Technical Momentum and Indicator Overview
The stock closed at ₹219.00 on 4 Feb 2026, up from the previous close of ₹207.15, marking a robust intraday high of ₹236.10 and a low of ₹215.00. Despite trading below its 52-week high of ₹279.60, the price has comfortably surpassed the 52-week low of ₹167.50, indicating a recovery trajectory.
From a technical perspective, the weekly Moving Average Convergence Divergence (MACD) has turned mildly bullish, suggesting increasing upward momentum in the near term. However, the monthly MACD remains mildly bearish, indicating that longer-term momentum has yet to fully confirm a sustained uptrend. The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory and implying that the stock is neither overbought nor oversold.
Bollinger Bands provide further clarity, with both weekly and monthly readings signalling bullishness. This suggests that price volatility is expanding on the upside, often a precursor to continued upward movement. Conversely, daily moving averages remain mildly bearish, reflecting some short-term caution among traders.
The Know Sure Thing (KST) indicator aligns with the bullish narrative, showing mild bullishness on the weekly chart and a stronger bullish signal monthly. Dow Theory assessments corroborate this, with both weekly and monthly trends mildly bullish, reinforcing the notion of a positive directional shift.
On the downside, the On-Balance Volume (OBV) indicator is mildly bearish on the weekly scale and lacks a clear trend monthly, suggesting that volume support for the price rise is moderate and not yet decisively strong.
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Comparative Performance and Market Context
Steel Strips Wheels Ltd has outperformed the broader market benchmarks significantly over multiple time horizons. The stock’s one-week return stands at 13.53%, vastly exceeding the Sensex’s 2.30% gain over the same period. Over one month, the stock appreciated by 4.06%, while the Sensex declined by 2.36%. Year-to-date, the stock has risen 12.97% compared to the Sensex’s negative 1.74% return.
Longer-term returns are even more impressive. Over one year, the stock delivered a 19.18% gain against the Sensex’s 8.49%. Over three years, the stock’s cumulative return of 52.51% outpaces the Sensex’s 37.63%. The five-year and ten-year returns are particularly striking, with Steel Strips Wheels Ltd appreciating by 259.13% and 541.29% respectively, dwarfing the Sensex’s 66.63% and 245.70% gains over the same periods.
This outperformance underscores the company’s resilience and growth potential within the Auto Components & Equipments sector, despite cyclical headwinds and broader market volatility.
Mojo Score and Rating Upgrade
MarketsMOJO’s proprietary scoring system currently assigns Steel Strips Wheels Ltd a Mojo Score of 58.0, reflecting a Hold rating. This represents an upgrade from a previous Sell rating as of 3 Feb 2026, signalling improved fundamentals and technical outlook. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers.
The upgrade is consistent with the technical trend shift from sideways to mildly bullish, supported by positive weekly MACD and Bollinger Bands signals. However, the mixed signals from daily moving averages and OBV suggest that investors should maintain a cautious stance, monitoring volume confirmation and longer-term momentum before committing to a stronger buy position.
Technical Indicators in Detail
The weekly MACD’s mildly bullish stance is driven by the MACD line crossing above the signal line, a classic momentum indicator suggesting potential for further price appreciation. The monthly MACD’s mild bearishness indicates that the longer-term trend has not yet decisively reversed, cautioning investors against over-optimism.
RSI readings near neutral levels on both weekly and monthly charts imply that the stock is not currently overextended, leaving room for upward movement without immediate risk of a pullback due to overbought conditions.
Bollinger Bands’ bullish readings on weekly and monthly charts indicate that price volatility is expanding upwards, often a sign of strengthening trend. This is complemented by the KST indicator’s bullish signals, which measure momentum across multiple timeframes and confirm the emerging positive trend.
Dow Theory’s mildly bullish readings on both weekly and monthly scales further reinforce the technical narrative, suggesting that the stock is in the early stages of an upward trend phase.
However, the mildly bearish weekly OBV reading highlights a lack of strong volume support, which is critical for sustaining rallies. The absence of a clear monthly OBV trend suggests that volume patterns remain inconclusive, warranting close observation.
Price and Moving Averages
Despite the positive momentum, daily moving averages remain mildly bearish, indicating short-term resistance and potential consolidation. This divergence between daily and weekly/monthly indicators suggests that while the medium-term outlook is improving, short-term traders may face volatility and should exercise prudence.
Investors should watch for a crossover of the stock price above key moving averages such as the 50-day and 200-day averages to confirm a more sustained bullish trend.
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Investment Outlook and Considerations
Steel Strips Wheels Ltd’s recent technical developments and price momentum suggest a cautiously optimistic outlook. The stock’s outperformance relative to the Sensex across multiple timeframes highlights its potential as a growth candidate within the Auto Components & Equipments sector.
However, mixed signals from volume-based indicators and short-term moving averages counsel a measured approach. Investors should monitor upcoming earnings releases, sectoral trends, and broader market conditions to validate the sustainability of the current bullish momentum.
Given the current Hold rating and Mojo Score of 58.0, the stock may appeal to investors seeking exposure to a fundamentally sound company with improving technicals but who prefer to avoid excessive risk at this stage.
Continued monitoring of weekly MACD, Bollinger Bands, and Dow Theory signals will be essential to identify a potential upgrade to a Buy rating should volume and price action confirm the emerging trend.
Summary
In summary, Steel Strips Wheels Ltd is transitioning from a sideways to a mildly bullish technical phase, supported by positive weekly momentum indicators and strong relative returns versus the Sensex. While short-term caution is warranted due to mixed daily signals and volume trends, the medium-term outlook is improving, making the stock a noteworthy candidate for investors tracking the Auto Components & Equipments sector.
With a recent upgrade from Sell to Hold by MarketsMOJO and a Mojo Score of 58.0, the stock is positioned for potential further gains, provided technical confirmations materialise in the coming weeks.
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