Technical Trend Overview and Price Momentum
The stock closed at ₹1,226.20 on 30 Jan 2026, up from the previous close of ₹1,160.05, marking a significant intraday gain with a high of ₹1,248.20 and a low of ₹1,160.10. This 5.7% day change is a notable rebound, yet the broader technical trend remains mildly bearish, a downgrade from a previously more negative outlook. The 52-week price range remains wide, with a high of ₹2,648.00 and a low of ₹1,110.20, underscoring the stock’s volatility and the pressure it has faced over the past year.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD is mildly bullish, suggesting some positive momentum building in the short term. However, monthly MACD readings remain inconclusive, indicating that longer-term momentum has yet to decisively turn positive. This divergence between weekly and monthly MACD signals highlights the stock’s current technical uncertainty.
RSI and Overbought/Oversold Conditions
The Relative Strength Index (RSI) on both weekly and monthly charts shows no clear signal, hovering in neutral territory. This absence of an overbought or oversold condition suggests that the stock is neither excessively bought nor sold, leaving room for directional movement but no immediate extremes that typically precede sharp reversals.
Moving Averages and Bollinger Bands
Daily moving averages remain bearish, indicating that the stock price is trading below key short-term averages, which often acts as resistance. Meanwhile, Bollinger Bands on weekly and monthly charts are mildly bearish, reflecting a contraction in price volatility but with a downward bias. This combination points to a cautious environment where price gains may be capped unless accompanied by stronger volume or fundamental catalysts.
Other Technical Signals: KST, Dow Theory, and OBV
The Know Sure Thing (KST) indicator on a weekly basis is mildly bullish, reinforcing the short-term momentum suggested by the MACD. However, Dow Theory assessments remain bearish on both weekly and monthly timeframes, signalling that the broader trend is still under pressure. The On-Balance Volume (OBV) indicator adds complexity: weekly OBV is mildly bearish, indicating selling pressure, but monthly OBV is mildly bullish, suggesting accumulation over a longer horizon.
Fundamental and Market Context
Sundaram Clayton operates within the Auto Components & Equipments sector, which has faced headwinds amid global supply chain disruptions and fluctuating demand. The company’s current Mojo Score stands at 17.0 with a Mojo Grade of Strong Sell, downgraded from Sell on 25 Apr 2025. This reflects deteriorating fundamentals and market sentiment. The Market Cap Grade is a low 3, indicating limited market capitalisation strength relative to peers.
Comparative Returns and Sector Performance
Examining returns relative to the Sensex reveals a stark underperformance. Over the past year, Sundaram Clayton’s stock has declined by 47.68%, while the Sensex gained 7.88%. Year-to-date, the stock has marginally risen by 0.31%, outperforming the Sensex’s negative 3.11% return. Over one month, the stock gained 0.92% compared to the Sensex’s 2.51% decline, indicating some short-term resilience. However, the long-term outlook remains bleak, with no available data for three, five, and ten-year returns for the stock, while the Sensex has delivered robust gains of 39.16%, 78.38%, and 231.98% respectively over those periods.
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Technical Ratings and Market Sentiment
The downgrade to a Strong Sell Mojo Grade reflects a consensus of deteriorating technical and fundamental conditions. The bearish daily moving averages and Dow Theory signals suggest that the stock remains vulnerable to further downside. However, the mildly bullish weekly MACD and KST indicators hint at a potential short-term relief rally or consolidation phase. Investors should note the divergence between short-term momentum and longer-term trend indicators, which often precedes volatile price action.
Volume and Price Action Insights
On-Balance Volume (OBV) data reveals a split view: weekly OBV is mildly bearish, indicating that recent price gains may not be strongly supported by volume, while monthly OBV’s mild bullishness suggests some accumulation by longer-term investors. This volume-price divergence warrants close monitoring, as a sustained increase in volume accompanying price gains could signal a more durable trend reversal.
Sectoral and Industry Considerations
Within the Auto Components & Equipments sector, Sundaram Clayton faces competitive pressures and cyclical demand fluctuations. The sector’s performance is closely tied to automotive production trends and raw material cost volatility. Given the company’s current technical and fundamental challenges, investors may prefer to evaluate peer companies with stronger momentum and fundamentals.
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Investor Takeaway and Outlook
While Sundaram Clayton Ltd’s recent price surge offers a glimmer of hope, the overall technical landscape remains cautious. The mixed signals from MACD, RSI, moving averages, and volume indicators suggest that the stock is at a critical juncture. Investors should weigh the short-term mildly bullish momentum against the prevailing bearish trends and fundamental weaknesses before committing fresh capital.
Given the company’s Strong Sell Mojo Grade and underperformance relative to the Sensex, a conservative approach is advisable. Monitoring for confirmation of trend reversals through sustained volume increases and improved moving average alignments will be key to identifying a durable recovery.
Summary of Key Technical Metrics:
- Current Price: ₹1,226.20 (30 Jan 2026)
- Day Change: +5.7%
- 52-Week Range: ₹1,110.20 – ₹2,648.00
- MACD Weekly: Mildly Bullish
- MACD Monthly: Neutral
- RSI Weekly & Monthly: No Signal
- Bollinger Bands Weekly & Monthly: Mildly Bearish
- Moving Averages Daily: Bearish
- KST Weekly: Mildly Bullish
- Dow Theory Weekly & Monthly: Bearish
- OBV Weekly: Mildly Bearish; Monthly: Mildly Bullish
- Mojo Score: 17.0 (Strong Sell)
- Market Cap Grade: 3
Investors should continue to monitor Sundaram Clayton’s technical indicators closely, particularly for any sustained shifts in volume and moving averages that could herald a more definitive trend change.
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