Relaxo Footwears rallies 14% as technicals turn bullish
India's Relaxo Footwears surged 14% to snap a losing streak, but investors must weigh the strong technical rebound against a grim multi-year track record.
Relaxo Footwears shares jumped 14% on Friday, snapping a three-day losing streak to trade at Rs 417 on the National Stock Exchange. The rally added nearly Rs 1,255 crore to the company’s market capitalisation, bringing the total valuation to Rs 10,390 crore. If sustained until the market close, this session will mark the stock’s best single-day performance in almost two months.
The sharp uptick was driven by robust buying interest emerging around the 200-day exponential moving average, supported by healthy trading volumes. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, pointed to the stock's chart structure as evidence of shifting momentum. “The stock continues to maintain a higher high–higher low structure and is trading above its key moving averages, reflecting a strong underlying trend,” he said.
Specific momentum metrics further reinforce this optimistic short-term view. “Momentum indicators have also turned constructive. The RSI has moved above the 60 mark, signalling renewed bullish momentum, while the widening gap between the DI+ and DI- lines suggests that buyers are firmly in control,” Shah added. He noted that while a brief period of sideways consolidation or profit booking is possible after such a rapid surge, the broader trend remains firmly positive.
Shah advised that the current pullback is likely to extend further, provided a key technical floor holds. “As long as the stock sustains above the Rs 365–360 support zone, the pullback is likely to extend further,” he said.
Long-term challenges persist
Despite the constructive technical signals, market professionals must weigh this bounce against a deeply troubled long-term track record. The stock suffered a brutal 55% decline from a 52-week high of Rs 526 in September of last year, eventually bottoming out at a 52-week low of Rs 236.50 in March.
Friday’s price of Rs 417 represents a robust 76% recovery from that March trough, translating to a 4% gain over the past week, a 12% gain over the past month, and a roughly 2% advance so far in 2026. However, investors considering new positions must acknowledge the stock's historical inability to sustain rallies. Over longer horizons, Relaxo Footwears has delivered negative returns of more than 20% over one year, 55% over three years, and 65% over five years. The current recovery offers traders a clear technical entry point, but the shares remain far from reversing their multi-year downward trajectory.
