Universal Cables Ltd. Technical Momentum Shifts Signal Bullish Outlook

Technical Momentum and Price Action Overview

Universal Cables Ltd., a prominent player in the Cables - Electricals sector, closed at ₹888.55 on 31 Dec 2025, marking a 3.49% increase from the previous close of ₹858.60. The intraday range saw a low of ₹851.30 and a high of ₹898.75, reflecting heightened volatility but an overall upward bias. The stock remains below its 52-week high of ₹1,007.00 but comfortably above its 52-week low of ₹408.10, indicating a strong recovery trajectory over the past year.

The technical trend has upgraded from mildly bullish to bullish, signalling improved price momentum. This shift is corroborated by the daily moving averages which are firmly bullish, suggesting that short-term price averages are trending higher and supporting the current price level. The weekly MACD (Moving Average Convergence Divergence) indicator is bullish, reinforcing the positive momentum, while the monthly MACD also remains bullish, indicating sustained longer-term strength.

Mixed Signals from RSI and KST Indicators

While the weekly RSI (Relative Strength Index) currently shows no definitive signal, the monthly RSI remains bearish. This divergence suggests that although short-term momentum is positive, there may be some underlying caution or overextension on a longer timeframe. The KST (Know Sure Thing) indicator echoes this mixed sentiment, with a bullish weekly reading but a mildly bearish monthly stance. Such contrasts between weekly and monthly indicators often reflect transitional phases in stock momentum, where short-term optimism may be tempered by longer-term consolidation or profit-taking.

Bollinger Bands and On-Balance Volume (OBV) Confirm Uptrend

Bollinger Bands on the weekly chart are bullish, indicating that price volatility is expanding upwards and the stock is trading near the upper band, a classic sign of strength. On the monthly scale, Bollinger Bands are mildly bullish, suggesting a gradual but steady upward price movement over the medium term.

Volume analysis through OBV also supports the bullish narrative. Weekly OBV is mildly bullish, while monthly OBV is bullish, implying that buying pressure is increasing and volume is confirming the price advances. This volume-price relationship is critical for validating the sustainability of the current uptrend.

Comparative Returns and Market Context

Universal Cables Ltd. has outperformed the Sensex over multiple time horizons, underscoring its robust growth profile. Year-to-date (YTD) returns stand at 9.12%, slightly ahead of the Sensex’s 8.36%. Over the past year, the stock has delivered 6.67% returns compared to the Sensex’s 8.21%, reflecting some short-term lag but a strong recovery in recent months.

Longer-term performance is particularly impressive, with three-year returns at 198.12% versus the Sensex’s 39.17%, five-year returns at 542.02% compared to 77.34%, and a remarkable ten-year return of 982.94% against the Sensex’s 226.18%. These figures highlight Universal Cables’ sustained outperformance and resilience in the competitive electrical cables industry.

Dow Theory and Moving Averages Reinforce Bullish Outlook

According to Dow Theory, the weekly trend is mildly bullish, while the monthly trend shows no clear direction. This suggests that the stock is in a phase of accumulation or consolidation on a longer timeframe but is gaining momentum in the short term. Daily moving averages are bullish, indicating that recent price action is supported by positive short-term trends.

Such a combination often precedes a breakout or a sustained rally, provided that volume and momentum indicators continue to align positively.

Mojo Score Upgrade and Market Capitalisation Insights

MarketsMOJO has upgraded Universal Cables Ltd.’s Mojo Grade from Sell to Hold as of 20 Oct 2025, reflecting improved technical and fundamental conditions. The current Mojo Score stands at 63.0, signalling moderate confidence in the stock’s near-term prospects. The market capitalisation grade is 3, indicating a mid-sized market cap within its sector, which may appeal to investors seeking growth opportunities with manageable liquidity risk.

This upgrade aligns with the technical trend shift and positive momentum indicators, suggesting that the stock is entering a phase of renewed investor interest and potential price appreciation.

Investment Considerations and Outlook

Investors should note the mixed signals from monthly RSI and KST indicators, which counsel some caution regarding overbought conditions or potential short-term pullbacks. However, the strong weekly and daily technicals, combined with volume confirmation and a positive MACD, support a bullish outlook in the near term.

Given the stock’s historical outperformance relative to the Sensex and its current technical upgrades, Universal Cables Ltd. appears well-positioned to capitalise on sectoral growth trends and infrastructure demand in India. The stock’s resilience through market volatility and its improving technical profile make it a compelling candidate for investors with a medium to long-term horizon.

Summary

Universal Cables Ltd. has transitioned into a bullish technical phase, supported by strong MACD readings, bullish moving averages, and volume trends. While some monthly indicators suggest caution, the overall momentum favours upside potential. The stock’s impressive long-term returns and recent Mojo Grade upgrade further enhance its appeal. Investors should monitor key technical levels and volume patterns to gauge the sustainability of this uptrend amid evolving market conditions.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →