CARE Ratings Ltd Technical Momentum Shifts Signal Mildly Bullish Outlook

Technical Trend Overview

CARE Ratings Ltd’s technical trend has evolved from a neutral sideways movement to a mildly bullish trajectory, reflecting improving investor sentiment. The stock closed at ₹1,625.00 on 17 Feb 2026, marking a modest day gain of 0.52% from the previous close of ₹1,616.60. The intraday range was ₹1,602.55 to ₹1,625.00, indicating some buying interest near the upper band.

Examining the weekly and monthly technical indicators reveals a mixed but generally positive picture. The weekly MACD is bullish, signalling upward momentum in the near term, while the monthly MACD remains mildly bearish, suggesting some caution over a longer horizon. Similarly, Bollinger Bands are bullish on both weekly and monthly charts, indicating the stock price is trending towards the upper volatility band, a sign of strength.

Momentum Indicators: MACD and RSI

The Moving Average Convergence Divergence (MACD) indicator on the weekly timeframe has crossed above its signal line, a classic bullish signal that often precedes upward price movement. This suggests that momentum is building in favour of buyers in the short term. However, the monthly MACD remains mildly bearish, reflecting some underlying longer-term pressure that investors should monitor.

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in a neutral zone. This indicates that the stock is neither overbought nor oversold, providing room for further price appreciation without immediate risk of a reversal due to exhaustion.

Moving Averages and Other Technical Signals

Daily moving averages present a mildly bearish stance, with short-term averages slightly below longer-term averages, suggesting some recent selling pressure. However, this is offset by weekly KST (Know Sure Thing) indicator which is bullish, signalling positive momentum over the medium term. The monthly KST remains mildly bearish, reinforcing the need for cautious optimism.

On balance, the On-Balance Volume (OBV) indicator shows no clear trend on the weekly chart but is bullish on the monthly chart, implying that accumulation may be occurring over the longer term despite short-term fluctuations.

Comparative Performance Against Sensex

CARE Ratings Ltd has outperformed the Sensex significantly over multiple timeframes, underscoring its strong fundamental and technical positioning. Year-to-date, the stock has gained 1.51%, while the Sensex declined by 2.28%. Over the past year, CARE Ratings surged 43.03%, vastly outperforming the Sensex’s 9.66% rise.

Longer-term returns are even more impressive, with a three-year gain of 141.13% compared to the Sensex’s 35.81%, and a five-year return of 232.99% versus the Sensex’s 59.83%. These figures highlight the stock’s resilience and growth potential within the capital markets sector.

Mojo Score and Rating Upgrade

CARE Ratings currently holds a Mojo Score of 64.0, reflecting a moderate level of confidence from MarketsMOJO’s proprietary scoring system. The company’s Mojo Grade was upgraded from Sell to Hold on 10 Feb 2026, signalling an improvement in technical and fundamental outlook. The Market Cap Grade stands at 3, indicating a mid-sized market capitalisation within the capital markets sector.

This upgrade suggests that while the stock is not yet a strong buy, it has moved out of a negative technical zone and is showing signs of stabilisation and potential upside. Investors should watch for further confirmation from daily moving averages and volume trends before committing to larger positions.

Sector and Industry Context

Operating within the capital markets sector, CARE Ratings benefits from a generally positive industry environment, supported by steady demand for credit rating services and increasing regulatory oversight. The sector’s performance often correlates with broader economic cycles, and the current mildly bullish technical signals align with expectations of moderate economic growth and financial market stability.

However, investors should remain mindful of sector-specific risks such as regulatory changes, credit market volatility, and macroeconomic uncertainties that could impact the company’s outlook.

Key Technical Levels to Watch

From a price perspective, CARE Ratings is trading well above its 52-week low of ₹1,057.65 but remains below its 52-week high of ₹1,964.80. The current price near ₹1,625.00 suggests a recovery phase, but the stock must break decisively above resistance levels near ₹1,700 to confirm a sustained uptrend.

Support levels around ₹1,600 and ₹1,580 will be critical in the short term to prevent a reversal back to bearish territory. The interplay between daily moving averages and weekly momentum indicators will provide further clarity on the stock’s direction.

Investor Takeaway

CARE Ratings Ltd’s recent technical momentum shift to a mildly bullish trend, supported by a bullish weekly MACD and Bollinger Bands, suggests that the stock is poised for potential gains in the near term. The upgrade from Sell to Hold by MarketsMOJO further reinforces this cautious optimism.

However, mixed signals from monthly indicators and daily moving averages advise prudence. Investors should monitor key support and resistance levels closely and consider the broader sector and macroeconomic environment before increasing exposure.

Long-term performance remains robust, with returns significantly outpacing the Sensex over one, three, and five-year periods, highlighting CARE Ratings as a resilient player in the capital markets space.

Overall, the stock presents a balanced risk-reward profile, suitable for investors with a moderate risk appetite seeking exposure to capital markets with improving technical momentum.

Outlook and Next Steps

Looking ahead, confirmation of a sustained uptrend will depend on the stock’s ability to maintain momentum above daily moving averages and break through resistance near ₹1,700. Positive developments in sector fundamentals or regulatory clarity could act as catalysts for further gains.

Conversely, a failure to hold support levels around ₹1,600 could trigger a technical pullback, warranting caution. Investors should also keep an eye on volume trends and broader market conditions to gauge the sustainability of the current momentum.

Summary

CARE Ratings Ltd is exhibiting a technical momentum shift from sideways to mildly bullish, supported by a bullish weekly MACD, positive Bollinger Bands, and an upgrade in Mojo Grade from Sell to Hold. While daily moving averages remain mildly bearish, the overall technical and fundamental backdrop suggests cautious optimism. The stock’s strong long-term returns relative to the Sensex further bolster its appeal, though investors should remain vigilant of key technical levels and sector risks.

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