Technical Trend Overview
Recent analysis shows Trident Ltd’s technical trend has deteriorated from mildly bearish to outright bearish. The daily moving averages have turned decisively negative, reflecting sustained selling pressure. The stock closed at ₹26.95 on 6 January 2026, down 0.30% from the previous close of ₹27.03, with intraday trading ranging between ₹26.89 and ₹27.29. This price action remains well below its 52-week high of ₹34.60, indicating a significant retracement from recent peaks.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator, a key momentum gauge, remains bearish on both weekly and monthly charts. This suggests that the stock’s short-term momentum is weakening relative to its longer-term trend. The bearish MACD crossover on the weekly timeframe confirms that selling momentum is prevailing, while the monthly MACD reinforces this downtrend, signalling that the stock may continue to face downward pressure in the medium term.
RSI and Relative Strength
The Relative Strength Index (RSI) currently shows no clear signal on either the weekly or monthly charts, hovering in a neutral zone. This indicates that while the stock is not yet oversold, it lacks the bullish momentum needed to trigger a reversal. The absence of a strong RSI signal suggests that investors should remain cautious, as the stock could either consolidate or continue its downward trajectory depending on broader market conditions.
Bollinger Bands and Price Volatility
Bollinger Bands analysis reveals a bearish stance on the weekly chart and a mildly bearish outlook on the monthly chart. The stock price is trading near the lower band on the weekly timeframe, indicating increased volatility and potential downward pressure. The mildly bearish monthly band suggests that while the stock is experiencing some selling, it has not yet reached extreme levels of volatility that might prompt a sharp rebound.
Moving Averages and KST Indicator
Daily moving averages have turned bearish, with the short-term averages crossing below longer-term averages, signalling a negative price momentum. The Know Sure Thing (KST) indicator presents a mixed picture: bearish on the weekly chart but mildly bullish on the monthly chart. This divergence implies that while short-term momentum is weak, there may be some underlying strength in the longer-term trend, though it is insufficient to offset the prevailing bearish sentiment.
Dow Theory and On-Balance Volume
According to Dow Theory, the weekly trend is mildly bearish, while the monthly trend shows no clear direction. This aligns with the mixed signals from other technical indicators, suggesting uncertainty in the stock’s medium-term outlook. On-Balance Volume (OBV) does not indicate any significant trend on either weekly or monthly charts, implying that volume is not confirming price movements, which often precedes a continuation of the current trend.
Comparative Performance Against Sensex
Trident Ltd’s returns have lagged behind the Sensex over key periods. While the stock outperformed the benchmark in the past week with a 1.43% gain versus Sensex’s 0.88%, it underperformed over the last month (-3.23% vs. -0.32%) and year-to-date (0.71% vs. 0.26%). More strikingly, the stock has delivered negative returns over the past one and three years (-20.99% and -20.85%, respectively), while the Sensex posted robust gains of 7.85% and 41.57% over the same periods. Over five and ten years, however, Trident has shown strong cumulative returns of 74.55% and 372.81%, outperforming the Sensex’s 76.39% and 234.01%, respectively, highlighting its long-term growth potential despite recent weakness.
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Mojo Score and Grade Revision
MarketsMOJO’s proprietary scoring system currently assigns Trident Ltd a Mojo Score of 43.0, reflecting a Sell rating. This represents a downgrade from the previous Hold grade as of 11 August 2025. The Market Cap Grade stands at 3, indicating a mid-tier capitalisation relative to peers in the Garments & Apparels sector. The downgrade is consistent with the deteriorating technical indicators and subdued price momentum, signalling caution for investors considering fresh exposure.
Sector and Industry Context
Operating within the Garments & Apparels sector, Trident faces sector-specific headwinds including fluctuating raw material costs and competitive pressures. The sector has seen mixed performance recently, with some companies benefiting from export demand while others struggle with margin compression. Trident’s technical weakness may partly reflect these broader challenges, underscoring the importance of monitoring sector trends alongside company-specific developments.
Price Range and Volatility
The stock’s 52-week price range spans from ₹23.20 to ₹34.60, with the current price near the lower end of this spectrum. This proximity to the annual low highlights the stock’s vulnerability to further downside, especially if bearish momentum persists. Intraday volatility remains moderate, with today’s trading range between ₹26.89 and ₹27.29, suggesting some price consolidation but limited buying interest at higher levels.
Outlook and Investor Considerations
Given the confluence of bearish technical signals, investors should approach Trident Ltd with caution. The lack of strong RSI support and the bearish MACD and moving averages indicate that the stock may face continued pressure in the near term. However, the mildly bullish monthly KST and the stock’s long-term outperformance relative to the Sensex suggest that a recovery is possible if sector conditions improve and technical momentum shifts positively.
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Summary
Trident Ltd’s technical landscape has shifted decisively towards bearishness, with key indicators such as MACD, moving averages, and Bollinger Bands signalling downside momentum. The stock’s recent price action and relative underperformance against the Sensex over medium-term periods reinforce this cautious outlook. While some longer-term indicators hint at potential resilience, the current technical environment warrants a Sell rating, as reflected in the MarketsMOJO Mojo Grade downgrade. Investors should monitor technical developments closely and consider sector dynamics before initiating or adding to positions in Trident Ltd.
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