Steel Strips Wheels Ltd Shows Mixed Technical Signals Amid Mild Momentum Shift

Technical Trend Overview and Price Movement

As of 31 Dec 2025, Steel Strips Wheels Ltd closed at ₹191.05, marking a modest increase of 0.90% from the previous close of ₹189.35. The stock traded within a range of ₹187.55 to ₹191.45 during the day, remaining well below its 52-week high of ₹279.60 but comfortably above the 52-week low of ₹167.50. This price action suggests a consolidation phase, with the stock attempting to stabilise after a period of downward pressure.

The technical trend has shifted from bearish to mildly bearish, signalling a potential easing of selling pressure but not yet a definitive reversal. This is corroborated by the daily moving averages, which remain bearish, indicating that the short-term momentum is still under strain. Investors should note that moving averages often act as dynamic support or resistance levels, and the current bearish alignment suggests caution.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD remains bearish, reflecting ongoing downward momentum in the medium term. However, the monthly MACD has improved to mildly bearish, hinting at a possible bottoming out or a gradual shift in trend over a longer horizon. This divergence between weekly and monthly MACD readings suggests that while short-term pressures persist, longer-term momentum may be stabilising.

The Know Sure Thing (KST) indicator further emphasises this duality. Weekly KST readings are bearish, reinforcing the short-term cautionary stance, but monthly KST has turned bullish, signalling that momentum could be gaining strength over the coming months. Such a divergence often precedes a trend change, but confirmation through price action and volume is essential.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, suggesting a balanced momentum without extreme conditions. Traders often look for RSI extremes to time entries or exits, so the lack of signal implies a wait-and-watch approach may be prudent.

Bollinger Bands on weekly and monthly timeframes remain mildly bearish, with the stock price closer to the lower band. This positioning typically reflects subdued volatility and potential downside risk, but also the possibility of a bounce if the lower band acts as support. The mildly bearish stance of Bollinger Bands aligns with the overall cautious tone of the technical indicators.

Volume and Market Sentiment Indicators

On-Balance Volume (OBV) readings add another layer of complexity. Weekly OBV is mildly bullish, suggesting that buying volume is slightly outweighing selling pressure in the short term. Conversely, monthly OBV remains mildly bearish, indicating that over a longer period, selling volume still dominates. This divergence between volume trends across timeframes highlights the mixed sentiment among investors.

Dow Theory signals also reflect this ambivalence. Weekly Dow Theory is mildly bullish, hinting at tentative optimism in the short term, while monthly readings remain mildly bearish, underscoring the prevailing caution over the longer term. Such conflicting signals often result in sideways price action until a clearer directional consensus emerges.

Comparative Returns and Market Context

Examining Steel Strips Wheels Ltd’s returns relative to the broader market reveals a nuanced performance. Over the past week, the stock declined by 0.62%, slightly outperforming the Sensex’s 0.99% fall. Over one month, the stock gained 0.58%, contrasting with the Sensex’s 1.20% decline, indicating some resilience in the short term.

However, year-to-date (YTD) and one-year returns tell a different story. The stock has fallen 3.63% YTD and 2.05% over the past year, while the Sensex has risen 8.36% and 8.21% respectively. This underperformance highlights challenges faced by Steel Strips Wheels Ltd amid broader market gains.

Longer-term returns paint a more favourable picture. Over three years, the stock has delivered a 19.89% return, compared to the Sensex’s 39.17%. More impressively, over five and ten years, the stock has surged 279.33% and 335.49% respectively, significantly outpacing the Sensex’s 77.34% and 226.18% gains. This demonstrates the company’s capacity for substantial wealth creation over extended periods despite recent headwinds.

Mojo Score and Analyst Ratings

Steel Strips Wheels Ltd currently holds a Mojo Score of 34.0, categorised as a Sell rating. This represents an upgrade from a previous Strong Sell grade as of 30 Dec 2025, reflecting a slight improvement in technical and fundamental outlooks. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers in the auto components sector.

The upgrade in rating suggests that while the stock remains under pressure, some stabilisation is underway, potentially offering selective opportunities for investors with a higher risk tolerance. However, the overall technical and fundamental signals counsel prudence, especially given the mixed momentum indicators and recent underperformance against the benchmark Sensex.

Investor Takeaway and Outlook

Steel Strips Wheels Ltd’s technical indicators reveal a stock at a crossroads. The shift from bearish to mildly bearish technical trend, combined with mixed signals from MACD, KST, and OBV, suggests that the stock is attempting to find a footing after a period of weakness. The absence of clear RSI signals and the mildly bearish Bollinger Bands reinforce the notion of a consolidating phase rather than a decisive trend reversal.

Investors should weigh the company’s strong long-term returns and improving Mojo rating against the current technical caution. The stock’s recent price action near ₹191, well below its 52-week high, indicates room for recovery but also vulnerability to renewed selling pressure if broader market conditions deteriorate.

Given the auto components sector’s cyclical nature and sensitivity to economic cycles, monitoring sectoral trends alongside company-specific developments will be crucial. The mildly bullish monthly KST and weekly Dow Theory signals offer some hope for a gradual uptrend, but confirmation through sustained volume and price strength is necessary before a confident bullish stance can be adopted.

In summary, Steel Strips Wheels Ltd presents a complex technical picture with cautious optimism tempered by persistent risks. Investors should remain vigilant, employing disciplined risk management and considering alternative opportunities within the sector or broader market to optimise portfolio outcomes.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →