Current Price Action and Market Context
As of 30 Dec 2025, Shriram AMC closed at ₹401.00, up from the previous close of ₹396.50. The intraday range saw a low of ₹390.05 and a high of ₹408.60, indicating some volatility within the session. The stock remains significantly below its 52-week high of ₹690.00, while comfortably above its 52-week low of ₹331.80. This wide trading range underscores the stock’s recent struggles amid broader market pressures.
Comparatively, Shriram AMC’s returns have lagged the benchmark Sensex over recent periods. Year-to-date, the stock has declined by 30.26%, whereas the Sensex has gained 8.39%. Over the past year, the stock’s return stands at -28.46%, contrasting with the Sensex’s 7.62% gain. However, the longer-term performance remains impressive, with a 10-year return of 1,060.64% versus the Sensex’s 224.76%, reflecting the company’s historical growth trajectory despite recent headwinds.
Technical Trend Overview
The technical trend for Shriram AMC has shifted from a clearly bearish stance to a mildly bearish one, signalling a potential stabilisation but not yet a definitive recovery. This subtle change is reflected in several key indicators:
- MACD: The Moving Average Convergence Divergence remains bearish on the weekly chart, indicating downward momentum, while the monthly chart shows a mildly bearish stance, suggesting some easing of selling pressure over the longer term.
- RSI: The Relative Strength Index does not currently provide a clear signal on either the weekly or monthly charts, hovering in a neutral zone that neither confirms oversold nor overbought conditions.
- Bollinger Bands: Weekly readings are mildly bearish, with the price likely testing the lower band, while monthly readings remain bearish, indicating sustained volatility and downward pressure.
- Moving Averages: Daily moving averages are mildly bearish, with the stock price trading near or slightly below key averages, suggesting resistance to upward momentum in the short term.
- KST (Know Sure Thing): This momentum oscillator is mildly bullish on the weekly chart but mildly bearish on the monthly chart, highlighting a divergence between short-term optimism and longer-term caution.
- Dow Theory: Weekly data shows no clear trend, while monthly data indicates a mildly bullish trend, reflecting some underlying strength that may take time to materialise in price action.
Volume and On-Balance Volume (OBV) Analysis
Volume-based indicators such as OBV are currently inconclusive, with no definitive signals on weekly or monthly charts. This lack of volume confirmation suggests that recent price movements may not be strongly supported by investor participation, a factor that often precedes more significant directional moves.
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Mojo Score and Ratings Update
Shriram AMC’s MarketsMOJO score currently stands at 17.0, categorised as a Strong Sell. This represents a downgrade from the previous Sell rating, effective from 18 Aug 2025. The downgrade reflects deteriorating technical and fundamental metrics, signalling increased risk for investors. The company’s market capitalisation grade is 4, indicating a mid-tier market cap within its sector.
Sector and Industry Context
Operating within the Capital Markets sector, Shriram AMC faces sector-wide challenges including regulatory changes, market volatility, and competitive pressures. The sector’s performance has been mixed, with some peers showing resilience while others struggle with liquidity and investor confidence. Shriram AMC’s technical indicators suggest it is currently underperforming relative to its industry cohort.
Moving Averages and Momentum Indicators in Detail
Daily moving averages, including the 50-day and 200-day, are mildly bearish, with the stock price hovering near the 50-day average but below the 200-day average. This positioning often signals a lack of strong upward momentum and potential resistance ahead. The MACD’s bearish weekly reading confirms that short-term momentum remains weak, despite the monthly chart’s mildly bearish tone indicating some easing of downward pressure.
The KST oscillator’s mildly bullish weekly reading suggests some short-term momentum gains, possibly driven by recent price upticks. However, the monthly mildly bearish reading tempers this optimism, implying that any rally may be limited or short-lived without stronger fundamental support.
Relative Strength Index (RSI) Neutrality
The RSI’s neutral stance on both weekly and monthly charts indicates the stock is neither oversold nor overbought. This neutrality suggests that the stock could move in either direction depending on upcoming market catalysts or sector developments. Investors should watch for RSI movements beyond the 70 or below 30 thresholds for clearer momentum signals.
Long-Term Performance and Investor Implications
Despite recent setbacks, Shriram AMC’s long-term returns remain robust, with a 5-year return of 686.27% and a 10-year return exceeding 1,000%. This historical performance highlights the company’s capacity for growth over extended periods, though current technical signals advise caution for near-term trading.
Investors should consider the stock’s current technical profile alongside fundamental factors and sector dynamics. The mixed signals from momentum indicators and moving averages suggest that while a recovery is possible, the risk of further declines remains elevated.
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Conclusion: Navigating a Complex Technical Landscape
Shriram Asset Management Co Ltd’s technical indicators present a nuanced picture. While some short-term momentum indicators show mild bullishness, the prevailing trend remains mildly bearish, with key oscillators and moving averages signalling caution. The stock’s underperformance relative to the Sensex and its downgrade to a Strong Sell rating by MarketsMOJO reinforce the need for prudence.
Investors should closely monitor upcoming price action, particularly movements relative to moving averages and the MACD crossover signals, to gauge potential trend reversals. The neutral RSI and mixed KST readings suggest that the stock could either consolidate or face further downward pressure depending on market conditions.
Given the current technical and fundamental backdrop, a conservative approach is advisable, with consideration given to alternative investments within the Capital Markets sector that may offer stronger momentum and more favourable risk-reward profiles.
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