Steel Strips Wheels Ltd Shows Mixed Technical Signals Amid Sideways Momentum

Technical Trend Overview and Price Movement

As of 3 February 2026, Steel Strips Wheels Ltd is trading at ₹206.90, slightly above its previous close of ₹206.55. The stock’s 52-week high stands at ₹279.60, while the low is ₹167.50, indicating a wide trading range over the past year. Today’s intraday range has been between ₹202.50 and ₹224.75, reflecting some volatility but no decisive directional breakout.

The technical trend has shifted from mildly bearish to sideways, signalling a pause in the downward momentum that characterised recent months. This transition suggests that the stock may be consolidating before its next significant move, though the direction remains uncertain.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced view. On a weekly basis, the MACD is mildly bullish, indicating that short-term momentum is improving. However, the monthly MACD remains mildly bearish, reflecting longer-term caution among investors. This divergence between weekly and monthly MACD readings suggests that while near-term price action is gaining strength, the broader trend has yet to confirm a sustained uptrend.

Complementing this, the Know Sure Thing (KST) indicator is mildly bullish on a weekly scale and bullish on a monthly scale, reinforcing the notion of improving momentum over the medium term. This positive KST reading could attract momentum traders looking for early signs of a trend reversal.

Relative Strength Index (RSI) and Bollinger Bands

The RSI readings on both weekly and monthly charts currently show no clear signal, hovering in neutral territory. This lack of extreme RSI values indicates that the stock is neither overbought nor oversold, consistent with the sideways trend observed.

Bollinger Bands provide a slightly more mixed picture. On the weekly chart, the bands are bullish, suggesting that price volatility is expanding upwards and the stock may be poised for a breakout. Conversely, the monthly Bollinger Bands remain mildly bearish, indicating that longer-term volatility and price compression still favour caution.

Moving Averages and On-Balance Volume (OBV)

Daily moving averages are mildly bearish, signalling that short-term price averages remain below longer-term averages. This technical setup often acts as resistance to upward price moves and may limit near-term gains.

On-Balance Volume (OBV) analysis shows a mildly bearish trend on the weekly chart, suggesting that volume flow is not strongly supporting price advances. The monthly OBV shows no clear trend, indicating a lack of conviction among traders over the longer term.

Dow Theory and Broader Market Context

According to Dow Theory assessments, Steel Strips Wheels Ltd is mildly bullish on both weekly and monthly timeframes. This suggests that the stock is showing early signs of an upward trend in line with broader market cycles, although the strength of this trend remains moderate.

Comparing the stock’s returns with the Sensex over various periods highlights its relative outperformance. Over the past week, the stock surged 15.26%, vastly outperforming the Sensex’s 0.16% gain. Over one month, the stock declined 1.69%, but this was less severe than the Sensex’s 4.78% drop. Year-to-date, Steel Strips Wheels Ltd has gained 6.73%, while the Sensex fell 4.17%. Over one year, the stock’s 6.43% return slightly exceeds the Sensex’s 5.37%.

Longer-term returns are even more impressive, with a three-year gain of 41.66% versus the Sensex’s 36.26%, a five-year return of 243.66% compared to 64.00% for the benchmark, and a remarkable ten-year return of 486.29% against the Sensex’s 232.80%. These figures underscore the stock’s strong historical performance despite recent technical challenges.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Steel Strips Wheels Ltd a Mojo Score of 48.0, reflecting a cautious stance. The Mojo Grade has been upgraded from Strong Sell to Sell as of 20 January 2026, signalling a slight improvement in outlook but still advising prudence. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers in the Auto Components & Equipments sector.

This rating adjustment aligns with the technical trend shift from mildly bearish to sideways, suggesting that while the stock is stabilising, it has yet to demonstrate a convincing bullish breakout.

Investor Takeaway and Outlook

Steel Strips Wheels Ltd currently presents a mixed technical picture. The shift from a mildly bearish to a sideways trend indicates a period of consolidation, with some momentum indicators like weekly MACD and KST turning mildly bullish. However, the monthly MACD and Bollinger Bands remain cautious, and daily moving averages continue to exert mild bearish pressure.

Volume trends, as indicated by OBV, do not strongly support a sustained rally, suggesting that investors should remain vigilant for confirmation of a breakout before committing significant capital. The neutral RSI readings further reinforce the absence of extreme price conditions, implying that the stock is in a wait-and-watch phase.

Given the stock’s strong long-term returns relative to the Sensex, investors with a higher risk tolerance may consider accumulating on dips, but the current technical signals advise a measured approach. The recent upgrade from Strong Sell to Sell by MarketsMOJO reflects this cautious optimism but stops short of recommending a full bullish stance.

In summary, Steel Strips Wheels Ltd is at a technical crossroads. The coming weeks will be critical in determining whether the stock can build on its mild bullish momentum or revert to a bearish trajectory. Investors should closely monitor key technical indicators and volume patterns for clearer directional cues.

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