SKF India Ltd Technical Momentum Shifts Signal Bullish Outlook Amid Strong Returns

Technical Momentum and Price Action

On 25 Feb 2026, SKF India Ltd closed at ₹1,895.95, up from the previous close of ₹1,797.25, marking a robust 5.49% increase. The intraday range saw a low of ₹1,753.00 and a high of ₹1,911.65, reflecting heightened volatility and buying interest. Despite trading below its 52-week high of ₹2,395.85, the stock has rebounded strongly from its 52-week low of ₹730.55, signalling a sustained recovery phase.

The technical trend has upgraded from mildly bullish to bullish, a shift that aligns with the daily moving averages now firmly supporting upward price momentum. The daily moving averages have crossed key resistance levels, indicating that short-term momentum is gaining strength. This is a critical development for traders and investors looking for confirmation of a sustained uptrend.

MACD and RSI Analysis

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bearish, suggesting some caution in the medium term. However, the monthly MACD has turned bullish, signalling that longer-term momentum is improving. This divergence between weekly and monthly MACD readings suggests that while short-term fluctuations may persist, the broader trend is increasingly positive.

Relative Strength Index (RSI) readings for both weekly and monthly timeframes currently show no definitive signal, hovering in neutral zones. This indicates that the stock is neither overbought nor oversold, providing room for further upward movement without immediate risk of a technical pullback.

Bollinger Bands and KST Indicators

Bollinger Bands on the weekly chart are moving sideways, reflecting a consolidation phase in the short term. Conversely, the monthly Bollinger Bands are bullish, reinforcing the longer-term positive outlook. This suggests that while the stock may experience short-term range-bound trading, the underlying trend remains constructive.

The Know Sure Thing (KST) indicator adds further depth to the analysis. Weekly KST remains mildly bearish, consistent with the weekly MACD, but the monthly KST is bullish. This mixed signal again highlights the importance of considering multiple timeframes when assessing momentum and trend strength.

Volume and On-Balance Volume (OBV) Trends

Volume analysis reveals increased trading activity accompanying the recent price rise, a positive confirmation of the bullish momentum. The On-Balance Volume (OBV) indicator supports this view, showing a mildly bullish trend on the weekly chart and a bullish trend on the monthly chart. This suggests that accumulation is taking place, with buyers stepping in to support higher prices.

Dow Theory and Market Sentiment

According to Dow Theory, the weekly trend is mildly bullish, indicating that the stock is in an early phase of an upward cycle. However, the monthly Dow Theory reading is mildly bearish, reflecting some caution among longer-term investors. This mixed sentiment underscores the importance of monitoring key support and resistance levels closely in the coming weeks.

Comparative Performance Versus Sensex

SKF India Ltd has significantly outperformed the Sensex across multiple time horizons. Over the past week, the stock returned 11.77%, while the Sensex declined by 1.47%. Over one month, SKF India gained 8.90% compared to the Sensex’s 0.84% rise. Year-to-date, SKF India is up 2.30%, whereas the Sensex has fallen 3.51%. The stock’s one-year return is an impressive 143.05%, dwarfing the Sensex’s 10.44% gain.

Longer-term returns also highlight SKF India’s strong performance: 103.46% over three years versus 38.28% for the Sensex, 306.41% over five years compared to 61.92%, and a remarkable 701.64% over ten years against the Sensex’s 256.13%. These figures underscore the company’s resilience and growth potential within the industrial products sector.

Valuation and Mojo Score Insights

MarketsMOJO assigns SKF India a Mojo Score of 67.0, upgrading its Mojo Grade from Sell to Hold as of 1 Oct 2025. This reflects an improved outlook based on technical and fundamental factors. The Market Cap Grade stands at 3, indicating a mid-sized market capitalisation relative to peers. The upgrade in grade signals that while the stock is not yet a strong buy, it is gaining favour among analysts and technical models.

Outlook and Investor Considerations

Investors should note the mixed signals from weekly and monthly indicators, which suggest that while short-term volatility may persist, the longer-term trend is increasingly positive. The bullish daily moving averages and monthly MACD provide a solid foundation for further gains, but caution is warranted given the weekly bearish signals on MACD and KST.

Given the stock’s strong relative performance versus the Sensex and its recovery from lows, SKF India appears well-positioned to capitalise on industrial sector growth. However, investors should monitor key technical levels around ₹1,900 and the 52-week high near ₹2,395 for confirmation of sustained momentum.

Summary

SKF India Ltd’s technical parameters have shifted favourably, with a clear bullish tilt emerging in daily moving averages and monthly momentum indicators. Despite some weekly bearish signals, the overall trend is constructive, supported by strong volume and relative strength versus the broader market. The upgrade in Mojo Grade to Hold reflects this improved outlook, making SKF India a stock to watch closely in the industrial products sector.

Investors should remain vigilant for confirmation of sustained momentum above key resistance levels and consider the broader market context when positioning in this stock. The combination of technical strength and robust long-term returns positions SKF India as a compelling candidate for inclusion in diversified industrial portfolios.

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