Steel Strips Wheels Ltd Technical Momentum Shifts Amid Mixed Indicator Signals

Technical Trend Overview and Price Movement

As of 23 Feb 2026, Steel Strips Wheels Ltd (stock code 183917) closed at ₹219.85, marking a modest intraday gain of 0.64% from the previous close of ₹218.45. The stock traded within a range of ₹213.55 to ₹222.75 during the session, remaining well below its 52-week high of ₹279.60 but comfortably above the 52-week low of ₹167.50. This price action reflects a consolidation phase with a slight upward bias, consistent with the weekly technical trend upgrade from sideways to mildly bullish.

The stock’s performance relative to the broader market has been impressive over multiple time horizons. Year-to-date, Steel Strips Wheels Ltd has delivered a return of 13.41%, significantly outperforming the Sensex’s decline of 2.82%. Over the past year, the stock has appreciated by 22.04%, more than double the Sensex’s 9.35% gain. Longer-term returns are even more striking, with a five-year gain of 240.04% compared to the Sensex’s 62.73%, and a ten-year return of 638.99% versus the Sensex’s 249.29%. These figures underscore the stock’s strong fundamental and technical resilience despite recent volatility.

Mixed Signals from Key Technical Indicators

Examining the technical indicators in detail reveals a complex picture. The Moving Average Convergence Divergence (MACD) indicator presents a divergence between weekly and monthly timeframes. On a weekly basis, the MACD is mildly bullish, signalling potential upward momentum in the near term. Conversely, the monthly MACD remains mildly bearish, suggesting caution for longer-term investors as the broader trend may still be under pressure.

The Relative Strength Index (RSI) offers little directional guidance, with both weekly and monthly RSI readings showing no clear signal. This neutral stance indicates that the stock is neither overbought nor oversold, leaving room for either a continuation of the current trend or a reversal depending on forthcoming market catalysts.

Bollinger Bands provide a more optimistic outlook. Weekly Bollinger Bands are mildly bullish, indicating that price volatility is supporting a gradual upward move. Monthly Bollinger Bands are outright bullish, reinforcing the possibility of sustained strength over the coming months. This is complemented by the Know Sure Thing (KST) oscillator, which is mildly bullish on a weekly basis and bullish monthly, further supporting the case for positive momentum building up.

However, daily moving averages paint a more cautious picture, currently mildly bearish. This suggests that short-term price action is under some pressure, possibly due to profit-taking or sector-specific headwinds. The Dow Theory analysis aligns with the weekly and monthly mildly bullish trend, indicating that the broader market structure is supportive of a positive outlook, albeit with some volatility expected.

On-Balance Volume (OBV) readings show no clear trend on either weekly or monthly charts, implying that volume is not currently confirming the price moves. This lack of volume confirmation warrants careful monitoring, as sustained price advances typically require supportive volume to validate the trend.

Mojo Score and Grade Revision Reflect Cautious Sentiment

MarketsMOJO’s proprietary scoring system currently assigns Steel Strips Wheels Ltd a Mojo Score of 48.0, reflecting a cautious stance. The Mojo Grade was downgraded from Hold to Sell on 16 Feb 2026, signalling a deterioration in the stock’s overall technical and fundamental outlook. The downgrade is likely influenced by the mixed technical signals and the mildly bearish daily moving averages, despite the encouraging weekly and monthly trends.

The company’s Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to its sector peers in Auto Components & Equipments. This grade suggests moderate liquidity and investor interest but also highlights the need for careful stock selection within this segment.

Sector Context and Comparative Performance

Within the Auto Components & Equipments sector, Steel Strips Wheels Ltd’s technical momentum shift is noteworthy. The sector has experienced varied performance amid global supply chain challenges and fluctuating demand in the automotive industry. The stock’s ability to outperform the Sensex consistently over multiple timeframes, especially the 5-year and 10-year horizons, underscores its relative strength and resilience.

However, the current technical indicators suggest that investors should remain vigilant. The mildly bearish daily moving averages and the monthly MACD’s negative bias imply that short-term corrections or consolidation phases could occur before any sustained rally. The absence of volume confirmation via OBV further emphasises the need for caution.

Investment Implications and Outlook

For investors, the evolving technical landscape of Steel Strips Wheels Ltd presents both opportunities and risks. The weekly and monthly bullish signals from MACD, Bollinger Bands, KST, and Dow Theory suggest that the stock could be poised for a gradual upward trajectory in the medium term. Yet, the mixed signals from daily moving averages and neutral RSI readings indicate that momentum is not yet fully confirmed.

Given the stock’s strong historical returns and current technical momentum shift, a selective approach may be warranted. Investors with a medium to long-term horizon might consider accumulating on dips, while short-term traders should monitor key support levels near ₹213 and resistance around ₹223 to ₹225 for potential breakout or reversal signals.

Conclusion: A Nuanced Technical Picture Demands Careful Monitoring

Steel Strips Wheels Ltd’s recent technical parameter changes highlight a shift towards mild bullishness on weekly and monthly charts, supported by positive momentum indicators such as Bollinger Bands and KST. However, the presence of bearish signals on daily moving averages and the monthly MACD, combined with neutral RSI and lack of volume confirmation, suggest that the stock is at a critical juncture.

Investors should weigh the stock’s impressive long-term returns and sector positioning against the current mixed technical signals. A balanced approach, incorporating both fundamental analysis and technical monitoring, will be essential to navigate the stock’s near-term volatility and capitalise on its potential upside.

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