Recent Price Movement and Market Context
The stock closed at ₹9,501.00 on 20 Jan 2026, down 0.67% from the previous close of ₹9,564.75. The day’s trading range was narrow, with a low of ₹9,501.00 and a high matching the previous close at ₹9,564.75. This price action reflects a cautious market sentiment amid broader sector volatility. The 52-week high stands at ₹12,499.95, while the 52-week low is ₹8,999.95, indicating the stock is trading closer to its lower annual range.
Technical Trend Shift: Sideways to Mildly Bearish
Technical analysis reveals a shift in trend from sideways to mildly bearish on the daily moving averages. This suggests that short-term momentum is weakening, with the stock price struggling to sustain upward movement. The daily moving averages, which smooth out price fluctuations, have begun to slope downward, signalling potential selling pressure.
MACD Signals: Divergent Weekly and Monthly Outlooks
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced view. On a weekly basis, the MACD is mildly bullish, indicating some underlying positive momentum over the medium term. However, the monthly MACD is mildly bearish, reflecting longer-term caution. This divergence suggests that while short-term traders may find opportunities, longer-term investors should remain vigilant for potential downside risks.
RSI and Bollinger Bands: Neutral to Mildly Bullish Indicators
The Relative Strength Index (RSI) on both weekly and monthly charts shows no clear signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, leaving room for directional movement either way. Meanwhile, Bollinger Bands on the weekly chart are sideways, consistent with recent price consolidation, but on the monthly chart, they are mildly bullish, hinting at potential upward volatility in the longer term.
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Moving Averages and KST: Mixed Signals Across Timeframes
Daily moving averages indicate a mildly bearish trend, reinforcing the short-term caution. Conversely, the Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change calculations, is mildly bullish on the weekly timeframe but mildly bearish on the monthly. This split suggests that momentum may be building in the near term but faces headwinds over a longer horizon.
Dow Theory and On-Balance Volume (OBV) Insights
According to Dow Theory, the weekly chart shows no definitive trend, while the monthly chart is mildly bullish. This implies that the stock is in a consolidation phase weekly but may be poised for a longer-term uptrend. Unfortunately, On-Balance Volume (OBV) data is unavailable for both weekly and monthly periods, limiting volume-based momentum analysis.
Comparative Returns: Outperforming Sensex Over Longer Horizons
Despite recent short-term weakness, Benares Hotels Ltd has delivered impressive returns over extended periods. The stock’s 1-week return is -0.53%, slightly outperforming the Sensex’s -0.75%. Over one month, it gained 0.16% compared to the Sensex’s -1.98%, and year-to-date it is down 0.66% versus the Sensex’s -2.32%. However, over one year, the stock declined 4.70% while the Sensex rose 8.65%, indicating some recent underperformance.
Longer-term returns are strikingly positive: a 3-year return of 214.71% dwarfs the Sensex’s 36.79%, a 5-year return of 657.05% far exceeds the Sensex’s 68.52%, and a 10-year return of 744.53% significantly outpaces the Sensex’s 240.06%. These figures highlight the stock’s strong growth trajectory over time despite short-term volatility.
Mojo Score and Rating Update
Benares Hotels Ltd currently holds a Mojo Score of 41.0 with a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 22 Jul 2025. The Market Cap Grade is 4, reflecting its micro-cap status within the Hotels & Resorts sector. This upgrade signals a slight improvement in technical and fundamental outlook, but the overall sentiment remains cautious.
Investment Implications and Outlook
The mixed technical signals suggest that investors should approach Benares Hotels Ltd with measured caution. The mildly bearish daily moving averages and monthly MACD indicate potential downside risks, while weekly bullish signals from MACD and KST offer some optimism for short-term momentum. The neutral RSI and sideways Bollinger Bands imply that the stock is consolidating, awaiting a clearer directional catalyst.
Given the stock’s strong long-term returns relative to the Sensex, value-oriented investors may consider accumulating on dips, provided they monitor technical developments closely. Traders might exploit the weekly bullish momentum for tactical positions but should remain alert to the monthly bearish undertones.
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Sector and Industry Context
Benares Hotels Ltd operates within the Hotels & Resorts industry, a sector sensitive to economic cycles, travel trends, and consumer sentiment. The sector has faced headwinds due to global uncertainties and fluctuating demand patterns. The stock’s technical indicators reflect this environment, with consolidation and mixed momentum signals common among peers.
Investors should weigh sector dynamics alongside company-specific technicals. The stock’s recent downgrade from Strong Sell to Sell by MarketsMOJO suggests some stabilisation but not yet a definitive turnaround. Monitoring broader sector recovery and company fundamentals will be crucial for timing entries or exits.
Summary of Technical Indicators
To summarise the key technical signals:
- Trend: Shift from sideways to mildly bearish on daily moving averages
- MACD: Weekly mildly bullish; monthly mildly bearish
- RSI: Neutral on both weekly and monthly charts
- Bollinger Bands: Sideways weekly; mildly bullish monthly
- KST: Weekly mildly bullish; monthly mildly bearish
- Dow Theory: No weekly trend; mildly bullish monthly
- OBV: Data unavailable
This combination points to a stock in technical flux, with short-term momentum showing tentative strength but longer-term caution prevailing.
Conclusion
Benares Hotels Ltd’s technical momentum has shifted subtly, reflecting a complex interplay of bullish and bearish signals across multiple timeframes. While weekly indicators suggest some positive momentum, monthly signals urge prudence. The stock’s strong historical returns offer a compelling backdrop, but recent price action and technical grades counsel a cautious approach.
Investors should closely monitor moving averages and MACD crossovers for clearer trend confirmation. Those seeking exposure to the Hotels & Resorts sector may consider Benares Hotels Ltd as part of a diversified portfolio, balancing its micro-cap risks with its long-term growth potential.
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