Schaeffler India Ltd Shows Mildly Bullish Momentum Amid Mixed Technical Signals

Technical Trend Evolution and Price Movement

The stock of Schaeffler India Ltd, currently priced at ₹3,852.90, has seen a positive day change of 1.42%, closing above its previous close of ₹3,798.85. The intraday range spanned from ₹3,776.10 to ₹3,900.85, indicating some volatility but with an upward bias. Over the past week, the stock has marginally declined by 0.24%, outperforming the Sensex which fell by 1.18% in the same period. Over the one-month horizon, Schaeffler India gained 1.62%, contrasting with the Sensex’s 1.08% decline, signalling relative strength.

From a broader perspective, the stock has delivered a 9.72% return over the past year, outpacing the Sensex’s 7.72%. Its 3-year and 5-year returns stand at 43.45% and an impressive 320.02% respectively, far exceeding the Sensex’s 40.53% and 72.56% gains. The 10-year return of 383.87% further cements Schaeffler India’s status as a strong long-term performer within the Auto Components & Equipments sector.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains bearish, indicating that short-term momentum is still under pressure. However, the monthly MACD is mildly bearish, suggesting that while the longer-term trend is not decisively positive, it is not strongly negative either. This divergence between weekly and monthly MACD readings points to a potential inflection point where momentum could improve if buying interest sustains.

RSI and Overbought/Oversold Conditions

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This lack of extreme readings implies that the stock is neither overbought nor oversold, providing room for further price movement without immediate risk of a sharp reversal. Investors should monitor RSI closely for any shifts towards overbought levels that might signal a short-term pullback.

Moving Averages and Trend Confirmation

Daily moving averages have turned mildly bullish, reflecting recent price gains above key short-term averages. This shift supports the emerging positive trend and suggests that the stock could continue to build on its momentum. The weekly and monthly moving averages, however, remain less decisive, indicating that the stock is still consolidating its gains on a broader timeframe.

Bollinger Bands and Volatility Assessment

Bollinger Bands analysis reveals a bearish stance on the weekly chart, with price action near the lower band, signalling some downward pressure or consolidation. Conversely, the monthly Bollinger Bands are sideways, indicating a period of reduced volatility and range-bound trading. This mixed volatility environment suggests that while short-term fluctuations may persist, the stock is stabilising in the medium term.

Additional Technical Signals: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator shows bearish momentum on the weekly scale but turns bullish monthly, reinforcing the theme of a potential longer-term uptrend despite short-term weakness. Dow Theory readings align with this, showing a mildly bullish weekly trend but no clear monthly trend, highlighting the transitional phase in price action.

On balance, the On-Balance Volume (OBV) indicator is mildly bullish weekly but mildly bearish monthly, suggesting that volume trends are somewhat conflicted. This could reflect cautious accumulation by investors amid mixed market sentiment.

Mojo Score Upgrade and Market Capitalisation Insights

Schaeffler India’s MarketsMOJO score has improved to 64.0, reflecting a shift from a previous Sell grade to a Hold rating as of 31 Dec 2025. This upgrade signals a more favourable outlook based on recent technical and fundamental assessments. The company holds a Market Cap Grade of 2, indicating a mid-tier market capitalisation relative to its peers in the Auto Components & Equipments sector.

The upgrade to Hold suggests that while the stock is not yet a strong buy, it has stabilised and may offer opportunities for investors seeking exposure to the sector’s recovery and growth potential. The mildly bullish technical trend supports this cautious optimism.

Comparative Performance Versus Sensex

When benchmarked against the Sensex, Schaeffler India has consistently outperformed over multiple timeframes. Its 5-year return of 320.02% dwarfs the Sensex’s 72.56%, and the 10-year return of 383.87% similarly exceeds the Sensex’s 237.61%. This outperformance underscores the company’s resilience and growth within the auto components industry, despite recent market volatility.

Year-to-date, the stock has declined slightly by 0.83%, but this is less severe than the Sensex’s 1.22% drop, indicating relative strength in a challenging market environment.

Investment Considerations and Outlook

Investors should weigh the mildly bullish technical signals against the mixed momentum indicators. The daily moving averages and weekly Dow Theory readings provide a foundation for potential upside, but caution is warranted given the bearish weekly MACD and Bollinger Bands signals. The neutral RSI and sideways monthly Bollinger Bands suggest that the stock is consolidating and may be poised for a breakout if volume and momentum indicators improve.

Given the company’s strong long-term returns and recent upgrade in Mojo Grade, Schaeffler India Ltd appears to be transitioning into a phase of renewed strength. However, the presence of conflicting technical signals means that investors should monitor price action closely and consider broader market conditions before committing to significant positions.

Summary

Schaeffler India Ltd’s recent technical parameter changes reflect a shift towards a mildly bullish momentum, supported by daily moving averages and weekly Dow Theory signals. However, mixed readings from MACD, Bollinger Bands, and OBV indicators counsel prudence. The stock’s strong historical returns and recent Mojo Grade upgrade to Hold provide a solid fundamental backdrop, making it a stock to watch for investors seeking exposure to the auto components sector’s recovery. Close monitoring of momentum indicators and volume trends will be essential to gauge the sustainability of this emerging bullish phase.

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