Price Movement and Market Context
On 21 January 2026, Rico Auto Industries Ltd closed at ₹116.05, down 3.61% from the previous close of ₹120.40. The stock traded within a range of ₹115.65 to ₹123.50 during the day, remaining well below its 52-week high of ₹142.30 but comfortably above its 52-week low of ₹49.50. This recent price contraction contrasts with the broader market, where the Sensex has shown relatively muted declines over comparable periods.
Examining returns, Rico Auto Industries has underperformed the Sensex in the short term, with a one-week return of -9.41% versus the Sensex’s -1.73%, and a one-month return of -5.38% compared to the Sensex’s -3.24%. Year-to-date, the stock has declined 14.83%, significantly more than the Sensex’s 3.57% fall. However, over longer horizons, Rico Auto Industries has delivered robust gains, with a one-year return of 27.01% outperforming the Sensex’s 6.63%, and a five-year return of 214.93% far exceeding the Sensex’s 65.05%. This long-term outperformance underscores the company’s resilience despite recent volatility.
Technical Indicator Analysis
The technical trend for Rico Auto Industries has shifted from bullish to mildly bullish, reflecting a more cautious outlook among traders and analysts. The Moving Average Convergence Divergence (MACD) indicator remains bullish on both weekly and monthly timeframes, signalling that the underlying momentum is still positive despite short-term price weakness. The MACD’s sustained bullishness suggests that the stock could be consolidating before a potential upward move.
Relative Strength Index (RSI) readings on weekly and monthly charts currently show no clear signal, indicating neither overbought nor oversold conditions. This neutral RSI stance implies that the stock is not experiencing extreme momentum in either direction, which aligns with the mildly bullish trend.
Bollinger Bands on weekly and monthly charts also indicate a mildly bullish environment. The stock price is trading near the middle to upper band range, suggesting moderate volatility with a slight upward bias. This positioning often precedes a breakout or a period of consolidation.
Moving Averages and Other Momentum Indicators
Daily moving averages for Rico Auto Industries are mildly bullish, with short-term averages hovering just above longer-term averages. This alignment typically signals a positive trend, though the mild nature of the signal advises caution. The KST (Know Sure Thing) indicator remains bullish on both weekly and monthly charts, reinforcing the presence of underlying positive momentum.
However, the Dow Theory presents a mixed picture: weekly signals are mildly bearish, while monthly signals remain mildly bullish. This divergence suggests that while short-term price action may be under pressure, the longer-term trend retains some strength.
On-Balance Volume (OBV) analysis also reflects this duality. Weekly OBV is mildly bearish, indicating that volume trends may not be supporting recent price gains, whereas monthly OBV remains bullish, suggesting accumulation over a longer timeframe.
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Mojo Score Upgrade and Market Capitalisation
MarketsMOJO has upgraded Rico Auto Industries Ltd’s Mojo Grade from Hold to Buy as of 10 November 2025, reflecting improved confidence in the stock’s prospects. The company’s Mojo Score stands at a solid 70.0, indicating favourable technical and fundamental parameters. The Market Cap Grade is rated 4, signalling a mid-cap status with reasonable liquidity and market presence.
This upgrade is consistent with the mildly bullish technical trend and the positive signals from MACD and KST, suggesting that the stock may be poised for a recovery or sustained upward movement in the medium term.
Sector and Industry Context
Operating within the Auto Components & Equipments sector, Rico Auto Industries faces sector-specific challenges such as fluctuating raw material costs and demand variability linked to the automotive industry cycle. Despite these headwinds, the company’s long-term returns have outpaced the Sensex, highlighting its operational resilience and growth potential.
Investors should note that the sector’s cyclical nature can amplify short-term volatility, as reflected in the recent price pullback. However, the technical indicators suggest that the stock is not in a bearish freefall but rather in a phase of consolidation with underlying bullish momentum.
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Investor Takeaways and Outlook
For investors analysing Rico Auto Industries Ltd, the current mildly bullish technical stance suggests a cautious but optimistic outlook. The sustained bullishness in MACD and KST indicators on weekly and monthly charts supports the view that the stock retains upward momentum despite recent price weakness. Meanwhile, neutral RSI readings and mildly bullish Bollinger Bands indicate that the stock is not overextended and may be preparing for a directional move.
However, the mildly bearish signals from weekly Dow Theory and OBV caution that short-term selling pressure and volume trends could weigh on price action. This mixed technical picture advises investors to monitor the stock closely for confirmation of trend direction before committing significant capital.
Long-term investors may find comfort in the company’s strong historical returns and recent upgrade in Mojo Grade, which reflect improving fundamentals and technicals. Short-term traders should consider the current volatility and mixed signals as a reason to adopt a more measured approach, potentially waiting for clearer confirmation of trend strength.
Overall, Rico Auto Industries Ltd presents a compelling case of a stock in transition, balancing between consolidation and potential renewed momentum within the auto components sector.
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