Texmaco Rail & Engineering Ltd Faces Bearish Momentum Amid Mixed Technical Signals

Current Price and Market Context

As of 22 Jan 2026, Texmaco Rail’s share price closed at ₹119.55, down 0.54% from the previous close of ₹120.20. The stock traded within a range of ₹117.80 to ₹122.00 during the day, remaining close to its 52-week low of ₹115.10 and significantly below its 52-week high of ₹203.70. This price action underscores the stock’s ongoing struggle to regain upward momentum amid broader market pressures.

Technical Trend Shift: Mildly Bearish to Bearish

The technical trend for Texmaco Rail has deteriorated from mildly bearish to outright bearish, signalling increased downside risk in the near term. This shift is corroborated by the daily moving averages, which remain firmly bearish, indicating that the stock’s short-term price action is under pressure. The daily moving averages have failed to provide support, suggesting that sellers continue to dominate trading sessions.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD remains mildly bullish, hinting at some underlying positive momentum that could support a potential recovery. However, the monthly MACD is bearish, reflecting longer-term weakness and a lack of sustained buying interest over several months. This divergence between weekly and monthly MACD readings suggests that while short-term momentum may offer some relief rallies, the broader trend remains unfavourable.

RSI and Relative Strength

The Relative Strength Index (RSI) also offers contrasting signals. The weekly RSI is neutral, providing no clear directional bias, whereas the monthly RSI is bullish. This monthly bullish RSI indicates that the stock may be oversold on a longer timeframe and could be poised for a rebound if buying interest intensifies. However, the absence of a weekly RSI signal tempers optimism, implying that any recovery may be tentative and subject to volatility.

Bollinger Bands and Volatility

Bollinger Bands on both weekly and monthly charts are bearish, signalling increased volatility and downward pressure. The stock price has been hugging the lower band, which often indicates selling pressure and a potential continuation of the downtrend. This technical setup suggests that Texmaco Rail is currently in a phase of heightened risk, with limited immediate upside.

Other Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator shows mild bullishness on the weekly chart but remains bearish on the monthly chart, reinforcing the theme of short-term resilience amid longer-term weakness. Dow Theory assessments align with this, showing a mildly bearish trend weekly and no clear trend monthly. Meanwhile, On-Balance Volume (OBV) is mildly bearish weekly and neutral monthly, indicating that volume trends do not strongly support a sustained rally at present.

Comparative Performance: Texmaco Rail vs Sensex

Texmaco Rail’s recent returns have lagged the benchmark Sensex significantly. Over the past week, the stock declined by 6.86%, compared to the Sensex’s 1.77% fall. The one-month return shows a similar pattern, with Texmaco Rail down 7.58% versus the Sensex’s 3.56% decline. Year-to-date, the stock has dropped 12.96%, markedly underperforming the Sensex’s 3.89% fall.

Over a longer horizon, the stock’s one-year return is deeply negative at -37.41%, while the Sensex has gained 8.01%. However, Texmaco Rail has outperformed over three and five years, with returns of 104.01% and 273.59% respectively, compared to the Sensex’s 35.12% and 65.06%. This suggests that while the stock has delivered strong long-term gains, recent performance has been disappointing.

Notably, over the past decade, Texmaco Rail has underperformed the Sensex, with a negative return of 4.32% compared to the Sensex’s robust 241.83% gain. This highlights the stock’s cyclical nature and the challenges faced in sustaining momentum over extended periods.

Mojo Score and Grade Update

MarketsMOJO’s latest assessment assigns Texmaco Rail a Mojo Score of 40.0, categorising it as a 'Sell' with a Market Cap Grade of 3. This represents an upgrade from the previous 'Strong Sell' grade issued on 13 Oct 2025, signalling a slight improvement in the stock’s outlook. Despite this, the overall technical and fundamental picture remains cautious, reflecting ongoing risks in the industrial manufacturing sector.

Outlook and Investor Considerations

Investors should approach Texmaco Rail with caution given the prevailing bearish technical trend and recent price underperformance. The mixed signals from momentum indicators such as MACD and RSI suggest that while short-term rallies may occur, the stock lacks a clear catalyst for sustained recovery. The bearish daily moving averages and Bollinger Bands reinforce the likelihood of continued volatility and downside risk in the near term.

Long-term investors may find value in the stock’s attractive valuations relative to its historical highs and strong multi-year returns. However, the current technical environment advises prudence, especially for those with shorter investment horizons.

Summary

Texmaco Rail & Engineering Ltd’s technical parameters reveal a complex picture of weakening momentum and mixed indicator signals. The downgrade to a 'Sell' grade by MarketsMOJO reflects the stock’s bearish daily trend and recent price declines, despite some mildly bullish weekly and monthly signals. Investors should remain vigilant, balancing the stock’s long-term potential against short-term technical headwinds and sector challenges.

Given the stock’s underperformance relative to the Sensex over recent periods and the prevailing bearish technical environment, a cautious stance is warranted. Monitoring key technical indicators such as MACD, RSI, and moving averages will be crucial to identifying any meaningful shifts in momentum that could signal a turnaround.

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