Buy on 10 November 2025, with a current Mojo Score of 77.0. This upgrade signals increased confidence in the stock’s potential for price appreciation. The company’s market capitalisation grade stands at 4, indicating a mid-sized market cap that balances growth potential with liquidity.
The upgrade is supported by the stock’s technical trend change from mildly bullish to bullish, which aligns with the positive signals from moving averages and momentum oscillators. This technical upgrade is significant for investors seeking stocks with improving momentum and a favourable risk-reward profile.
Long-Term Performance and Sector Context
Rico Auto Industries operates within the Auto Components & Equipments sector, a segment that has shown resilience amid cyclical pressures in the automotive industry. The company’s long-term returns have been robust, with a 10-year return of 213.07%, closely tracking the Sensex’s 245.70% over the same period. This performance underscores the company’s ability to generate sustained shareholder value over time.
While short-term volatility and recent underperformance relative to the Sensex may concern some investors, the technical indicators suggest that the stock is poised for a potential rebound. The bullish signals from Bollinger Bands and KST, combined with the positive monthly MACD and Dow Theory trends, provide a compelling case for renewed upward momentum.
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Investor Considerations and Outlook
Investors should note that while the technical indicators are largely positive, some weekly signals remain mildly bearish, suggesting that short-term caution is warranted. The RSI’s neutral stance indicates that the stock is not currently overextended, which may provide a window for further gains without immediate risk of correction.
Given the stock’s strong long-term track record and recent technical upgrades, it may appeal to investors seeking exposure to the auto components sector with a focus on momentum-driven opportunities. The current price action above key moving averages and the bullish monthly MACD support a constructive outlook for the coming months.
However, investors should remain vigilant for any shifts in broader market conditions or sector-specific headwinds that could impact the stock’s trajectory. Monitoring volume trends and short-term momentum oscillators will be crucial to gauge the sustainability of the current bullish phase.
Summary
Rico Auto Industries Ltd’s recent price momentum shift, supported by a suite of bullish technical indicators, has led to an upgrade in its Mojo Grade to Buy. The stock’s strong long-term returns, combined with improving monthly MACD, Bollinger Bands, and KST signals, suggest a positive trend reversal. While some weekly indicators remain cautious, the overall technical picture favours a bullish outlook, making Rico Auto a stock to watch in the auto components sector.
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