Universal Cables Ltd. Technical Momentum Shifts Amid Bearish Signals

Recent Price Movement and Market Context

Universal Cables closed at ₹681.50 on 17 Feb 2026, down 1.07% from the previous close of ₹688.90. The intraday range was between ₹660.75 and ₹703.75, reflecting heightened volatility. The stock remains well below its 52-week high of ₹1,007.00 but comfortably above its 52-week low of ₹408.10, indicating a wide trading band over the past year.

Comparing returns with the benchmark Sensex reveals a mixed picture. Over the past week and month, Universal Cables has underperformed significantly, with weekly and monthly returns of -7.62% and -7.57% respectively, against Sensex returns of -0.94% and -0.35%. Year-to-date, the stock has declined 23.23%, far exceeding the Sensex's modest 2.28% fall. However, over longer horizons, the stock has delivered impressive gains, with a 1-year return of 29.75% versus Sensex’s 9.66%, a 3-year return of 97.51% compared to 35.81%, and a remarkable 5-year return of 410.87% against 59.83% for the Sensex.

Technical Indicators Signal a Shift

The technical landscape for Universal Cables has shifted from neutral to mildly bearish, particularly on weekly charts. The Moving Average Convergence Divergence (MACD) indicator presents a bearish signal on the weekly timeframe, suggesting downward momentum, while the monthly MACD remains bullish, indicating that longer-term trends still hold some strength. This divergence between weekly and monthly MACD readings highlights a potential short-term correction within a longer-term uptrend.

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral zones. This suggests that the stock is neither overbought nor oversold, leaving room for further directional movement based on other indicators.

Bollinger Bands have turned bearish on both weekly and monthly charts, signalling increased volatility and a tendency for prices to move lower within the bands. This aligns with the recent price decline and suggests that the stock may face resistance near the upper band, with downside risk towards the lower band.

Moving Averages and KST Analysis

Daily moving averages provide a mildly bullish signal, indicating that short-term price action still retains some upward bias. However, this is tempered by the weekly and monthly Know Sure Thing (KST) indicators, which are mildly bearish. The KST, a momentum oscillator, suggests that the stock’s momentum is weakening on a broader timeframe, reinforcing the cautionary stance from other indicators.

Dow Theory assessments add further nuance: the weekly trend is mildly bearish, while the monthly trend shows no clear directional bias. This mixed picture underscores the importance of monitoring price action closely in the coming weeks to confirm whether the bearish momentum will persist or if a reversal is imminent.

Volume and On-Balance Volume (OBV) Trends

Volume analysis through the On-Balance Volume (OBV) indicator shows no clear trend on the weekly chart, but a mildly bearish signal on the monthly chart. This suggests that selling pressure may be gradually increasing over the medium term, potentially weighing on price performance if sustained.

Mojo Score and Grade Update

Universal Cables currently holds a Mojo Score of 40.0, reflecting a cautious outlook. The Mojo Grade was downgraded from Hold to Sell on 13 Feb 2026, signalling a deterioration in the stock’s technical and fundamental outlook. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers in the cables and electricals sector.

This downgrade aligns with the recent technical signals and price momentum shifts, suggesting that investors should exercise prudence and consider risk management strategies in their portfolios.

Long-Term Performance Versus Sector and Market

Despite recent weakness, Universal Cables has demonstrated exceptional long-term growth. Its 10-year return of 894.89% vastly outpaces the Sensex’s 259.08%, underscoring the company’s strong operational performance and market positioning within the cables and electricals sector. This long-term outperformance may provide some comfort to investors considering the current technical setbacks as potential buying opportunities on dips.

However, the recent shift to a mildly bearish technical trend suggests that short-term traders and momentum investors should remain cautious until clearer signs of trend reversal emerge.

Key Support and Resistance Levels

From a price perspective, the immediate support zone lies near ₹660, close to the day’s low, while resistance is observed near ₹704, the day’s high. Breaching these levels decisively could set the tone for the next directional move. A sustained break below ₹660 may confirm the bearish momentum, while a rebound above ₹704 could signal a recovery attempt.

Investor Takeaway

Universal Cables Ltd. presents a complex technical picture as of February 2026. While the long-term fundamentals and historical returns remain robust, recent technical indicators point to a shift towards bearish momentum in the short to medium term. The downgrade in Mojo Grade to Sell reinforces this cautious stance.

Investors should weigh the stock’s strong historical performance against the current technical signals. Those with a longer investment horizon may view recent weakness as an opportunity to accumulate, while short-term traders might prefer to wait for confirmation of trend reversal before initiating new positions.

Monitoring key technical indicators such as MACD, Bollinger Bands, and moving averages will be critical in the coming weeks to gauge whether Universal Cables can regain bullish momentum or if further downside is likely.

Sector Outlook and Comparative Positioning

The cables and electricals sector has faced headwinds amid fluctuating demand and input cost pressures. Universal Cables’ technical deterioration mirrors broader sector challenges, although its superior long-term returns highlight its relative strength. Investors should consider sector dynamics alongside company-specific technicals when making allocation decisions.

Conclusion

Universal Cables Ltd. is at a technical crossroads, with mixed signals across various timeframes. The mildly bearish weekly indicators caution against aggressive buying, while the bullish monthly MACD and strong historical returns suggest underlying resilience. This nuanced scenario calls for a balanced approach, combining technical analysis with fundamental insights to navigate the stock’s near-term volatility.

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