Vardhman Textiles Ltd Shows Strong Technical Momentum Amid Sector Outperformance

Technical Momentum Shift and Price Action

The stock closed at ₹536.65 on 23 Feb 2026, marking a 2.60% increase from the previous close of ₹523.05. Intraday, it traded within a range of ₹510.95 to ₹539.55, nearing its 52-week high of ₹546.00. This proximity to the annual peak highlights the stock’s resilience and growing bullish sentiment among traders.

Over the past week, Vardhman Textiles outperformed the Sensex by a significant margin, delivering a 5.18% return compared to the benchmark’s modest 0.23%. The one-month return is even more impressive at 33.03%, dwarfing the Sensex’s 0.77% gain. Year-to-date, the stock has surged 22.87%, while the Sensex has declined by 2.82%, underscoring the company’s strong relative performance in a challenging market environment.

MACD and Moving Averages Confirm Bullish Outlook

The Moving Average Convergence Divergence (MACD) indicator is a key driver behind the bullish upgrade. Both weekly and monthly MACD readings are firmly bullish, indicating sustained upward momentum. The daily moving averages also support this trend, with the stock price consistently trading above its short-term and long-term averages, signalling strong buying interest.

This alignment of MACD and moving averages suggests that the stock is in a healthy uptrend, with momentum likely to continue unless disrupted by external factors. The bullish crossover in MACD further confirms that the momentum is gaining strength, attracting momentum traders and institutional investors alike.

Bollinger Bands and RSI: Mixed but Positive Signals

Bollinger Bands on both weekly and monthly charts are bullish, indicating that the stock price is trending towards the upper band, a sign of strength and potential breakout. This suggests that volatility is increasing in favour of the bulls, and the stock could see further upside if it sustains above the middle band.

However, the Relative Strength Index (RSI) on weekly and monthly timeframes currently shows no clear signal, hovering in a neutral zone. This neutrality implies that while the stock is not yet overbought, there is room for further gains before hitting resistance from overextension. Investors should monitor RSI closely for any signs of divergence or overbought conditions that might signal a short-term pullback.

On-Balance Volume and KST Indicators

The On-Balance Volume (OBV) indicator is bullish on both weekly and monthly charts, signalling that volume is confirming the price uptrend. This suggests that accumulation is taking place, with buyers stepping in at higher levels, reinforcing the positive price momentum.

Meanwhile, the Know Sure Thing (KST) indicator presents a mixed picture: weekly readings are bullish, but monthly KST remains mildly bearish. This divergence indicates some caution over the longer term, suggesting that while short-term momentum is strong, investors should remain vigilant for potential shifts in trend over the coming months.

Dow Theory and Market Sentiment

According to Dow Theory, the weekly trend is mildly bearish, contrasting with a mildly bullish monthly trend. This discrepancy highlights a transitional phase where short-term corrections or consolidations may occur before the longer-term uptrend resumes. Investors should consider this when planning entry or exit points, balancing the strong technical signals with the possibility of near-term volatility.

Vardhman Textiles’ current Mojo Score stands at 58.0, reflecting a Hold rating, upgraded from a previous Sell rating on 3 Feb 2026. This upgrade aligns with the technical improvements and suggests a cautious but optimistic stance from analysts. The company holds a Market Cap Grade of 3, indicating a mid-tier market capitalisation within its sector.

Long-Term Performance Outpaces Benchmark

Vardhman Textiles has demonstrated robust long-term returns, significantly outperforming the Sensex across multiple time horizons. Over the past year, the stock has delivered a 25.84% return compared to the Sensex’s 9.35%. Over three and five years, the stock’s returns of 72.47% and 140.48% respectively have more than doubled the benchmark’s 36.45% and 62.73% gains. Even on a decade-long basis, the stock’s 254.27% return slightly surpasses the Sensex’s 249.29%, underscoring its consistent value creation for shareholders.

Sector Context and Industry Positioning

Operating within the Garments & Apparels sector, Vardhman Textiles benefits from steady demand trends and evolving consumer preferences. The sector has faced headwinds from global supply chain disruptions and fluctuating raw material costs, yet Vardhman’s technical resilience and improving momentum suggest it is well-positioned to capitalise on sector recovery and growth opportunities.

Investors should note that while the technical indicators are largely positive, the mixed signals from KST and Dow Theory warrant a balanced approach. Monitoring volume trends and price action near key resistance levels, such as the 52-week high, will be critical in assessing the sustainability of the current bullish phase.

Investor Takeaway

Vardhman Textiles Ltd’s recent technical upgrades and strong price momentum present a compelling case for investors seeking exposure to the Garments & Apparels sector. The bullish MACD, moving averages, and Bollinger Bands indicate a favourable environment for further gains, supported by robust volume trends.

However, the neutral RSI and mixed signals from KST and Dow Theory suggest that investors should remain cautious and consider risk management strategies. The stock’s proximity to its 52-week high may invite profit-taking or short-term volatility, making it prudent to monitor technical levels closely.

Overall, the upgrade from Sell to Hold and the Mojo Score of 58.0 reflect a balanced outlook, with potential for upside tempered by the need for vigilance amid evolving market conditions. Long-term investors may find value in the stock’s consistent outperformance relative to the Sensex, while traders can capitalise on the current bullish momentum with appropriate stop-loss measures.

Conclusion

Vardhman Textiles Ltd is currently exhibiting a strong technical profile, with multiple indicators confirming a shift to a bullish trend. The stock’s impressive recent returns and positive volume dynamics reinforce this outlook. While some caution is warranted due to mixed longer-term signals, the overall technical landscape favours continued upward momentum in the near term. Investors should weigh these factors carefully when considering their positions in this Garments & Apparels sector stock.

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