Welspun Living Ltd Faces Technical Momentum Shift Amid Bearish Indicators

Price Momentum and Recent Market Performance

Welspun Living’s current market price stands at ₹121.25, down from the previous close of ₹126.00, marking a day decline of 3.77%. The stock’s intraday range today was between ₹120.70 and ₹125.10, indicating some volatility within a relatively narrow band. Over the past week, the stock has declined by 1.94%, underperforming the Sensex which remained nearly flat with a marginal 0.01% gain. The one-month return paints a more concerning picture, with Welspun Living falling 10.35% compared to the Sensex’s modest 1.31% decline.

Year-to-date, the stock has lost 7.23%, while the broader market index has dipped 1.94%. Over the last year, Welspun Living’s performance has been particularly weak, with a 20.05% loss contrasting sharply against the Sensex’s robust 8.47% gain. However, the longer-term perspective reveals a more positive trend, with three- and five-year returns of 66.78% and 80.30% respectively, both comfortably outperforming the Sensex’s 39.07% and 70.43% gains. The ten-year return, however, lags significantly at 47.18% versus the Sensex’s 241.73%, highlighting the stock’s relative underperformance over the decade.

Technical Trend Shift: From Sideways to Mildly Bearish

Technically, Welspun Living has transitioned from a sideways trend to a mildly bearish stance. This shift is corroborated by several key indicators. The Moving Average Convergence Divergence (MACD) remains bearish on both weekly and monthly charts, signalling sustained downward momentum. The weekly MACD histogram continues to show negative values, while the monthly MACD line remains below its signal line, reinforcing the bearish outlook.

Meanwhile, the Relative Strength Index (RSI) offers a neutral perspective, with no clear signal on either the weekly or monthly timeframe. This suggests that the stock is neither overbought nor oversold, leaving room for potential directional movement but no immediate extremes.

Bollinger Bands and Moving Averages: Conflicting Signals

Bollinger Bands on both weekly and monthly charts are bearish, indicating that the stock price is trending towards the lower band, which often signals increased selling pressure. This aligns with the recent price declines and the overall bearish momentum.

Conversely, the daily moving averages present a mildly bullish picture. The stock price currently trades slightly above its short-term moving averages, suggesting some underlying support and potential for a short-term rebound. This divergence between daily and longer-term indicators highlights the stock’s technical complexity and the need for cautious interpretation.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator presents a mixed view: bullish on the weekly chart but bearish on the monthly. This suggests that while short-term momentum may be improving, the longer-term trend remains under pressure. Similarly, Dow Theory assessments indicate a mildly bearish weekly trend but a mildly bullish monthly trend, reinforcing the notion of short-term weakness amid longer-term resilience.

On-Balance Volume (OBV) analysis shows a mildly bearish trend on the weekly timeframe, indicating that volume flow is not strongly supporting price advances. The monthly OBV, however, shows no clear trend, suggesting a lack of conviction among market participants over the longer term.

Mojo Score and Market Capitalisation Grade

Welspun Living currently holds a Mojo Score of 31.0, categorised as a Sell rating. This represents an improvement from its previous Strong Sell grade, which was downgraded on 09 Oct 2025. The Market Cap Grade stands at 3, reflecting the company’s small-cap status within the Garments & Apparels sector. These ratings underscore the cautious stance investors should adopt, given the mixed technical signals and recent price weakness.

Valuation Context and Price Range

The stock’s 52-week high is ₹159.55, while the 52-week low is ₹105.00, placing the current price closer to the lower end of its annual range. This proximity to the low suggests potential support levels but also highlights the risk of further downside if bearish momentum persists. Investors should monitor whether the stock can sustain above the ₹120 mark, which appears to be a critical short-term support zone.

Sector and Industry Considerations

Operating within the Garments & Apparels sector, Welspun Living faces sector-specific challenges including fluctuating raw material costs, changing consumer preferences, and global supply chain disruptions. The sector has seen mixed performance recently, with some peers showing resilience while others struggle with margin pressures. Welspun Living’s technical deterioration relative to the Sensex and sector benchmarks suggests it is currently underperforming its industry cohort.

Investor Takeaway and Outlook

Welspun Living Ltd’s technical landscape is characterised by a blend of bearish momentum and mild bullish signals on shorter timeframes. The persistent bearish MACD and Bollinger Bands on weekly and monthly charts caution investors about potential further downside. However, the mildly bullish daily moving averages and weekly KST indicator hint at possible short-term support or a consolidation phase.

Given the stock’s recent downgrade from Strong Sell to Sell and its underperformance against the Sensex over multiple time horizons, investors should approach with caution. Those considering exposure may wish to wait for clearer confirmation of trend reversal or sustained bullish momentum before committing fresh capital. Conversely, existing shareholders should monitor key support levels closely and consider risk management strategies to mitigate potential losses.

In summary, Welspun Living Ltd remains a technically challenging stock with mixed signals that require careful analysis. The interplay of bearish and mildly bullish indicators suggests a period of uncertainty, making it essential for investors to stay vigilant and responsive to evolving market dynamics.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →