Swaraj Engines Ltd Technical Momentum Shifts Amid Mixed Indicator Signals

Technical Trend Overview and Price Movement

The stock closed at ₹3,622.35 on 18 Feb 2026, up from the previous close of ₹3,566.80, marking a daily increase of 1.56%. The intraday range was relatively tight, with a low of ₹3,565.00 and a high of ₹3,623.85. Over the past 52 weeks, Swaraj Engines has traded between ₹2,530.00 and ₹4,725.95, indicating significant volatility and a wide trading band. The recent technical trend has shifted from bearish to mildly bearish, signalling a potential easing of downward pressure but not yet a definitive reversal.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) remains bearish on the weekly chart, indicating that the short-term momentum is still under pressure. However, the monthly MACD has improved to mildly bearish, suggesting that longer-term momentum is stabilising. This divergence between weekly and monthly MACD readings highlights a transitional phase where short-term selling pressure may be abating, but sustained bullish momentum has yet to materialise.

Relative Strength Index (RSI) Signals

Both weekly and monthly RSI indicators currently show no clear signal, hovering in neutral territory. This absence of an overbought or oversold condition implies that the stock is neither excessively bought nor sold, which could mean consolidation or preparation for a directional move. Investors should watch for any RSI movement beyond the typical 30-70 range to identify potential entry or exit points.

Bollinger Bands and Moving Averages

Bollinger Bands present a contrasting view: weekly readings are mildly bearish, reflecting some downward pressure and potential volatility, while monthly bands are bullish, indicating that the stock price is holding above its longer-term average and may be poised for upward movement. Daily moving averages also suggest a mildly bearish stance, with the stock price hovering near or slightly below key averages, signalling cautious investor sentiment.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator remains bearish on the weekly timeframe but has improved to mildly bearish on the monthly chart, reinforcing the theme of a gradual momentum shift. Dow Theory analysis shows a mildly bullish trend on the weekly scale, though no clear trend is established monthly. Meanwhile, On-Balance Volume (OBV) is mildly bullish weekly but neutral monthly, suggesting that volume trends are beginning to support price gains in the short term but lack conviction over longer periods.

Comparative Performance: Swaraj Engines vs Sensex

Over various time horizons, Swaraj Engines has outperformed the Sensex significantly. The stock’s one-year return stands at 31.16%, compared to the Sensex’s 9.81%. Over three years, the stock has surged 127.82%, dwarfing the Sensex’s 36.80% gain. Even over a decade, Swaraj Engines has delivered a remarkable 354.36% return, well ahead of the Sensex’s 256.90%. These figures underscore the company’s strong growth trajectory despite recent technical caution.

Mojo Score and Rating Update

MarketsMOJO has downgraded Swaraj Engines from a Hold to a Sell rating as of 16 Feb 2026, reflecting a Mojo Score of 47.0. This downgrade is influenced by the mixed technical signals and the company’s current market cap grade of 3, which indicates a small-cap status with moderate liquidity and market presence. The downgrade suggests that while the stock has shown strong historical returns, near-term technical and fundamental factors warrant a cautious stance.

Investor Implications and Outlook

The mildly bearish technical trend combined with mixed momentum indicators suggests that investors should approach Swaraj Engines with prudence. The absence of strong RSI signals and the divergence between weekly and monthly MACD readings imply that the stock may be consolidating before a clearer directional move. Traders might consider waiting for confirmation of a bullish reversal, such as a weekly MACD crossover or a sustained break above daily moving averages, before increasing exposure.

Long-term investors can take comfort from the company’s robust multi-year returns and the bullish monthly Bollinger Bands, which indicate underlying strength. However, the recent downgrade and the mildly bearish weekly technicals highlight the need for careful monitoring of price action and volume trends.

Summary of Technical Signals

In summary, Swaraj Engines Ltd’s technical landscape is characterised by a transition from bearish to mildly bearish momentum, with key indicators offering a mixed outlook. Weekly MACD and KST remain bearish, while monthly readings show mild improvement. RSI neutrality and bullish monthly Bollinger Bands suggest potential for stabilisation, but daily moving averages and weekly Bollinger Bands caution against premature optimism. Volume trends via OBV provide some short-term support, yet the overall picture calls for vigilance.

Investors should weigh these technical factors alongside fundamental considerations and market conditions. Given the recent downgrade to a Sell rating by MarketsMOJO and the modest market cap grade, a conservative approach is advisable until clearer bullish signals emerge.

Looking Ahead

Market participants should monitor upcoming price action around key support and resistance levels, particularly the 50-day and 200-day moving averages, to gauge the stock’s directional bias. A sustained move above ₹3,700 could signal renewed buying interest, while a drop below ₹3,550 may reinforce bearish momentum. Additionally, watching for MACD crossovers and RSI shifts will be critical in confirming any trend reversals.

Overall, Swaraj Engines Ltd remains a stock with strong historical performance but currently faces technical headwinds that require careful analysis and timing for entry or exit decisions.

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