Price Movement and Market Context
On 6 February 2026, Trent Ltd. closed at ₹4,131.60, up from the previous close of ₹4,013.20. The stock traded within a range of ₹3,865.10 to ₹4,141.00 during the day, still well below its 52-week high of ₹6,259.00 but comfortably above the 52-week low of ₹3,643.70. This recent price action reflects a short-term recovery after a period of weakness, yet the stock remains under pressure compared to its historical highs.
Comparing returns with the broader Sensex index reveals a mixed performance. Over the past week, Trent outperformed the Sensex with an 8.07% gain versus the benchmark’s 0.91%. However, over the one-month and year-to-date periods, the stock underperformed, declining 6.72% and 3.42% respectively, while the Sensex fell by 2.49% and 2.24%. The longer-term perspective shows a stark contrast: a 28.16% decline over one year against a 6.44% gain in the Sensex, but impressive gains over three, five, and ten years, with returns of 234.33%, 501.66%, and 2,689.36% respectively, far outpacing the benchmark.
Technical Trend Analysis
Trent’s technical trend has shifted from bearish to mildly bearish, indicating a tentative improvement but still reflecting underlying weakness. This nuanced stance is supported by a variety of technical indicators across daily, weekly, and monthly timeframes.
The Moving Averages on the daily chart remain mildly bearish, suggesting that the short-term price momentum is still under pressure. The stock price is likely trading below key moving averages such as the 50-day and 200-day, which often act as resistance levels in a downtrend.
The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture: weekly MACD is mildly bullish, signalling some upward momentum in the near term, while the monthly MACD remains mildly bearish, indicating that the longer-term trend has yet to confirm a sustained recovery. This divergence between weekly and monthly MACD readings highlights the stock’s current technical uncertainty.
Momentum and Oscillator Indicators
The Relative Strength Index (RSI) adds further complexity. On the weekly scale, the RSI shows no clear signal, hovering in a neutral zone that neither confirms overbought nor oversold conditions. Conversely, the monthly RSI is bullish, suggesting that the stock may be gaining strength over a longer horizon and could be poised for a gradual uptrend if other factors align.
Bollinger Bands, which measure volatility and price levels relative to moving averages, are mildly bearish on both weekly and monthly charts. This indicates that the stock price is closer to the lower band, reflecting downward pressure and potential volatility, but not yet signalling an extreme oversold condition that might prompt a sharp rebound.
Volume and Trend Confirmation
Volume-based indicators such as On-Balance Volume (OBV) are mildly bearish on both weekly and monthly timeframes, suggesting that selling pressure has been dominant recently. This volume trend supports the cautious stance on the stock’s momentum, as declining OBV often precedes further price weakness.
The Know Sure Thing (KST) oscillator is bearish on the weekly chart and mildly bearish on the monthly chart, reinforcing the view that momentum remains subdued. Similarly, Dow Theory assessments on both weekly and monthly scales are mildly bearish, indicating that the broader market trend for Trent is still under pressure despite some short-term improvements.
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Mojo Score and Grade Implications
Trent’s current Mojo Score stands at 48.0, reflecting a below-average technical and fundamental outlook. This score has contributed to the downgrade of its Mojo Grade from Hold to Sell as of 1 July 2025. The Market Cap Grade is rated at 1, indicating a relatively small market capitalisation compared to peers, which may contribute to higher volatility and risk.
The downgrade signals that analysts and algorithmic models have identified deteriorating technical conditions and possibly fundamental challenges within the Garments & Apparels sector. Investors should weigh this cautionary stance against the stock’s long-term outperformance relative to the Sensex, which remains impressive over multi-year horizons.
Long-Term Performance Context
Despite recent technical headwinds, Trent’s long-term returns remain compelling. Over the past five years, the stock has surged by 501.66%, vastly outperforming the Sensex’s 64.22% gain. Over a decade, the stock’s return of 2,689.36% dwarfs the benchmark’s 238.44%. This exceptional performance underscores the company’s historical growth and resilience in the Garments & Apparels sector.
However, the recent one-year return of -28.16% compared to the Sensex’s 6.44% gain highlights a period of significant underperformance, likely driven by sectoral challenges, macroeconomic factors, or company-specific issues. This divergence emphasises the importance of monitoring technical signals closely for signs of recovery or further deterioration.
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Investor Takeaway and Outlook
Trent Ltd.’s technical indicators present a nuanced picture. While short-term momentum shows signs of mild improvement, the prevailing mildly bearish trends across key oscillators and moving averages counsel caution. The mixed signals from MACD and RSI across weekly and monthly timeframes suggest that a definitive trend reversal has yet to materialise.
Investors should consider the stock’s recent outperformance over the past week as a potential short-term bounce rather than a confirmed uptrend. The downgrade to a Sell grade and the modest Mojo Score reinforce the need for prudence, especially given the stock’s underperformance over the past year and month.
Long-term investors may find comfort in Trent’s strong multi-year returns, but should remain vigilant for further technical deterioration or fundamental shifts in the Garments & Apparels sector. Monitoring volume trends and momentum oscillators will be critical in assessing whether the stock can sustain any recovery or if further downside risks prevail.
Conclusion
In summary, Trent Ltd. is navigating a complex technical landscape marked by a shift from bearish to mildly bearish momentum. The interplay of bullish monthly RSI and weekly MACD against bearish volume and trend indicators suggests a stock at a crossroads. Investors are advised to maintain a cautious stance, balancing the company’s impressive long-term growth with recent technical and fundamental challenges.
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