Thangamayil Jewellery Ltd Sees Technical Momentum Shift Amid Mixed Indicator Signals

Price Movement and Market Context

On 1 February 2026, Thangamayil Jewellery Ltd closed at ₹3,336.25, down 4.15% from the previous close of ₹3,480.85. The intraday range was between ₹3,280.45 and ₹3,481.40, reflecting heightened volatility. The stock remains well below its 52-week high of ₹4,138.15 but comfortably above its 52-week low of ₹1,526.45, indicating a strong recovery over the past year.

Comparatively, the stock has outperformed the Sensex significantly over multiple time horizons. Over the past year, Thangamayil Jewellery has delivered a remarkable 93.98% return, dwarfing the Sensex’s 7.18% gain. Over five years, the stock’s return of 1,028.11% vastly exceeds the Sensex’s 77.74%, underscoring its strong growth trajectory within the Gems and Jewellery sector.

Technical Trend Shift: From Bullish to Mildly Bullish

The recent technical parameter change marks a shift from a previously bullish trend to a mildly bullish stance. This adjustment reflects a moderation in upward momentum, signalling that while the stock is not in a strong uptrend, it retains positive bias. This subtle change is critical for traders and investors who rely on technical analysis to time entries and exits.

Daily moving averages currently indicate a mildly bullish trend, suggesting that short-term price action is stabilising after recent declines. The stock’s 50-day and 200-day moving averages remain supportive, with the 50-day average still above the 200-day, a classic bullish signal, albeit with narrowing spreads.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator remains bullish on both weekly and monthly timeframes, signalling that the underlying momentum continues to favour the bulls over the medium to long term. The weekly MACD line is above its signal line, indicating positive momentum despite recent price weakness. On the monthly chart, the MACD histogram shows expanding positive bars, reinforcing the longer-term bullish outlook.

However, the Relative Strength Index (RSI) presents a contrasting view. Both weekly and monthly RSI readings are bearish, suggesting that the stock is currently experiencing downward pressure and may be oversold in the short term. The weekly RSI has dipped below the neutral 50 level, indicating weakening momentum, while the monthly RSI remains subdued, reflecting a cautious stance among investors.

Bollinger Bands and Volatility

Bollinger Bands analysis reveals a mildly bullish signal on the weekly chart and a bullish stance on the monthly chart. The stock price is currently near the lower band on the weekly timeframe, which may indicate a potential rebound or consolidation phase. The monthly Bollinger Bands remain wide, signalling sustained volatility but with an upward bias.

Other Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator is bullish on the weekly chart but mildly bearish on the monthly chart, reflecting mixed momentum signals. This divergence suggests that while short-term momentum is positive, longer-term momentum is facing some headwinds.

Dow Theory assessments show a mildly bearish trend on the weekly timeframe but a bullish trend on the monthly scale. This split indicates that the stock may be undergoing a short-term correction within a longer-term uptrend.

On-Balance Volume (OBV) analysis shows no clear trend on the weekly chart but a bullish trend on the monthly chart, implying that accumulation is occurring over the longer term despite recent selling pressure.

Mojo Score and Ratings Update

Thangamayil Jewellery Ltd currently holds a Mojo Score of 77.0, reflecting a strong buy sentiment, although this represents a downgrade from a previous Strong Buy rating as of 30 January 2026. The downgrade aligns with the technical trend moderation and recent price pullback. The company’s market capitalisation grade stands at 3, indicating a mid-sized market cap within its sector.

Investors should note that the downgrade does not imply a fundamental deterioration but rather a recalibration of technical momentum and risk-reward balance.

Sector and Industry Context

Operating within the Gems, Jewellery and Watches sector, Thangamayil Jewellery Ltd benefits from strong consumer demand and favourable market dynamics. The sector has shown resilience despite macroeconomic uncertainties, supported by rising discretionary spending and festive season demand. The company’s robust returns over the past decade, with a 10-year return of 3,179.03% compared to the Sensex’s 230.79%, underscore its leadership position and growth potential.

Investor Takeaway and Outlook

Thangamayil Jewellery Ltd’s recent technical parameter change from bullish to mildly bullish reflects a period of consolidation and recalibration after a strong rally. The mixed signals from key indicators such as MACD, RSI, and KST suggest that while the stock retains underlying strength, short-term momentum is under pressure. Investors should monitor the RSI closely for signs of oversold conditions that could trigger a rebound.

The stock’s strong historical returns and sector leadership provide a solid foundation for medium to long-term investors. However, the recent downgrade in Mojo Grade from Strong Buy to Buy indicates a need for caution and disciplined risk management in the near term.

Technical traders may find opportunities in the mildly bullish moving averages and Bollinger Bands signals, particularly if the stock stabilises above key support levels near ₹3,280. Conversely, a sustained break below this level could signal further downside risk.

Overall, Thangamayil Jewellery Ltd remains an attractive stock within the Gems, Jewellery and Watches sector, but investors should weigh the current technical nuances carefully before making fresh commitments.

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