Recent Price Performance and Market Context
CARE Ratings closed at ₹1,548.90 on 27 Jan 2026, down 1.85% from the previous close of ₹1,578.15. The stock traded within a range of ₹1,548.90 to ₹1,592.05 during the day, remaining well below its 52-week high of ₹1,964.80 but comfortably above the 52-week low of ₹1,057.65. This price action reflects a cautious market sentiment amid broader sector volatility.
Comparatively, CARE Ratings has outperformed the Sensex over longer horizons, delivering a 23.67% return over the past year versus the Sensex’s 6.56%. Over three and five years, the stock’s returns have been particularly impressive at 140.23% and 213.64%, respectively, dwarfing the Sensex’s 33.80% and 66.82% gains. However, in the short term, the stock has lagged, with a 3.86% decline over the past week compared to the Sensex’s 2.43% drop.
Technical Trend Shift: From Sideways to Mildly Bearish
The technical trend for CARE Ratings has shifted from a sideways pattern to a mildly bearish one, signalling a potential change in momentum. This shift is corroborated by the daily moving averages, which currently indicate a bearish trend. The stock’s price has been trading below key moving averages, suggesting downward pressure in the near term.
On the weekly timeframe, the Moving Average Convergence Divergence (MACD) remains bullish, indicating some underlying strength. However, the monthly MACD has turned mildly bearish, reflecting a more cautious long-term outlook. This divergence between weekly and monthly MACD readings highlights the stock’s mixed momentum signals.
RSI and Bollinger Bands: Conflicting Signals
The Relative Strength Index (RSI) on the weekly chart currently shows no clear signal, hovering in a neutral zone that neither favours buyers nor sellers. Conversely, the monthly RSI is bearish, suggesting that the stock may be losing momentum over a longer timeframe.
Bollinger Bands on the weekly chart indicate a sideways movement, consistent with the recent consolidation phase. Meanwhile, the monthly Bollinger Bands are mildly bullish, implying that volatility could expand upwards in the medium term if buying interest returns.
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Momentum Indicators: KST and Dow Theory
The Know Sure Thing (KST) indicator presents a bullish outlook on both weekly and monthly charts, signalling potential upward momentum in the medium term. This contrasts with the Dow Theory readings, which are mildly bearish on the weekly timeframe but mildly bullish monthly. Such mixed signals suggest that while short-term caution is warranted, the stock may still have underlying strength to support a recovery.
Volume Analysis: On-Balance Volume (OBV)
Volume trends provide additional insight into the stock’s momentum. The OBV indicator is mildly bearish on the weekly chart, indicating that recent price declines have been accompanied by higher selling volume. However, the monthly OBV remains bullish, suggesting accumulation over the longer term. This divergence between short- and long-term volume trends underscores the complexity of the current technical setup.
Mojo Score and Ratings Update
CARE Ratings currently holds a Mojo Score of 48.0, reflecting a cautious stance in the capital markets sector. The Mojo Grade was downgraded from Hold to Sell on 23 Jan 2026, signalling a deterioration in the stock’s technical and fundamental outlook. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers.
These ratings align with the mixed technical signals observed, suggesting that investors should approach the stock with prudence and consider risk management strategies.
Investment Implications and Outlook
CARE Ratings’ technical profile is characterised by a blend of bullish and bearish signals across different timeframes and indicators. The daily moving averages and monthly RSI point to near-term weakness, while weekly MACD and KST indicators hint at potential medium-term strength. The stock’s strong long-term returns relative to the Sensex provide a solid fundamental backdrop, but recent price momentum suggests that a period of consolidation or correction may be underway.
Investors should monitor key support levels near ₹1,550 and resistance around ₹1,600 to gauge the stock’s next directional move. A sustained break below support could confirm the bearish trend, while a rebound above resistance may signal renewed buying interest.
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Conclusion: Navigating Mixed Signals with Caution
CARE Ratings Ltd’s recent technical developments reflect a nuanced momentum shift that warrants careful analysis. While some indicators suggest underlying strength, the prevailing mildly bearish trend and recent price declines caution against aggressive positioning. The downgrade to a Sell grade by MarketsMOJO further emphasises the need for vigilance.
For investors with a medium- to long-term horizon, the stock’s historical outperformance and monthly bullish indicators may offer opportunities, but short-term traders should be mindful of the bearish daily moving averages and monthly RSI. Monitoring evolving technical signals will be crucial to identifying a clear directional bias in the coming weeks.
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