TIL Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview and Momentum Analysis

TIL Ltd’s technical trend has evolved from a clear bearish position to a mildly bearish one, reflecting a subtle improvement in price momentum. The stock closed at ₹258.00 on 12 Feb 2026, up from the previous close of ₹255.70, with intraday highs reaching ₹259.60 and lows at ₹252.15. This price action indicates a tentative recovery attempt after a period of downward pressure.

Examining the Moving Average Convergence Divergence (MACD), the weekly chart remains bearish, signalling that the short-term momentum is still under pressure. However, the monthly MACD has softened to mildly bearish, suggesting that longer-term selling momentum is easing. This divergence between weekly and monthly MACD readings points to a potential bottoming process, though confirmation is required from other indicators.

The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no clear signal, hovering in a neutral zone. This lack of momentum extremes implies that the stock is neither overbought nor oversold, which could mean consolidation or a pause before the next directional move.

Bollinger Bands and Moving Averages Signal Caution

Bollinger Bands on weekly and monthly charts remain mildly bearish, indicating that price volatility is still skewed towards the downside. The bands have not expanded significantly, which suggests limited volatility expansion but a persistent downward bias. Daily moving averages also reflect a mildly bearish stance, with the stock price trading near or slightly below key averages, signalling resistance to upward price movement.

The KST (Know Sure Thing) indicator aligns with this cautious tone, showing bearish momentum on the weekly scale and mildly bearish on the monthly. This further reinforces the view that while short-term selling pressure remains, the longer-term trend may be stabilising.

Volume and Dow Theory Insights

On-Balance Volume (OBV) presents a mildly bullish signal on the weekly chart, suggesting that accumulation might be occurring despite the price weakness. This divergence between volume and price could indicate that informed investors are gradually buying, potentially setting the stage for a reversal. However, the monthly OBV shows no clear trend, reflecting uncertainty over a longer horizon.

Dow Theory readings add another layer of complexity. The weekly Dow Theory is mildly bullish, hinting at a nascent uptrend in price action, while the monthly perspective remains without a defined trend. This mixed message underscores the importance of monitoring upcoming price movements closely for confirmation of trend direction.

Comparative Performance and Market Context

When analysing TIL Ltd’s returns relative to the benchmark Sensex, the stock has delivered mixed results over various timeframes. Over the past week, TIL surged 4.81%, significantly outperforming the Sensex’s 0.50% gain. However, the one-month return was negative at -0.96%, lagging behind the Sensex’s 0.79% rise. Year-to-date, the stock has declined 5.29%, underperforming the Sensex’s -1.16% loss.

Longer-term returns show a more positive picture. Over one year, TIL Ltd has appreciated 16.40%, outpacing the Sensex’s 10.41%. The three-year return of 57.80% also exceeds the Sensex’s 38.81%, highlighting strong relative performance in this period. Conversely, the five-year return of 44.94% trails the Sensex’s 63.46%, and the ten-year return is negative at -24.38%, compared to a robust 267.00% gain for the Sensex. These figures suggest that while TIL Ltd has had periods of strong growth, it has struggled to maintain consistent outperformance over the very long term.

Mojo Score and Ratings Update

MarketsMOJO’s latest assessment assigns TIL Ltd a Mojo Score of 13.0, reflecting a Strong Sell rating. This is a downgrade from the previous Sell grade, effective from 22 Sep 2025. The Market Cap Grade stands at 3, indicating a relatively modest market capitalisation compared to larger peers in the automobile sector. The downgrade reflects the deteriorating technical and fundamental outlook, signalling caution for investors considering exposure to this stock.

Given the mixed technical signals and the recent downgrade, investors should weigh the risks carefully. The mildly bearish technical trend and subdued momentum indicators suggest that the stock may face resistance in the near term, despite occasional short-term rallies.

Investor Takeaways and Outlook

Investors should approach TIL Ltd with caution given the current technical landscape. The mildly bearish trend and mixed momentum indicators suggest that while the stock is attempting to stabilise, it has yet to establish a clear upward trajectory. The absence of strong RSI signals and the divergence between weekly and monthly MACD readings imply that the stock may remain range-bound or face volatility in the near term.

Volume-based indicators such as OBV provide a glimmer of hope with mild bullishness on the weekly scale, hinting at possible accumulation. However, confirmation through sustained price gains and improved moving average alignments will be necessary before a more optimistic outlook can be adopted.

Comparative returns indicate that TIL Ltd has outperformed the Sensex over the medium term but lagged over longer horizons, underscoring the importance of timing and market cycles in investment decisions. The recent downgrade to a Strong Sell by MarketsMOJO further emphasises the need for prudence.

In summary, while TIL Ltd shows signs of technical momentum shift, the overall picture remains cautious. Investors should monitor upcoming price action closely, paying particular attention to MACD crossovers, moving average behaviour, and volume trends to gauge the stock’s next directional move.

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