Trident Ltd Technical Momentum Shifts Amid Bearish Signals

Technical Trend Overview

Recent technical assessments reveal that Trident Ltd’s overall trend has deteriorated from mildly bearish to outright bearish. The Moving Average Convergence Divergence (MACD) indicator, a critical momentum gauge, remains bearish on both weekly and monthly charts, underscoring sustained downward pressure. The Relative Strength Index (RSI), however, remains neutral with no clear signal on weekly or monthly timeframes, suggesting the stock is neither oversold nor overbought at present.

Bollinger Bands, which measure volatility and price levels relative to moving averages, indicate a mildly bearish stance on the weekly chart and a more pronounced bearish signal monthly. Daily moving averages also confirm a bearish trend, with the stock trading below key averages, signalling weak short-term momentum.

Momentum Oscillators and Volume Analysis

The Know Sure Thing (KST) oscillator presents a mixed picture: weekly readings are bearish, while monthly data show mild bullishness. This divergence suggests short-term weakness amid some longer-term stabilisation attempts. Dow Theory analysis aligns with this, showing a mildly bearish weekly outlook but a mildly bullish monthly perspective, indicating potential for recovery if conditions improve.

On-balance volume (OBV), which tracks buying and selling pressure, is mildly bearish weekly but mildly bullish monthly, reflecting cautious accumulation by some investors despite recent price declines.

Price Action and Volatility

On 25 Feb 2026, Trident’s stock traded within a range of ₹25.61 to ₹26.50, closing near the lower end of the day’s spectrum. The 52-week high stands at ₹34.60, while the 52-week low is ₹23.20, placing the current price closer to the lower bound of its annual range. This proximity to the yearly low highlights the stock’s vulnerability amid sector headwinds and broader market volatility.

Comparatively, the stock’s recent returns have lagged the benchmark Sensex index. Over the past week, Trident’s stock declined by 1.86%, slightly worse than the Sensex’s 1.47% drop. Over one month, however, the stock outperformed with a 2.01% gain versus the Sensex’s 0.84%. Year-to-date, the stock has fallen 3.25%, marginally better than the Sensex’s 3.51% decline. Longer-term returns paint a mixed picture: a 5-year gain of 84.40% surpasses the Sensex’s 61.92%, but the 3-year return of -15.80% significantly trails the Sensex’s 38.28% growth, reflecting recent sector challenges.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Trident Ltd a Mojo Score of 28.0, categorising it as a Strong Sell. This represents a downgrade from the previous Sell rating on 24 Feb 2026, reflecting deteriorating technical and fundamental metrics. The company’s Market Cap Grade is rated 3, indicating a mid-tier capitalisation relative to peers in the Garments & Apparels sector.

The downgrade is consistent with the bearish technical signals and recent price underperformance. Investors should note that the Strong Sell rating is driven by a combination of weak momentum, declining moving averages, and subdued volume patterns, suggesting limited near-term upside potential.

Sector and Industry Context

Trident operates within the Garments & Apparels sector, which has faced headwinds from fluctuating raw material costs, changing consumer demand, and global supply chain disruptions. The sector’s volatility has contributed to mixed technical signals across constituent stocks, with Trident’s recent momentum shift emblematic of broader challenges.

While some peers have managed to stabilise or recover, Trident’s technical indicators suggest it remains under pressure. The bearish MACD and moving averages, combined with the stock’s proximity to its 52-week low, highlight the need for cautious positioning.

Investor Implications and Outlook

For investors, the current technical landscape advises prudence. The bearish momentum across multiple timeframes and indicators suggests that Trident Ltd may continue to face downward pressure in the near term. The absence of a clear RSI signal indicates that the stock is not yet oversold, leaving room for further declines before a potential rebound.

Longer-term investors may find some solace in the mildly bullish monthly KST and Dow Theory signals, which hint at possible stabilisation if sector conditions improve. However, the prevailing technical trend remains negative, and any recovery is likely to be gradual.

Given the mixed signals and recent downgrade to Strong Sell, investors should closely monitor key support levels around ₹25 and the 52-week low of ₹23.20. A sustained break below these levels could trigger further selling, while a rebound above daily moving averages might signal early signs of recovery.

Comparative Performance and Historical Returns

Examining Trident’s returns relative to the Sensex reveals a nuanced picture. While the stock has outperformed the benchmark over five and ten years with returns of 84.40% and 482.45% respectively, recent performance has lagged. The one-year return of -5.55% contrasts sharply with the Sensex’s 10.44% gain, and the three-year return of -15.80% starkly underperforms the Sensex’s 38.28% growth.

This divergence underscores the challenges Trident faces in regaining investor confidence amid sectoral and macroeconomic headwinds. The stock’s recent volatility and technical deterioration further complicate the outlook, suggesting that investors should weigh long-term fundamentals against short-term risks.

Conclusion

Trident Ltd’s recent technical parameter changes highlight a clear shift towards bearish momentum, with multiple indicators confirming a weakening trend. The downgrade to a Strong Sell rating by MarketsMOJO reflects these developments and the company’s underperformance relative to the broader market.

While some monthly indicators hint at potential stabilisation, the prevailing technical signals caution investors to remain vigilant. The stock’s proximity to its 52-week low and bearish moving averages suggest limited upside in the near term, making it a challenging proposition for momentum-driven investors.

Ultimately, Trident’s technical profile demands careful monitoring, with a focus on key support and resistance levels. Investors seeking exposure to the Garments & Apparels sector may consider alternative stocks with stronger momentum and more favourable technical setups.

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