Technical Trend Overview
The latest technical assessment reveals that Swaraj Engines’ overall trend has deteriorated from mildly bearish to outright bearish. This shift is underscored by a combination of moving averages, momentum oscillators, and volume-based indicators that collectively point to weakening price momentum.
On the daily chart, moving averages have turned bearish, indicating that the stock’s short-term price action is under pressure. The current price of ₹3,566.80 is below key moving averages, reinforcing the negative momentum. The stock’s previous close was ₹3,593.45, marking a day change of -0.74%, reflecting the ongoing selling pressure.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a mixed but predominantly bearish picture. On a weekly basis, the MACD is firmly bearish, signalling that the medium-term momentum is weakening. The monthly MACD remains mildly bearish, suggesting that while the longer-term trend is not yet decisively negative, it is losing strength.
The Know Sure Thing (KST) indicator aligns with this view, showing bearish momentum on the weekly scale and mildly bearish readings monthly. These momentum oscillators collectively indicate that the stock’s price momentum is deteriorating, with sellers gaining the upper hand in recent weeks.
RSI and Bollinger Bands Analysis
The Relative Strength Index (RSI) currently offers no clear signal on both weekly and monthly charts, hovering in neutral territory. This suggests that the stock is neither overbought nor oversold, leaving room for further downside or consolidation depending on market developments.
Bollinger Bands on the weekly timeframe are bearish, with the price trending near the lower band, indicating increased volatility and downward pressure. Conversely, the monthly Bollinger Bands show a sideways pattern, reflecting a lack of strong directional movement over the longer term.
Volume and Dow Theory Signals
Volume-based indicators such as On-Balance Volume (OBV) show no definitive trend on either weekly or monthly charts, implying that volume is not confirming the price moves decisively. This lack of volume confirmation often signals caution, as price declines may not be strongly supported by selling intensity.
Interestingly, Dow Theory readings are mildly bullish on the weekly scale, suggesting some short-term optimism among market participants. However, the monthly Dow Theory shows no clear trend, indicating uncertainty in the broader market context for Swaraj Engines.
Price Range and Historical Context
The stock’s current price of ₹3,566.80 is significantly below its 52-week high of ₹4,725.95 but comfortably above the 52-week low of ₹2,530.00. This wide trading range highlights the stock’s volatility over the past year. Today’s intraday range between ₹3,545.10 and ₹3,600.30 further emphasises the ongoing price fluctuations amid bearish technical signals.
Comparative Returns Versus Sensex
Despite recent technical weakness, Swaraj Engines has delivered impressive returns over longer periods compared to the Sensex. Year-to-date, the stock is down by 0.57%, slightly outperforming the Sensex’s decline of 2.28%. Over one year, the stock has surged 24.93%, significantly outpacing the Sensex’s 9.66% gain.
Longer-term returns are even more compelling, with three-year gains of 125.67% versus the Sensex’s 35.81%, five-year returns of 178.04% against 59.83%, and a remarkable ten-year appreciation of 348.09% compared to the Sensex’s 259.08%. These figures underscore the company’s strong fundamental growth despite recent technical setbacks.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
Mojo Score and Rating Changes
Swaraj Engines currently holds a Mojo Score of 47.0, which places it in the 'Sell' category, a downgrade from its previous 'Hold' rating as of 16 Feb 2026. This downgrade reflects the deteriorating technical parameters and the cautious outlook from MarketsMOJO’s quantitative framework.
The company’s Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to its peers in the Compressors, Pumps & Diesel Engines sector. This grade, combined with the technical downgrade, suggests that investors should weigh the risks carefully before initiating new positions.
Sector and Industry Context
Operating within the Compressors, Pumps & Diesel Engines industry, Swaraj Engines faces sector-specific challenges including fluctuating raw material costs and cyclical demand patterns. The sector’s overall momentum has been mixed, with some companies showing resilience while others struggle with margin pressures.
Given the bearish technical signals for Swaraj Engines, investors may want to consider the broader sector trends and compare the company’s technical and fundamental metrics against peers before making allocation decisions.
Outlook and Investor Considerations
While the long-term fundamentals and historical returns of Swaraj Engines remain robust, the current technical landscape advises caution. The bearish daily moving averages, weekly MACD, and Bollinger Bands suggest that the stock could face further downside or consolidation in the near term.
Investors should monitor key support levels near ₹3,500 and watch for any reversal signals in momentum indicators such as the RSI or MACD. A sustained break below recent lows could confirm a deeper correction, while any improvement in volume and positive divergence in momentum oscillators might signal a potential recovery.
Swaraj Engines Ltd or something better? Our SwitchER feature analyzes this small-cap Compressors, Pumps & Diesel Engines stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Conclusion
Swaraj Engines Ltd’s recent technical parameter changes highlight a shift towards bearish momentum, with multiple indicators signalling caution for investors. Despite the company’s impressive long-term returns and solid fundamentals, the current technical environment suggests a period of consolidation or correction may be underway.
Investors should carefully monitor momentum oscillators, moving averages, and volume trends to gauge the stock’s next directional move. Those with a long-term investment horizon may view current weakness as a potential entry point, while short-term traders might prefer to await clearer bullish signals before committing capital.
Overall, the downgrade to a 'Sell' Mojo Grade reflects the need for prudence amid mixed technical signals and sector uncertainties.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
