Thangamayil Jewellery Ltd Shows Strong Bullish Momentum Amid Mixed Technical Signals

Technical Momentum and Indicator Overview

Thangamayil Jewellery Ltd’s current price stands at ₹3,481.75, up 4.14% from the previous close of ₹3,343.35, with intraday highs touching ₹3,599.00 — matching its 52-week high. This surge reflects a significant bullish momentum shift, confirmed by the upgrade in the technical trend from mildly bullish to bullish. The stock’s technical strength is underpinned by several key indicators.

The Moving Average Convergence Divergence (MACD) remains bullish on both weekly and monthly charts, signalling sustained upward momentum. The MACD’s positive crossover and widening histogram bars suggest increasing buying pressure over medium and longer-term horizons.

Similarly, Bollinger Bands on weekly and monthly timeframes are bullish, indicating that price volatility is expanding in favour of upward price movement. The stock price currently trades near the upper band, a classic sign of strength and potential continuation of the rally.

Daily moving averages also support this bullish stance, with the short-term averages positioned above longer-term averages, confirming a positive price trend on a day-to-day basis.

However, the Relative Strength Index (RSI) presents a more nuanced picture. Both weekly and monthly RSI readings are bearish, suggesting that the stock may be experiencing short-term overbought conditions or momentum fatigue. This divergence between RSI and MACD/Bollinger Bands often signals a potential consolidation or minor pullback before further gains.

The Know Sure Thing (KST) indicator is bullish on the weekly chart but mildly bearish monthly, reinforcing the mixed momentum signals. Meanwhile, the On-Balance Volume (OBV) indicator is mildly bearish weekly and shows no clear trend monthly, indicating that volume support for the price rally is moderate but not yet decisively strong.

Price Performance Relative to Market Benchmarks

Thangamayil Jewellery Ltd’s price appreciation has been exceptional when compared to the broader Sensex index. Over the past week, the stock returned 8.33%, vastly outperforming the Sensex’s modest 0.46% gain. The one-month return of 7.96% contrasts with the Sensex’s decline of 0.76%, while year-to-date gains of 8.22% also outpace the Sensex’s slight fall of 0.18%.

Longer-term returns are even more striking. Over the past year, the stock surged 85.82%, dwarfing the Sensex’s 9.10% rise. Over three years, the stock’s return of 570.33% far exceeds the Sensex’s 42.01%, and over five years, the stock has delivered an extraordinary 1,027.79% gain compared to the Sensex’s 76.57%. The ten-year return of 3,166.49% is a testament to the company’s sustained growth and value creation, vastly outperforming the Sensex’s 234.81% over the same period.

This outperformance highlights Thangamayil Jewellery Ltd’s strong market positioning within the Gems, Jewellery and Watches sector, supported by favourable industry dynamics and company-specific growth drivers.

Technical Ratings and Market Sentiment

MarketsMOJO currently assigns Thangamayil Jewellery Ltd a Mojo Score of 78.0, reflecting a solid Buy rating, though this represents a slight downgrade from the previous Strong Buy grade as of 18 Nov 2025. The downgrade aligns with the mixed technical signals, particularly the bearish RSI and mildly bearish monthly KST, which suggest caution amid the bullish momentum.

The company’s market capitalisation grade stands at 3, indicating a mid-tier market cap within its sector. This positioning offers a balance of growth potential and liquidity, appealing to investors seeking exposure to the gems and jewellery space without the volatility of microcaps.

Overall, the technical trend upgrade to bullish, supported by strong MACD and Bollinger Bands readings, suggests that the stock is poised for further gains, albeit with potential short-term volatility given the RSI and OBV signals.

Outlook and Investor Considerations

Investors should note that while the technical momentum is predominantly bullish, the bearish RSI readings on weekly and monthly charts caution against overextension. This suggests that the stock may experience intermittent profit-taking or consolidation phases before resuming its upward trajectory.

The alignment of multiple bullish indicators such as MACD, Bollinger Bands, daily moving averages, and Dow Theory on weekly and monthly timeframes provides a strong foundation for continued price appreciation. However, the mildly bearish OBV and mixed KST readings imply that volume confirmation and momentum strength should be monitored closely.

Given the stock’s impressive long-term returns and recent technical upgrades, Thangamayil Jewellery Ltd remains an attractive proposition for investors with a medium to long-term horizon. The current price near the 52-week high of ₹3,599.00 reflects renewed market confidence, but prudent investors may consider incremental entry points during minor pullbacks.

Sector-wise, the Gems, Jewellery and Watches industry continues to benefit from rising consumer demand and festive season tailwinds, which could further support the company’s earnings growth and stock performance.

Summary

Thangamayil Jewellery Ltd’s technical parameters have shifted decisively towards a bullish stance, supported by strong MACD and Bollinger Bands signals and daily moving average trends. Despite some cautionary signs from RSI and volume indicators, the stock’s price momentum and long-term returns significantly outperform the Sensex and sector peers. The recent downgrade from Strong Buy to Buy by MarketsMOJO reflects a balanced view acknowledging both the bullish momentum and potential short-term volatility. Investors should watch for consolidation phases but can remain optimistic about the stock’s medium to long-term prospects within the gems and jewellery sector.

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