TVS Motor Company Ltd Technical Momentum Shifts Signal Bullish Outlook

Technical Trend Evolution and Momentum Analysis

Recent technical assessments reveal that TVS Motor Company Ltd’s trend has improved from mildly bullish to bullish, signalling increased investor confidence and potential for further price appreciation. The stock closed at ₹3,713.00 on 4 Feb 2026, up 1.85% from the previous close of ₹3,645.65, with intraday highs reaching ₹3,805.00. This price action reflects a strengthening upward momentum, nearing its 52-week high of ₹3,908.95, while comfortably above its 52-week low of ₹2,191.30.

The daily moving averages are firmly bullish, indicating that short-term price averages are trending higher, which often precedes sustained upward movement. This is complemented by the weekly Bollinger Bands, which have turned bullish, suggesting increased volatility with a positive bias and a potential breakout from recent consolidation phases.

MACD and RSI Signals: Mixed but Improving

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bearish, indicating some short-term caution among traders. However, the monthly MACD has turned bullish, reflecting stronger momentum over a longer horizon. This divergence suggests that while short-term fluctuations may persist, the broader trend is gaining strength.

Relative Strength Index (RSI) readings on both weekly and monthly charts currently show no definitive signal, hovering in neutral territory. This neutrality implies that the stock is neither overbought nor oversold, providing room for further upward movement without immediate risk of a reversal due to overextension.

Additional Technical Indicators Support Bullish Outlook

The Know Sure Thing (KST) indicator, which helps identify major price cycles, is mildly bearish on a weekly basis but bullish monthly, aligning with the MACD’s mixed signals. Meanwhile, the On-Balance Volume (OBV) indicator is mildly bullish weekly, suggesting that volume trends support price gains, although monthly OBV shows no clear trend.

Dow Theory analysis adds further context, with a mildly bullish weekly stance but no clear monthly trend, reinforcing the view that short-term momentum is improving while longer-term confirmation is still developing.

Long-Term Performance and Relative Strength

TVS Motor Company Ltd’s price performance over various time frames significantly outpaces the broader Sensex benchmark, underscoring its strong market position and investor appeal. Over the past one year, the stock has delivered a remarkable 40.03% return compared to Sensex’s 8.49%. The three-year and five-year returns are even more impressive at 258.52% and 475.88%, respectively, dwarfing the Sensex’s 37.63% and 66.63% gains over the same periods.

Over a decade, TVS Motor’s return stands at an extraordinary 1,191.70%, nearly five times the Sensex’s 245.70%, highlighting the company’s sustained growth trajectory and resilience in the automobile sector.

MarketsMOJO Rating Upgrade and Market Capitalisation Insights

Reflecting these positive developments, MarketsMOJO has upgraded TVS Motor Company Ltd’s Mojo Grade from Hold to Buy as of 6 Nov 2025, with a strong Mojo Score of 78.0. This upgrade signals improved confidence in the stock’s fundamentals and technical outlook. The company holds a Market Cap Grade of 1, indicating a large-cap status with robust market capitalisation metrics.

This rating upgrade aligns with the technical trend shift and the company’s solid price momentum, providing investors with a clear signal to consider the stock favourably within their portfolios.

Sector and Industry Context

Operating within the automobile sector and industry, TVS Motor Company Ltd benefits from favourable industry dynamics, including rising demand for two-wheelers and increasing penetration in rural and semi-urban markets. The company’s technical strength relative to sector peers further enhances its attractiveness, as it demonstrates superior price momentum and resilience amid sectoral fluctuations.

Investor Considerations and Outlook

Investors analysing TVS Motor Company Ltd should note the mixed signals from weekly MACD and KST indicators, which counsel some caution in the short term. However, the prevailing bullish signals on monthly charts, daily moving averages, and Bollinger Bands suggest that the stock is poised for further gains, especially if it can sustain above the ₹3,700 support level.

The neutral RSI readings imply that the stock is not currently overbought, allowing room for upward price movement without immediate risk of correction. Volume trends, as indicated by the mildly bullish weekly OBV, support the price appreciation, adding conviction to the bullish case.

Given the strong long-term returns and the recent upgrade in MarketsMOJO rating, TVS Motor Company Ltd appears well-positioned to capitalise on favourable sectoral trends and technical momentum. Investors with a medium to long-term horizon may find this an opportune entry point, while short-term traders should monitor weekly momentum indicators closely for signs of potential pullbacks.

Summary

In summary, TVS Motor Company Ltd’s technical landscape has shifted positively, with a bullish trend supported by daily moving averages, monthly MACD, and Bollinger Bands. Despite some short-term caution from weekly indicators, the overall momentum and strong relative performance against the Sensex underpin a constructive outlook. The MarketsMOJO upgrade to a Buy rating further validates this stance, making TVS Motor a compelling stock to watch within the automobile sector.

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