SP Apparels Ltd. Technical Momentum Shifts Amid Mixed Indicator Signals

Current Price and Market Context

As of 2 Feb 2026, SP Apparels is trading at ₹675.45, marginally up by 0.34% from the previous close of ₹673.15. The stock’s intraday range has been between ₹672.45 and ₹705.00, indicating some volatility but a firm attempt to test higher levels. The 52-week high stands at ₹990.00, while the 52-week low is ₹585.00, placing the current price closer to the lower end of its annual range. This positioning suggests the stock is still recovering from past weakness but has not yet regained its previous highs.

Technical Trend and Indicator Overview

The technical trend for SP Apparels has shifted from bearish to mildly bearish, signalling a tentative improvement but still reflecting caution. The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture: the weekly MACD remains bearish, while the monthly MACD has softened to mildly bearish. This divergence suggests that short-term momentum is still under pressure, but longer-term momentum may be stabilising.

The Relative Strength Index (RSI) adds further complexity. On a weekly basis, the RSI shows no clear signal, hovering in a neutral zone that neither confirms overbought nor oversold conditions. However, the monthly RSI is bullish, indicating that over a longer horizon, buying interest is gaining traction. This bullish monthly RSI could be an early sign of a potential upward momentum shift if supported by other indicators.

Bollinger Bands, which measure volatility and price levels relative to moving averages, are mildly bearish on both weekly and monthly charts. This suggests that the stock price is trading near the lower band, often interpreted as a sign of weakness or consolidation before a possible reversal. The daily moving averages remain bearish, reinforcing the short-term downtrend and signalling that the stock has yet to break out decisively above key resistance levels.

Additional Technical Signals

The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, is bearish on the weekly timeframe and mildly bearish monthly. This aligns with the MACD’s message of cautious momentum. Meanwhile, Dow Theory analysis provides a mildly bullish weekly signal but no clear trend on the monthly scale, reflecting some optimism in the short term but uncertainty over the longer term.

On-Balance Volume (OBV), a volume-based indicator that can confirm price trends, shows no discernible trend on either 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 could limit the sustainability of any rally.

Performance Relative to Sensex

Examining SP Apparels’ returns relative to the Sensex provides valuable context. Over the past week, the stock outperformed the benchmark with a 5.12% gain compared to the Sensex’s 1.00% decline. However, over the last month and year-to-date periods, SP Apparels underperformed, declining by 3.5% and 3.54% respectively, though these losses were less severe than the Sensex’s declines of 4.67% and 5.28%. Over a one-year horizon, the stock has fallen 13.05%, contrasting with the Sensex’s 5.16% gain, highlighting sector-specific or company-specific challenges.

Longer-term returns paint a more favourable picture. Over three years, SP Apparels has delivered a robust 125.83% return, significantly outpacing the Sensex’s 35.67%. Over five years, the stock’s return of 344.96% dwarfs the Sensex’s 74.40%, underscoring the company’s strong growth trajectory despite recent setbacks. The absence of 10-year data limits further comparison but the existing figures indicate substantial value creation over the medium term.

Mojo Score and Grade Revision

SP Apparels currently holds a Mojo Score of 58.0, placing it in the Hold category with a Mojo Grade of Hold. This represents a downgrade from its previous Buy rating, which was revised on 24 Nov 2025. The downgrade reflects the mixed technical signals and the cautious outlook from MarketsMOJO’s proprietary analysis. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers in the Garments & Apparels sector.

Implications for Investors

The technical landscape for SP Apparels suggests a stock in transition. The mildly bearish trend and bearish daily moving averages caution investors against expecting an immediate breakout. However, the bullish monthly RSI and mildly bullish Dow Theory weekly signal hint at a potential stabilisation or recovery in the medium term. Investors should watch for confirmation from volume indicators and a sustained move above key moving averages to validate any upward momentum.

Given the stock’s strong long-term returns, the current technical consolidation could represent a buying opportunity for patient investors who are comfortable with some near-term volatility. Conversely, those seeking more immediate momentum might prefer to wait for clearer bullish confirmation before increasing exposure.

Sector and Industry Considerations

The Garments & Apparels sector has faced headwinds in recent months, impacted by fluctuating raw material costs, changing consumer demand, and global supply chain disruptions. SP Apparels’ technical indicators mirror these challenges, with short-term bearishness tempered by longer-term bullish signals. The company’s ability to navigate these sectoral pressures will be critical in determining whether the current technical consolidation evolves into a sustained uptrend.

Conclusion

SP Apparels Ltd. presents a technically complex picture as it moves through a phase of momentum realignment. While short-term indicators remain cautious, longer-term signals offer hope for recovery. The downgrade to a Hold rating by MarketsMOJO reflects this balanced view, urging investors to monitor key technical levels and volume trends closely. With strong historical returns and a current price near the lower end of its annual range, the stock remains an intriguing candidate for those willing to engage with its nuanced technical profile.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →