Supreme Industries Ltd Sees Mixed Technical Signals Amid Price Momentum Shift

Price Momentum and Recent Market Performance

On 23 January 2026, Supreme Industries Ltd closed at ₹3,484.90, marking a 4.06% increase from the previous close of ₹3,348.80. The stock traded within a range of ₹3,350.00 to ₹3,500.00 during the day, reflecting heightened volatility. While the 52-week high stands at ₹4,740.00 and the low at ₹3,020.00, the current price remains closer to the lower end of this range, indicating room for potential recovery or further downside depending on market conditions.

Comparatively, the stock has outperformed the Sensex over the past month and year-to-date periods, with returns of 4.22% and 3.86% respectively, while the Sensex declined by 3.81% and 3.42% over the same intervals. However, over the one-year horizon, Supreme Industries has underperformed, delivering a negative return of 10.33% against the Sensex’s positive 7.73%. Longer-term performance remains robust, with five-year and ten-year returns of 102.48% and 421.46%, significantly outpacing the Sensex’s 68.39% and 236.83% respectively.

Technical Trend Shift: From Bearish to Mildly Bearish

MarketsMOJO’s technical assessment indicates a shift in the overall trend from bearish to mildly bearish. This nuanced change suggests that while the downtrend has moderated, the stock has yet to establish a clear bullish trajectory. The daily moving averages remain mildly bearish, signalling that short-term momentum is still under pressure despite recent gains.

The weekly and monthly technical indicators present a mixed outlook. The Moving Average Convergence Divergence (MACD) is mildly bullish on the weekly chart but bearish on the monthly, highlighting short-term strength that is not yet confirmed over a longer timeframe. Similarly, the Relative Strength Index (RSI) shows no clear signal on either weekly or monthly charts, indicating a lack of strong momentum in either direction.

Bollinger Bands and Momentum Oscillators

Bollinger Bands analysis reveals bearish signals on the weekly chart and mildly bearish on the monthly, suggesting that price volatility remains skewed towards the downside in the medium term. This is consistent with the mildly bearish daily moving averages and the overall cautious technical stance.

The Know Sure Thing (KST) oscillator, a momentum indicator that aggregates multiple rate-of-change calculations, remains bearish on both weekly and monthly timeframes. This reinforces the view that the stock’s momentum is subdued and that any rallies may face resistance without a fundamental catalyst.

Volume and Dow Theory Insights

On-Balance Volume (OBV) presents a contrasting picture: mildly bullish on the weekly chart but mildly bearish on the monthly. This divergence suggests that while recent trading volumes support short-term price gains, the longer-term volume trend does not confirm sustained buying interest.

Dow Theory analysis aligns with the mildly bearish technical trend, showing mild bearishness on both weekly and monthly charts. This indicates that the broader market sentiment for Supreme Industries remains cautious, with no definitive confirmation of a sustained uptrend.

Mojo Score and Rating Update

MarketsMOJO has downgraded Supreme Industries Ltd from a Hold to a Sell rating as of 23 October 2025, reflecting the deteriorating technical and fundamental outlook. The current Mojo Score stands at 34.0, a level that signals weak momentum and limited upside potential. The Market Cap Grade is 2, indicating a relatively modest market capitalisation compared to peers in the plastic products industrial sector.

Investors should note that this downgrade is consistent with the mixed technical signals and the stock’s recent underperformance relative to the broader market over the one-year period.

Long-Term Performance Context

Despite recent challenges, Supreme Industries has demonstrated strong long-term growth, with a 10-year return of 421.46%, significantly outperforming the Sensex’s 236.83%. This track record highlights the company’s resilience and ability to generate shareholder value over extended periods, although recent technical signals suggest caution in the near term.

Investor Takeaways and Outlook

Supreme Industries Ltd’s current technical profile suggests a cautious approach for investors. The mildly bearish daily moving averages and bearish monthly MACD indicate that the stock may face resistance in establishing a sustained uptrend. The absence of clear RSI signals and the mixed volume indicators further complicate the outlook.

However, the weekly MACD’s mildly bullish stance and the stock’s recent outperformance relative to the Sensex over the past month and year-to-date periods provide some grounds for optimism in the short term. Investors should monitor key support levels near ₹3,350 and resistance around ₹3,500 closely, as these will be critical in determining the next directional move.

Given the downgrade to a Sell rating and the modest Mojo Score, it is advisable for investors to consider portfolio diversification and evaluate alternative opportunities within the plastic products sector or broader industrial space. The stock’s long-term growth potential remains intact, but near-term technical headwinds warrant prudence.

In summary, Supreme Industries Ltd is at a technical crossroads, with mixed signals reflecting a transition phase in price momentum. Market participants should weigh these factors carefully alongside fundamental developments and sector trends before making investment decisions.

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