Price Momentum and Recent Performance
On 4 Feb 2026, RSWM Ltd’s stock opened strong, hitting a high of ₹155.85 and closing at ₹151.35, up from the previous close of ₹136.45. This 10.92% day gain marks a sharp reversal from the prior bearish trend, suggesting renewed investor interest. The stock’s 52-week range stands between ₹125.10 and ₹191.00, indicating that while the current price remains below its annual peak, it is comfortably above the yearly low, reflecting moderate recovery potential.
Comparatively, RSWM’s recent returns have outpaced the broader Sensex benchmark over the short term. The stock posted a 15.93% return over the past week against Sensex’s 2.30%, and a modest 0.90% gain over the last month compared to the Sensex’s 2.36% decline. Year-to-date, RSWM has gained 1.71%, while the Sensex has fallen 1.74%. However, over longer horizons, the stock has underperformed, with a 7.26% decline over one year versus an 8.49% gain for the Sensex, and a 6.98% drop over three years compared to the Sensex’s 37.63% rise.
Technical Indicator Analysis
The recent upgrade in RSWM’s technical grade to Hold from Sell on 3 Feb 2026 reflects a nuanced shift in momentum. The technical trend has moved from bearish to mildly bearish, indicating some easing of downward pressure but not yet a full bullish reversal.
The Moving Average Convergence Divergence (MACD) remains bearish on both weekly and monthly charts, signalling that the underlying momentum is still weak despite the recent price spike. The Relative Strength Index (RSI) on the weekly timeframe is also bearish, suggesting that the stock is not yet in an oversold or overbought condition but lacks strong upward momentum. The monthly RSI shows no clear signal, indicating indecision at longer timeframes.
Bollinger Bands present a mixed picture: weekly readings are bullish, reflecting increased volatility and upward price movement, while monthly bands are mildly bearish, hinting at potential resistance or consolidation ahead. Daily moving averages remain mildly bearish, reinforcing the view that the stock is in a tentative recovery phase rather than a confirmed uptrend.
Additional Technical Signals
The Know Sure Thing (KST) indicator is bearish on the weekly chart but mildly bullish monthly, suggesting short-term caution with some longer-term optimism. Dow Theory assessments align with this, showing a mildly bullish weekly trend but mildly bearish monthly trend, underscoring the mixed signals across timeframes.
On-Balance Volume (OBV) is mildly bullish weekly, indicating that volume is supporting the recent price gains, but no clear trend is evident monthly. This volume-price relationship is critical for confirming the sustainability of the current rally.
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Market Capitalisation and Mojo Score
RSWM Ltd holds a Market Cap Grade of 4, indicating a mid-sized market capitalisation relative to its peers in the Garments & Apparels sector. The company’s Mojo Score currently stands at 51.0, placing it in the Hold category after an upgrade from Sell on 3 Feb 2026. This score reflects a balanced view of the company’s fundamentals and technical outlook, suggesting investors should maintain positions with caution rather than aggressively buying or selling.
Sector and Industry Context
Operating within the Garments & Apparels industry, RSWM Ltd faces sector-specific challenges including fluctuating raw material costs, changing consumer demand, and global supply chain disruptions. The recent technical signals and price momentum shift may be partially attributed to sector rotation and investor sentiment favouring select apparel stocks showing recovery potential.
Despite the mixed technical signals, the stock’s short-term outperformance relative to the Sensex and its recent price surge indicate that market participants are beginning to reassess RSWM’s prospects. However, the longer-term underperformance relative to the benchmark index suggests that structural challenges remain.
Investment Implications and Outlook
For investors, the current technical landscape of RSWM Ltd suggests a cautious approach. The upgrade to Hold signals that while the stock is no longer in a clear downtrend, it has not yet demonstrated the strength required for a Buy rating. The bearish MACD and RSI readings on weekly charts caution against expecting a sustained rally without further confirmation.
Traders may look for confirmation from daily moving averages turning bullish or a monthly MACD crossover before committing to larger positions. The mildly bullish weekly Dow Theory and OBV readings provide some optimism that the recent price gains could be the start of a more sustained recovery, but the monthly indicators urge prudence.
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Summary of Technical Signals
In summary, RSWM Ltd’s technical indicators present a complex picture. The weekly MACD and RSI remain bearish, while Bollinger Bands and OBV show some bullish tendencies. Monthly indicators are more mixed, with mildly bearish MACD and Bollinger Bands but mildly bullish KST and Dow Theory signals. Daily moving averages remain mildly bearish, indicating that the stock is still in a tentative phase of recovery rather than a confirmed uptrend.
Investors should monitor key technical levels closely, particularly the 50-day and 200-day moving averages, for signs of sustained momentum. A break above the recent high of ₹155.85 with volume confirmation could signal a stronger bullish phase. Conversely, failure to hold above the ₹145 support level may indicate a return to bearish conditions.
Long-Term Performance Context
While the short-term momentum has improved, RSWM Ltd’s long-term returns lag behind the Sensex significantly. Over the past 10 years, the stock has declined by 19.77%, whereas the Sensex has surged 245.70%. This underperformance highlights the importance of considering both technical and fundamental factors before making investment decisions.
Given the company’s current Mojo Grade of Hold and a moderate Mojo Score of 51.0, investors should weigh the recent technical improvements against the broader market context and sector dynamics.
Conclusion
RSWM Ltd’s recent price momentum shift and technical grade upgrade reflect a tentative improvement in market sentiment. However, mixed signals from key technical indicators such as MACD, RSI, and moving averages suggest that the stock remains in a cautious phase. Investors are advised to watch for confirmation of sustained bullish momentum before increasing exposure, while also considering the company’s longer-term underperformance relative to the Sensex and sector peers.
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