Spandana Sphoorty Financial Ltd Faces Mixed Technical Signals Amid Price Momentum Shift

Technical Trend Overview and Price Movement

Spandana Sphoorty Financial Ltd (NSE: SPANDANA) closed at ₹247.95 on 3 Feb 2026, down 1.41% from the previous close of ₹251.50. The stock traded within a range of ₹240.00 to ₹257.80 during the day, remaining well below its 52-week high of ₹360.10 but comfortably above the 52-week low of ₹214.70. This price action reflects ongoing volatility amid a challenging macroeconomic environment for NBFCs.

The technical trend has shifted from a bearish to a mildly bearish stance, signalling a potential easing of downward pressure but no definitive reversal yet. This subtle change is corroborated by the mixed readings from various momentum and trend-following indicators.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a dichotomy in its weekly and monthly signals. On a weekly basis, the MACD remains bearish, indicating that short-term momentum is still negative. However, the monthly MACD has turned mildly bullish, suggesting that longer-term momentum may be stabilising or beginning to improve. This divergence often points to a transitional phase where short-term selling pressure persists but longer-term buyers are gradually stepping in.

Complementing this, the Know Sure Thing (KST) indicator aligns with the MACD’s mixed signals: weekly readings remain bearish, while monthly readings have improved to mildly bullish. This further supports the notion of a tentative shift in momentum, albeit one that requires confirmation through sustained price action.

Relative Strength Index and Bollinger Bands

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This absence of extreme overbought or oversold conditions suggests that the stock is consolidating rather than trending strongly in either direction.

Meanwhile, Bollinger Bands remain bearish on both weekly and monthly timeframes. The stock price continues to trade near the lower band, indicating persistent downward pressure and elevated volatility. This technical setup often precedes either a continuation of the downtrend or a potential rebound if the price finds support.

Moving Averages and Volume-Based Indicators

Daily moving averages reinforce the bearish outlook, with the stock trading below its key short-term and medium-term averages. This suggests that the prevailing trend remains downward, and any rallies may face resistance near these moving averages.

On the volume front, the On-Balance Volume (OBV) indicator is mildly bullish on both weekly and monthly charts. This divergence between price and volume hints at accumulation by informed investors, which could provide a foundation for a future recovery if buying interest intensifies.

Dow Theory and Market Context

According to Dow Theory, Spandana shows no clear trend on either weekly or monthly charts. This lack of directional confirmation adds to the uncertainty surrounding the stock’s near-term trajectory. Investors should therefore exercise caution and look for additional confirmation signals before committing to new positions.

Comparing Spandana’s returns with the broader Sensex index highlights the stock’s underperformance. Over the past week, Spandana gained 3.48%, outperforming the Sensex’s modest 0.16% rise. However, over longer periods, the stock has lagged significantly. It has declined 7.12% in the past month versus the Sensex’s 4.78% fall, and year-to-date, it is down 8.01% compared to the Sensex’s 4.17% loss.

More starkly, the one-year return for Spandana is -22.82%, while the Sensex has gained 5.37%. Over three and five years, the stock’s cumulative losses of 56.01% and 67.15% contrast sharply with the Sensex’s gains of 36.26% and 64.00%, respectively. This persistent underperformance reflects structural challenges in the NBFC sector and company-specific headwinds.

MarketsMOJO Ratings and Quality Grades

MarketsMOJO has recently downgraded Spandana Sphoorty Financial Ltd from a Sell to a Strong Sell rating as of 2 June 2025, reflecting deteriorating fundamentals and technical outlook. The company’s Mojo Score stands at a low 23.0, underscoring weak momentum and quality metrics. Its Market Cap Grade is 3, indicating a relatively small market capitalisation within the finance sector.

This downgrade signals heightened risk for investors, particularly given the stock’s bearish daily moving averages and persistent pressure from Bollinger Bands. The mildly bullish volume indicators offer some hope, but the overall technical and fundamental picture remains cautious.

Investor Takeaway and Outlook

Spandana Sphoorty Financial Ltd’s technical indicators paint a picture of a stock in transition. While short-term momentum remains bearish, longer-term signals such as the monthly MACD and OBV suggest a mild improvement in buying interest. However, the absence of clear RSI signals and the bearish stance of Bollinger Bands and moving averages caution against premature optimism.

Investors should weigh the stock’s persistent underperformance against the Sensex and the recent Strong Sell rating by MarketsMOJO. The company’s current price near ₹248 is significantly below its 52-week high, reflecting ongoing sectoral and company-specific challenges. Those considering exposure to Spandana should monitor for confirmation of a sustained technical turnaround before increasing positions.

Given the mixed signals, a prudent approach would be to watch for a break above key moving averages and a sustained bullish crossover in momentum indicators before revisiting the stock’s prospects. Until then, the mildly bearish technical trend and fundamental concerns suggest a cautious stance.

Summary of Key Technical Metrics:

• MACD: Weekly Bearish, Monthly Mildly Bullish
• RSI: No clear signal on weekly or monthly charts
• Bollinger Bands: Bearish on both weekly and monthly
• Moving Averages: Daily Bearish, price below key averages
• KST: Weekly Bearish, Monthly Mildly Bullish
• Dow Theory: No clear trend
• OBV: Mildly Bullish on weekly and monthly

Comparative Returns vs Sensex:

• 1 Week: +3.48% vs Sensex +0.16%
• 1 Month: -7.12% vs Sensex -4.78%
• Year-to-Date: -8.01% vs Sensex -4.17%
• 1 Year: -22.82% vs Sensex +5.37%
• 3 Years: -56.01% vs Sensex +36.26%
• 5 Years: -67.15% vs Sensex +64.00%

In conclusion, Spandana Sphoorty Financial Ltd remains a stock under pressure with tentative signs of momentum stabilisation. Investors should remain vigilant and consider broader market conditions and sectoral trends before making investment decisions.

Unlock special upgrade rates for a limited period. Start Saving Now →