SP Apparels Ltd. Technical Momentum Shifts to Bearish Amid Price Decline

Technical Trend Overview

The technical landscape for SP Apparels has deteriorated from a mildly bearish stance to a more pronounced bearish trend. The Moving Averages on the daily chart have turned decisively bearish, indicating sustained downward pressure on the stock price. This shift is corroborated by the weekly and monthly MACD (Moving Average Convergence Divergence) readings, which remain bearish and mildly bearish respectively, signalling weakening momentum over both short and medium terms.

Further, the Bollinger Bands on both weekly and monthly timeframes are bearish, suggesting increased volatility with the price trending towards the lower band, a classic sign of selling pressure. The KST (Know Sure Thing) indicator also aligns with this bearish narrative, showing a weekly bearish and monthly mildly bearish stance, reinforcing the momentum loss.

RSI and Other Momentum Indicators

The Relative Strength Index (RSI) on weekly and monthly charts currently shows no clear signal, hovering in a neutral zone. This absence of a definitive RSI signal suggests that while the stock is not yet oversold, it lacks the bullish momentum needed to reverse the downward trend. Meanwhile, the On-Balance Volume (OBV) indicator presents a mixed picture: mildly bullish on the weekly scale but mildly bearish monthly, indicating that volume trends are not decisively supporting a strong directional move.

Price Action and Volatility

SP Apparels’ intraday price range on 3 Feb 2026 was between ₹641.95 and ₹679.95, with the stock closing near the lower end of this range. The 52-week high of ₹990.00 and low of ₹585.00 highlight the stock’s wide trading band over the past year, but the current price remains closer to the lower bound, underscoring the recent bearish momentum.

Comparatively, the Sensex has shown more resilience, with a 1-week return of 0.16% versus SP Apparels’ 1.92% gain in the same period. However, over longer horizons, SP Apparels has underperformed significantly, with a 1-year return of -27.11% against Sensex’s 5.37%. Despite this, the stock has delivered impressive long-term gains, with 3-year and 5-year returns of 117.14% and 320.08% respectively, far outpacing the Sensex’s 36.26% and 64.00% returns.

Dow Theory and Market Sentiment

Interestingly, Dow Theory readings present a somewhat contradictory signal. The weekly Dow Theory is mildly bullish, suggesting some underlying strength or potential for a reversal in the short term. However, the monthly Dow Theory shows no clear trend, indicating uncertainty in the broader market context. This divergence highlights the complexity of the current technical environment for SP Apparels, where short-term optimism is tempered by longer-term caution.

Mojo Score and Grade Revision

Reflecting these technical developments, MarketsMOJO has downgraded SP Apparels’ Mojo Grade from Buy to Hold as of 24 Nov 2025. The current Mojo Score stands at 53.0, signalling a neutral stance. The Market Cap Grade is 3, indicating a mid-tier market capitalisation within its sector. This downgrade aligns with the deteriorating technical indicators and recent price weakness, advising investors to adopt a more cautious approach.

Investment Implications and Outlook

For investors, the shift to a bearish technical trend suggests that SP Apparels may face continued downward pressure in the near term. The absence of strong RSI signals and mixed volume indicators imply that a clear reversal is not imminent. However, the stock’s long-term performance remains robust, and the mildly bullish weekly Dow Theory reading could hint at potential short-term relief rallies.

Given the current technical setup, investors should closely monitor key support levels near ₹585.00 and watch for any improvement in momentum indicators such as MACD crossing into bullish territory or RSI moving above 50. Until such signals emerge, a Hold rating appears prudent, balancing the stock’s historical strength against recent technical weakness.

Sector and Industry Context

Within the Garments & Apparels sector, SP Apparels faces competitive pressures and cyclical demand fluctuations. The sector itself has shown mixed technical signals, with some peers exhibiting stronger momentum and others similarly struggling with bearish trends. This environment necessitates a selective approach, favouring companies with clearer technical and fundamental strengths.

SP Apparels’ current technical challenges may reflect broader sector headwinds, including raw material cost volatility and shifting consumer preferences. Investors should weigh these factors alongside the company’s individual performance and technical signals when making portfolio decisions.

Summary

In summary, SP Apparels Ltd. is navigating a complex technical landscape marked by a shift from mildly bearish to bearish momentum. Key indicators such as MACD, Bollinger Bands, and moving averages signal caution, while RSI and OBV provide a neutral to mixed outlook. The downgrade in Mojo Grade to Hold underscores the need for prudence amid recent price declines and technical deterioration.

Long-term investors may find value in the stock’s historical outperformance, but short-term traders should remain alert to further downside risks until technical conditions improve. Monitoring support levels and momentum indicators will be critical in assessing the stock’s next directional move.

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