CARE Ratings Ltd Technical Momentum Shifts Amid Mixed Indicator Signals

Technical Trend Overview and Price Movement

CARE Ratings Ltd, currently trading at ₹1,582.80, has seen its price decline by 1.64% on 24 Feb 2026, closing below the previous day’s ₹1,609.25. The stock’s intraday range was between ₹1,580.00 and ₹1,625.60, reflecting some volatility but a clear downward bias. The 52-week high stands at ₹1,964.80, while the low is ₹1,057.65, indicating a wide trading band over the past year.

The technical trend has shifted from a sideways pattern to mildly bearish, signalling a potential weakening in price momentum. This is corroborated by the daily moving averages, which currently exhibit a bearish alignment, suggesting that short-term price action is under pressure. The moving averages’ bearish stance often indicates that sellers are gaining control, and unless reversed, the stock may face further downside.

MACD and RSI Signals: Divergent Timelines

The Moving Average Convergence Divergence (MACD) indicator presents a mildly bearish signal on both weekly and monthly charts. This suggests that momentum is waning over medium and longer-term horizons. The MACD histogram has shown shrinking positive bars recently, indicating a loss of bullish momentum and a potential for further declines if the signal line crosses below the MACD line decisively.

Relative Strength Index (RSI) readings provide a more nuanced picture. On the weekly timeframe, the RSI is neutral, offering no clear directional signal. However, the monthly RSI is bearish, indicating that the stock has been losing strength over the past several weeks. An RSI below 50 on the monthly chart typically signals that sellers are dominant, which aligns with the MACD’s mildly bearish outlook.

Bollinger Bands and KST: Mixed Technical Landscape

Bollinger Bands on the weekly chart show a sideways movement, implying that price volatility has been contained within a narrow range recently. This contrasts with the monthly Bollinger Bands, which are mildly bullish, suggesting that over a longer timeframe, the stock may still have some upward potential or at least a stabilising price base.

The Know Sure Thing (KST) indicator adds further complexity. Weekly KST readings are bullish, signalling short-term positive momentum, while the monthly KST is mildly bearish, reflecting longer-term caution. This divergence between short and long-term momentum indicators highlights the stock’s current indecision and the potential for volatility in the near term.

Volume and Dow Theory Insights

On-Balance Volume (OBV) analysis shows no clear trend on the weekly chart, but a bullish trend on the monthly chart. This suggests that while recent trading volumes have not decisively favoured buyers or sellers, the longer-term accumulation phase remains intact. According to Dow Theory, the weekly trend is mildly bullish, but the monthly trend shows no clear direction, reinforcing the mixed signals from other technical tools.

Comparative Returns and Market Context

CARE Ratings Ltd’s price momentum must be viewed in the context of its relative performance against the Sensex. Over the past week, the stock has underperformed, declining by 2.24% compared to the Sensex’s marginal 0.02% gain. However, over one month, CARE Ratings has posted a modest 0.82% gain, lagging behind the Sensex’s 2.15% rise.

Year-to-date, the stock is down 1.13%, though this is better than the Sensex’s 2.26% decline. Over longer horizons, CARE Ratings has significantly outperformed the benchmark, delivering 31.18% returns over one year versus 10.60% for the Sensex, and an impressive 142.95% over three years compared to 39.74% for the index. Even over five years, the stock’s 232.10% gain dwarfs the Sensex’s 67.42% rise, underscoring its strong fundamental and market position despite recent technical weakness.

Mojo Score Downgrade and Market Capitalisation

MarketsMOJO has recently downgraded CARE Ratings Ltd’s Mojo Grade from Hold to Sell as of 23 Feb 2026, reflecting the deteriorating technical outlook. The current Mojo Score stands at 48.0, which is below the threshold for a neutral or positive rating. The Market Cap Grade is 3, indicating a mid-tier capitalisation within the capital markets sector, which may limit liquidity and influence price volatility.

This downgrade aligns with the technical indicators signalling a shift towards bearishness, particularly on daily and monthly timeframes. Investors should note that while the long-term fundamentals remain robust, the near-term technical signals warrant caution.

Moving Averages and Short-Term Outlook

The daily moving averages are firmly bearish, with the short-term averages positioned below the longer-term ones. This configuration typically signals that the stock is in a downtrend and may continue to face selling pressure unless a reversal occurs. The bearish moving averages also suggest that any rallies may be met with resistance near these average levels.

Given the mixed signals from weekly and monthly indicators, the short-term outlook appears more vulnerable, while the medium to long-term trend remains somewhat uncertain but leaning towards caution.

Investor Implications and Strategy

For investors, the current technical landscape of CARE Ratings Ltd suggests a need for prudence. The mildly bearish momentum and recent downgrade imply that accumulation at current levels carries risk, especially for short-term traders. However, the stock’s strong long-term returns and monthly bullish volume trends indicate that it remains a candidate for long-term investment, provided that investors are prepared for near-term volatility.

Monitoring key technical levels such as the 50-day and 200-day moving averages, as well as MACD crossovers and RSI thresholds, will be critical for timing entries and exits. Additionally, keeping an eye on sector performance and broader market trends will help contextualise CARE Ratings’ price action.

Conclusion: Navigating Mixed Signals in a Volatile Market

CARE Ratings Ltd’s recent technical parameter changes highlight a transition to a more cautious stance, with several indicators pointing to mildly bearish momentum in the short to medium term. While weekly and monthly signals diverge, the overall picture suggests that investors should be vigilant and consider the stock’s technical weaknesses alongside its strong historical performance.

Given the downgrade to a Sell rating by MarketsMOJO and the bearish daily moving averages, short-term traders may look to reduce exposure or wait for clearer bullish signals before re-entering. Long-term investors, meanwhile, should monitor the evolving technical landscape closely, balancing the stock’s attractive multi-year returns against the current technical headwinds.

Ultimately, CARE Ratings Ltd remains a stock with significant potential, but one that requires careful timing and risk management in the face of shifting momentum and mixed technical signals.

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