Technical Trend Shift and Momentum Analysis
Sundram Fasteners Ltd’s technical trend has shifted from mildly bearish to outright bearish, signalling increased downside pressure. The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, remains bearish on both weekly and monthly timeframes, confirming sustained negative momentum. The weekly and monthly MACD lines continue to diverge below their signal lines, indicating that selling pressure is prevailing over buying interest.
The Relative Strength Index (RSI), however, remains neutral with no clear signal on weekly or monthly charts. This suggests that while momentum is weak, the stock is not yet in oversold territory, leaving room for further downside before a potential technical rebound might occur.
Daily moving averages reinforce the bearish outlook, with the stock price currently trading below its short-term and long-term averages. This alignment typically signals a continuation of the downward trend, as investors remain cautious amid uncertain market conditions.
Price Action and Volatility Indicators
On 9 Jan 2026, Sundram Fasteners closed at ₹935.40, down from the previous close of ₹951.35. The intraday range was between ₹931.05 and ₹952.10, reflecting moderate volatility. The stock remains well below its 52-week high of ₹1,131.95, while still above its 52-week low of ₹832.25, indicating a wide trading band over the past year.
Bollinger Bands, which measure price volatility and potential reversal points, are bearish on the weekly chart and mildly bearish on the monthly chart. The stock price is currently near the lower band on the weekly timeframe, suggesting increased selling pressure but also hinting at a possible support zone if buyers step in.
Just made the cut! This Mid Cap from the Heavy Electrical Equipment sector entered our elite Top 1% list recently. Discover it before the crowd catches on!
- - Top-rated across platform
- - Strong price momentum
- - Near-term growth potential
Additional Momentum Indicators and Volume Analysis
The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change calculations to identify momentum shifts, is bearish on both weekly and monthly charts. This further corroborates the negative momentum trend and suggests that the stock may continue to face selling pressure in the near term.
On-Balance Volume (OBV) presents a mixed picture. While the weekly OBV is mildly bearish, indicating that volume is not strongly supporting price advances, the monthly OBV is bullish. This divergence suggests that longer-term accumulation may be occurring despite short-term selling, a nuance that investors should monitor closely.
Dow Theory analysis shows no clear trend on weekly or monthly timeframes, implying that the stock has yet to establish a definitive directional movement according to this classical market theory.
Comparative Performance Versus Sensex
When compared with the benchmark Sensex, Sundram Fasteners Ltd’s returns have been mixed. Over the past week, the stock declined by 1.16%, closely mirroring the Sensex’s 1.18% fall. Over the last month, however, Sundram Fasteners gained 1.12%, outperforming the Sensex’s 1.08% decline. Year-to-date returns are flat at 0.07%, while the Sensex has fallen 1.22%.
Longer-term performance reveals challenges for the stock. Over the past year, Sundram Fasteners has declined 10.53%, contrasting with the Sensex’s 7.72% gain. Over three years, the stock is down 5.92%, while the Sensex surged 40.53%. Despite this, the five-year and ten-year returns for Sundram Fasteners remain robust at 67.88% and 459.78% respectively, outperforming the Sensex’s 72.56% and 237.61% gains over the same periods. This indicates strong historical growth but recent underperformance relative to the broader market.
Sundram Fasteners Ltd or something better? Our SwitchER feature analyzes this small-cap Auto Components & Equipments stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Mojo Score and Grade Implications
Sundram Fasteners currently holds a Mojo Score of 38.0, reflecting weak technical and fundamental momentum. The Mojo Grade was downgraded from Hold to Sell on 24 Nov 2025, signalling a deteriorating outlook. The company’s Market Cap Grade stands at 3, indicating a small-cap classification within the Auto Components & Equipments sector.
This downgrade aligns with the bearish technical indicators and recent price action, suggesting that investors should exercise caution. The combination of negative MACD, bearish moving averages, and subdued RSI signals a lack of upward momentum, while the mixed volume indicators imply uncertainty about the stock’s near-term direction.
Outlook and Investor Considerations
Given the current technical landscape, Sundram Fasteners Ltd appears to be in a consolidation phase with a bearish bias. The stock’s failure to sustain levels above its moving averages and the persistent negative MACD readings suggest that further downside cannot be ruled out. However, the neutral RSI and bullish monthly OBV hint at potential accumulation by long-term investors, which could provide support if market conditions improve.
Investors should closely monitor key support levels near ₹830-₹840, which correspond to the 52-week low range. A sustained break below this zone could trigger accelerated selling. Conversely, a rebound above the daily moving averages and a positive MACD crossover would be required to signal a technical turnaround.
In the context of the broader Auto Components & Equipments sector, Sundram Fasteners’ recent underperformance relative to the Sensex and sector peers warrants a cautious stance. The company’s historical long-term returns remain impressive, but the current technical signals advise prudence for near-term trading strategies.
Summary
Sundram Fasteners Ltd is currently navigating a challenging technical environment marked by bearish momentum across multiple indicators. The downgrade to a Sell grade by MarketsMOJO reflects this shift, underscoring the need for investors to reassess their positions. While longer-term fundamentals and historical returns remain strong, the immediate technical outlook suggests limited upside and potential for further declines. Close attention to volume trends, moving averages, and momentum oscillators will be critical in determining the stock’s next directional move.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
