Current Price Action and Market Context
As of 8 January 2026, Swaraj Engines Ltd closed at ₹3,715.00, up from the previous close of ₹3,683.25. The stock traded within a range of ₹3,683.30 to ₹3,784.00 during the day, remaining well below its 52-week high of ₹4,725.95 but comfortably above its 52-week low of ₹2,530.00. This price action reflects a moderate recovery phase following a period of volatility.
Comparatively, the stock has outperformed the Sensex over multiple time horizons. Notably, it delivered a 21.7% return over the past year against the Sensex’s 8.7%, and an impressive 134.6% gain over three years compared to the Sensex’s 41.8%. This outperformance underscores the company’s resilience and growth potential within the Compressors, Pumps & Diesel Engines sector.
Technical Trend Evolution
The technical trend for Swaraj Engines has shifted from a clearly bearish stance to a mildly bearish one. This subtle improvement suggests that while downward pressure remains, the intensity of selling momentum has eased. The daily moving averages continue to signal bearishness, indicating that short-term price averages remain below longer-term averages, a classic sign of downward momentum.
However, the weekly and monthly indicators provide a more nuanced view. The Moving Average Convergence Divergence (MACD) remains bearish on the weekly chart but has softened to mildly bearish on the monthly timeframe. This divergence suggests that while short-term momentum is weak, longer-term momentum may be stabilising.
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Momentum Indicators: MACD, RSI, and KST
The MACD indicator, a key momentum oscillator, remains bearish on the weekly chart, signalling that the short-term trend is still under pressure. However, the monthly MACD has improved to mildly bearish, indicating a potential easing of downward momentum over a longer horizon.
The Relative Strength Index (RSI), which measures the speed and change of price movements, currently shows no clear signal on both weekly and monthly charts. This neutrality suggests that the stock is neither overbought nor oversold, implying a consolidation phase where investors await clearer directional cues.
The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change calculations, remains bearish on the weekly timeframe but has softened to mildly bearish on the monthly chart. This aligns with the MACD’s mixed signals and supports the view of a tentative shift in momentum.
Bollinger Bands and Moving Averages
Bollinger Bands, which measure volatility and price levels relative to moving averages, present a mixed picture. On the weekly chart, the bands are mildly bearish, indicating that price volatility is skewed towards the downside. Conversely, the monthly Bollinger Bands are bullish, suggesting that over a longer period, price volatility may be expanding upwards, potentially signalling a forthcoming upward breakout.
Daily moving averages remain bearish, reinforcing the short-term downtrend. The stock price is trading below key moving averages, which typically acts as resistance and may limit near-term upside. Investors should watch for a crossover of shorter-term averages above longer-term averages as a potential bullish signal.
Volume and Dow Theory Signals
On-Balance Volume (OBV), a volume-based indicator that helps confirm price trends, shows no clear trend on either weekly or monthly charts. This lack of volume confirmation suggests that recent price movements may not be strongly supported by trading activity, warranting caution.
Dow Theory assessments provide a cautiously optimistic note. The weekly Dow Theory signal is mildly bullish, indicating that the broader market trend may be supportive of the stock’s price stabilisation or recovery. However, the monthly Dow Theory shows no definitive trend, reflecting uncertainty in the longer-term market direction.
Mojo Score and Analyst Ratings
Swaraj Engines currently holds a Mojo Score of 47.0, categorised as a Sell grade, downgraded from Hold on 5 December 2025. This downgrade reflects a deterioration in the company’s technical and fundamental outlook as assessed by MarketsMOJO’s proprietary scoring system. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers.
The downgrade signals that investors should exercise caution, as the stock’s risk profile has increased. However, the mixed technical signals suggest that the stock is at a potential inflection point, where a clearer trend may emerge in the near future.
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Long-Term Performance and Sector Context
Over the past decade, Swaraj Engines has delivered a remarkable 291.2% return, outpacing the Sensex’s 241.9% gain. This long-term outperformance highlights the company’s strong positioning within the Compressors, Pumps & Diesel Engines sector, which has benefited from industrial growth and infrastructure development.
Despite recent technical challenges, the company’s fundamentals remain robust, supported by steady demand in its core segments. Investors should weigh the technical signals against the company’s growth prospects and sector dynamics when considering new positions or portfolio adjustments.
Investor Takeaway
The technical landscape for Swaraj Engines Ltd is currently characterised by a cautious transition from bearish to mildly bearish momentum. While short-term indicators such as daily moving averages and weekly MACD remain negative, monthly indicators and Bollinger Bands suggest a potential stabilisation or recovery phase.
Neutral RSI readings and lack of volume confirmation imply that the stock is consolidating, awaiting a catalyst to define its next directional move. The downgrade in Mojo Grade to Sell signals increased risk, but the stock’s strong historical returns and sector fundamentals provide a counterbalance for long-term investors.
Market participants should monitor key technical levels, including moving average crossovers and MACD shifts, alongside volume trends, to identify a sustainable trend reversal. Until then, a cautious approach with close attention to technical developments is advisable.
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