Sundram Fasteners Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview and Price Movement

The stock closed at ₹942.75 on 12 Feb 2026, up from the previous close of ₹928.25, marking a daily increase of 1.56%. The intraday range was relatively narrow, with a low of ₹928.85 and a high of ₹947.20. Over the past 52 weeks, Sundram Fasteners has traded between ₹832.25 and ₹1,076.90, indicating a significant volatility band of approximately 29.4%. The current price sits roughly 12.4% below its 52-week high, signalling some retracement from recent peaks.

Momentum Indicators: MACD and RSI Analysis

The Moving Average Convergence Divergence (MACD) presents a mixed picture. On a weekly basis, the MACD is mildly bullish, suggesting a tentative upward momentum in the near term. However, the monthly MACD remains bearish, indicating that the longer-term trend has yet to confirm a sustained recovery. This divergence between weekly and monthly MACD readings highlights the stock’s current phase of consolidation and potential indecision among investors.

The Relative Strength Index (RSI) on both weekly and monthly charts shows no definitive signal, hovering in neutral territory. This absence of overbought or oversold conditions suggests that the stock is not currently experiencing extreme price pressures, which could imply a period of sideways movement or gradual trend formation.

Moving Averages and Bollinger Bands: Signs of Mild Bearishness

Daily moving averages indicate a mildly bearish trend, with short-term averages likely positioned below longer-term averages, signalling some downward pressure. Complementing this, Bollinger Bands on the weekly chart also reflect a mildly bearish stance, while the monthly Bollinger Bands confirm a bearish outlook. The contraction or expansion of these bands can provide clues about volatility; in this case, the bearish signals suggest potential for further downside or at least limited upside in the medium term.

Additional Technical Indicators: KST, OBV, and Dow Theory

The Know Sure Thing (KST) indicator aligns with the MACD, showing mild bullishness on the weekly timeframe but bearishness monthly. This reinforces the notion of short-term optimism tempered by longer-term caution. Meanwhile, the On-Balance Volume (OBV) indicator is mildly bearish on both weekly and monthly charts, indicating that volume trends do not currently support a strong price rally.

Dow Theory analysis reveals no clear trend on either weekly or monthly scales, suggesting that the stock is in a phase of uncertainty without a definitive directional bias. This lack of trend confirmation further emphasises the need for investors to monitor upcoming price action closely.

Comparative Returns: Sundram Fasteners vs Sensex

Examining Sundram Fasteners’ returns relative to the benchmark Sensex reveals a mixed performance. Over the past week, the stock declined by 0.66%, underperforming the Sensex’s 0.50% gain. However, over the last month, Sundram Fasteners outpaced the Sensex with a 1.46% return compared to the index’s 0.79%. Year-to-date, the stock has gained 0.86%, while the Sensex has declined by 1.16%, indicating relative resilience in the current calendar year.

Longer-term comparisons show challenges: over one year, Sundram Fasteners has fallen 5.35%, contrasting with the Sensex’s robust 10.41% gain. Over three years, the stock is down 5.77%, while the Sensex surged 38.81%. Even over five years, Sundram Fasteners’ 52.63% return trails the Sensex’s 63.46%. Notably, the ten-year return for Sundram Fasteners is an impressive 543.74%, significantly outperforming the Sensex’s 267.00%, reflecting the company’s strong historical growth trajectory despite recent headwinds.

Mojo Score and Rating Update

MarketsMOJO’s latest assessment assigns Sundram Fasteners a Mojo Score of 44.0, categorising it as a Sell. This represents a downgrade from the previous Hold rating issued on 24 Nov 2025. The downgrade reflects the deteriorating technical parameters and cautious outlook from a fundamental perspective. The company’s Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to its sector peers.

This rating change signals that investors should exercise prudence, as the stock’s technical and fundamental indicators suggest limited near-term upside and potential downside risks.

Sector Context and Industry Positioning

Sundram Fasteners operates within the Auto Components & Equipments sector, a segment that has faced cyclical pressures due to fluctuating demand in the automotive industry and supply chain disruptions. The sector’s performance often correlates with broader economic cycles and automotive production trends. Sundram Fasteners’ mixed technical signals may partly reflect these external factors, alongside company-specific developments.

Investors should consider the company’s positioning within the sector and monitor industry trends, including raw material costs, export demand, and regulatory changes, which could influence future price momentum.

Investor Takeaway and Outlook

The technical landscape for Sundram Fasteners Ltd is characterised by a delicate balance between short-term bullish signals and longer-term bearish pressures. The mildly bullish weekly MACD and KST indicators offer some optimism for near-term price support, but the prevailing monthly bearish signals and mildly bearish moving averages counsel caution.

Given the absence of strong RSI signals and the neutral Dow Theory trend status, the stock appears to be in a consolidation phase. Investors should watch for a decisive breakout above the 52-week high of ₹1,076.90 or a breakdown below the 52-week low of ₹832.25 to confirm a new directional trend.

Fundamentally, the downgrade to a Sell rating by MarketsMOJO, combined with the modest Mojo Score of 44.0, suggests that the stock may face headwinds in the near term. However, the company’s impressive ten-year return of 543.74% underscores its long-term growth potential, which may appeal to patient investors willing to navigate current volatility.

In summary, Sundram Fasteners Ltd currently presents a mixed technical and fundamental profile. Traders may consider short-term tactical positions aligned with weekly bullish signals, while long-term investors should remain vigilant for confirmation of trend reversals or further deterioration.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →