Trident Ltd Gains 0.08%: 3 Key Factors Driving the Week’s Mixed Momentum

23 February: Volume Surge Sparks Price Recovery

Trident Ltd witnessed a remarkable surge in trading volume on 23 February 2026, with over 1.65 crore shares changing hands, translating to a traded value of approximately ₹44.39 crores. This spike coincided with a 4.07% price gain, closing at Rs.26.58, reversing a prolonged nine-day decline. The stock outperformed the Sensex’s 0.39% gain and its sector by a significant margin, signalling renewed investor interest despite the company’s prior downgrade to Sell.

Technically, the stock’s price moved above its 5-day, 20-day, and 50-day moving averages, indicating short- to medium-term bullish momentum. However, it remained below the 100-day and 200-day averages, reflecting that the longer-term downtrend was yet to be overcome. The increase in delivery volume suggested genuine accumulation rather than speculative trading, a positive sign for near-term prospects.

24 February: Price Retreat Amid Market Weakness

Following the strong rally, Trident’s stock price corrected by 2.60% to close at Rs.25.89 on 24 February, underperforming the Sensex which declined 0.78%. The drop reflected profit-taking and cautious sentiment as technical indicators began to deteriorate. Intraday volatility was evident, with the stock trading between Rs.25.61 and Rs.26.50. The decline came amid broader market weakness and sectoral challenges, including raw material cost pressures and subdued consumer demand in the garments and apparels industry.

25 February: Downgrade to Strong Sell Amid Weak Technicals and Financials

On 25 February, MarketsMOJO downgraded Trident Ltd from Sell to Strong Sell, reflecting a marked deterioration in technical indicators and financial trends. The Mojo Score fell to 28.0, signalling heightened risk. The stock closed at Rs.25.89, down 2.60% from the previous day, amid growing investor caution.

Technical momentum shifted decisively bearish, with the MACD indicator negative on weekly and monthly charts, daily moving averages below key levels, and Bollinger Bands signalling increased downward pressure. The Relative Strength Index remained neutral, offering no bullish reversal signal. Other indicators such as the Know Sure Thing oscillator and On-Balance Volume presented mixed but predominantly bearish readings.

Financially, Trident reported a 44.5% decline in net profit after tax for Q3 FY25-26 to ₹44.24 crores. Operating profit growth over five years was modest at 6.54% annually, while interest expenses surged 48.59% over six months to ₹50.43 crores. The operating profit to interest coverage ratio declined to 5.31 times, indicating reduced debt servicing cushion despite manageable leverage (Debt to EBITDA at 1.02 times).

Long-term returns have been disappointing, with a 5.55% decline over one year and a 15.8% loss over three years, both underperforming the Sensex. Despite an attractive PEG ratio of 0.8 and a reasonable ROCE of 10.7%, the deteriorating technicals and weak near-term financial outlook prompted the downgrade.

26-27 February: Consolidation and Week Close

Trident’s stock price continued to face pressure on 26 February, declining 1.19% to Rs.25.69 despite the Sensex gaining 0.19%. On 27 February, the stock slipped further by 0.51% to close the week at Rs.25.56, marginally above the previous Friday’s close of Rs.25.54. The Sensex, in contrast, fell 1.16% on the final trading day, resulting in a weekly underperformance of 0.96% for the benchmark index versus a slight gain for Trident.

Trading volumes tapered off after the spike earlier in the week, reflecting subdued investor interest amid the bearish technical backdrop and fundamental concerns. The stock’s proximity to its 52-week low of Rs.23.20 underscores the ongoing challenges, while the 52-week high remains at Rs.34.60, highlighting the wide trading range and volatility experienced over the past year.

Key Takeaways

Positive Signals: The sharp volume surge and 4.07% price gain on 23 February marked a potential trend reversal after a prolonged decline, supported by accumulation signals and short-term technical strength above key moving averages. The stock’s slight weekly gain of 0.08% contrasted favourably with the Sensex’s 0.96% loss, indicating relative resilience.

Cautionary Signals: The downgrade to Strong Sell on 25 February reflected deteriorating technical momentum, including bearish MACD and moving averages, alongside weak quarterly financial results with a 44.5% PAT decline and rising interest expenses. The stock remains below longer-term moving averages and near its 52-week low, underscoring ongoing risks. Limited institutional interest and modest long-term growth further temper optimism.

Overall, Trident Ltd’s week was characterised by mixed momentum, with short-term technical recovery offset by fundamental and technical headwinds. Investors should monitor volume trends and technical indicators closely to assess whether the recent rebound can be sustained or if further downside pressure will prevail.

Conclusion

Trident Ltd’s performance over the week ending 27 February 2026 highlights a complex interplay of factors. The initial volume-driven rally suggested renewed buying interest, but the subsequent downgrade to Strong Sell and weakening technicals signal caution. While the stock marginally outperformed the Sensex, the fundamental challenges and bearish technical indicators suggest that the recovery remains tentative. Market participants should remain vigilant, balancing the short-term momentum against the broader risks inherent in the company’s financial and technical profile.

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