The stock closed at ₹136.55, down from the previous close of ₹140.90, marking a day change of -3.09%. Intraday price fluctuations ranged between ₹135.70 and ₹142.00, indicating some volatility within the trading session. Over the past 52 weeks, Welspun Living's price has oscillated between a low of ₹105.00 and a high of ₹187.80, highlighting a broad trading range that investors should consider when analysing momentum and trend strength.
Examining the technical indicators, the Moving Average Convergence Divergence (MACD) presents a mixed picture. On a weekly basis, the MACD is mildly bullish, signalling some upward momentum in the short term. However, the monthly MACD remains mildly bearish, suggesting that longer-term momentum has yet to fully align with the recent short-term gains. This divergence between weekly and monthly MACD readings points to a potential consolidation phase or sideways movement in the near term.
The Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, currently shows no definitive signal on both weekly and monthly charts. This absence of a clear RSI signal implies that the stock is neither overbought nor oversold, reinforcing the notion of a sideways trend rather than a strong directional move.
Bollinger Bands, which measure volatility and potential price breakouts, also reflect this duality. The weekly Bollinger Bands indicate a mildly bullish stance, suggesting that price volatility may be expanding upwards in the short term. Conversely, the monthly Bollinger Bands lean mildly bearish, implying that the longer-term volatility may be contracting or that the stock is facing resistance at higher levels.
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Moving averages on the daily chart show a mildly bearish trend, indicating that recent price action has been below key moving average levels. This suggests some short-term selling pressure or a lack of upward momentum in daily trading sessions. Meanwhile, the Know Sure Thing (KST) indicator, which is a momentum oscillator based on rate-of-change calculations, is mildly bullish on the weekly timeframe but bearish on the monthly timeframe. This again highlights the divergence between short-term optimism and longer-term caution.
From a Dow Theory perspective, both weekly and monthly signals are mildly bullish. This theory, which analyses market trends through the relationship of highs and lows, suggests that the broader trend may still have some upward potential despite recent price softness. Supporting this, the On-Balance Volume (OBV) indicator is bullish on both weekly and monthly charts, indicating that volume trends are favouring accumulation rather than distribution. This volume behaviour can be a positive sign for future price stability or upward movement.
When comparing Welspun Living’s returns against the benchmark Sensex, the stock’s performance presents a mixed timeline. Over the past week, Welspun Living recorded a return of -1.90%, while the Sensex gained 0.85%. However, over the last month, the stock posted a 12.16% return, significantly outpacing the Sensex’s 1.47% gain. Year-to-date, Welspun Living shows a negative return of -13.33%, contrasting with the Sensex’s positive 9.02%. Over one year, the stock’s return stands at -8.08%, while the Sensex is up 9.81%. Longer-term performance reveals a different story: over three years, Welspun Living’s return is 76.65%, nearly double the Sensex’s 38.15%. Over five years, the stock’s return is 107.05%, surpassing the Sensex’s 95.38%. However, over a decade, the Sensex’s 229.64% return outpaces Welspun Living’s 76.74%, indicating that the stock has lagged the broader market over the very long term.
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In summary, Welspun Living’s technical indicators reveal a stock in transition. The shift from a mildly bearish trend to a sideways pattern is supported by mixed signals from MACD, RSI, Bollinger Bands, and moving averages. Short-term momentum indicators such as weekly MACD and KST lean towards mild bullishness, while monthly indicators suggest caution. The bullish volume trends indicated by OBV and the mildly bullish Dow Theory signals provide some optimism for the stock’s near-term prospects.
Investors should weigh these technical signals alongside the stock’s recent price volatility and relative performance against the Sensex. The divergence between short-term and long-term indicators suggests that Welspun Living may be consolidating before a clearer directional move emerges. Monitoring key support and resistance levels, particularly around the current price of ₹136.55 and the 52-week range, will be essential for assessing future momentum shifts.
Given the Garments & Apparels sector’s sensitivity to consumer demand and global supply chain dynamics, external factors may also influence Welspun Living’s price action. As such, a comprehensive approach that combines technical analysis with fundamental insights will be prudent for market participants considering exposure to this stock.
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