Key Events This Week
23 Feb: Stock declined 1.64% amid downgrade to Sell rating
24 Feb: Technical momentum shifted to mildly bearish with mixed indicator signals
26 Feb: Weekly technical trend improved to mildly bullish despite mixed signals
27 Feb: Week ended with a slight dip of 0.44% closing at ₹1,607.45
23 February 2026: Downgrade to Sell Triggers Price Drop
CARE Ratings Ltd opened the week on a cautious note, closing at ₹1,582.90, down ₹26.35 or 1.64% from the previous close of ₹1,609.25. This decline coincided with MarketsMOJO’s downgrade of the stock from a Hold to a Sell rating, citing technical weakness and expensive valuation as primary concerns. The downgrade reflected a shift in technical indicators, including a mildly bearish MACD on weekly and monthly charts and bearish RSI on the monthly timeframe, signalling increasing downward momentum.
Despite steady financial performance with consistent quarterly growth and strong liquidity, the stock’s premium valuation—highlighted by a Price to Book ratio of 5.5 and a PEG ratio of 0.8—raised caution. The stock’s price action on this day reflected these concerns, with the broader Sensex rising 0.39% to 36,817.86, underscoring the stock’s relative underperformance.
24 February 2026: Technical Momentum Shifts Amid Mixed Signals
The following day, CARE Ratings rebounded to close at ₹1,602.60, gaining ₹19.70 or 1.24%, despite the Sensex falling 0.78% to 36,530.09. This price recovery occurred amid a complex technical landscape where momentum oscillators and moving averages presented mixed signals. The stock’s technical trend shifted from sideways to mildly bearish, supported by a bearish MACD and monthly RSI, but offset by neutral weekly RSI and bullish weekly KST oscillator.
Daily moving averages remained bearish, indicating short-term downward pressure, while Bollinger Bands suggested sideways weekly movement but mildly bullish monthly trends. On-Balance Volume readings were neutral weekly but bullish monthly, hinting at longer-term accumulation despite short-term volatility. This nuanced technical picture contributed to the stock’s volatile price action and cautious investor sentiment.
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25-26 February 2026: Gradual Technical Improvement and Price Stability
On 25 February, the stock continued its modest upward trajectory, closing at ₹1,612.65, up ₹10.05 or 0.63%, while the Sensex gained 0.41% to 36,679.75. The following day, 26 February, CARE Ratings edged higher by ₹1.95 or 0.12% to ₹1,614.60, outperforming the Sensex’s 0.19% gain to 36,748.49. This period marked a subtle shift in technical momentum from mildly bearish to mildly bullish on weekly charts, supported by a bullish MACD and Bollinger Bands on weekly and monthly timeframes.
However, daily moving averages remained mildly bearish, indicating that short-term momentum had yet to fully confirm the weekly bullish trend. The RSI remained neutral, and the KST oscillator presented a bullish weekly but mildly bearish monthly stance, reflecting ongoing uncertainty. Volume analysis showed a mildly bearish On-Balance Volume weekly but bullish monthly, suggesting cautious accumulation by institutional investors.
This technical evolution was accompanied by a relatively narrow intraday price range and moderate volatility, signalling consolidation near the upper half of the stock’s 52-week range.
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27 February 2026: Week Ends Slightly Lower Amid Broader Market Weakness
The week concluded with CARE Ratings closing at ₹1,607.45, down ₹7.15 or 0.44% from the previous day’s close, while the Sensex fell 1.16% to 36,322.56. This modest decline capped a week of mixed price action and technical signals. The stock’s weekly performance of -0.11% contrasted with the Sensex’s sharper 0.96% fall, indicating relative resilience despite the downgrade and technical caution.
Throughout the week, CARE Ratings’ price fluctuated within a range of ₹1,582.90 to ₹1,614.60, reflecting investor uncertainty amid valuation concerns and evolving technical momentum. The stock remains well below its 52-week high of ₹1,964.80 but comfortably above its 52-week low of ₹1,057.65, positioning it in the mid-to-upper segment of its annual trading range.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-23 | Rs.1,582.90 | -1.64% | 36,817.86 | +0.39% |
| 2026-02-24 | Rs.1,602.60 | +1.24% | 36,530.09 | -0.78% |
| 2026-02-25 | Rs.1,612.65 | +0.63% | 36,679.75 | +0.41% |
| 2026-02-26 | Rs.1,614.60 | +0.12% | 36,748.49 | +0.19% |
| 2026-02-27 | Rs.1,607.45 | -0.44% | 36,322.56 | -1.16% |
Key Takeaways
Valuation and Technical Concerns Dominate: The downgrade to a Sell rating reflects growing caution due to expensive valuation metrics and deteriorating technical indicators. Despite steady financial growth and strong liquidity, the stock’s premium pricing at a P/B of 5.5 and PEG of 0.8 raises questions about upside potential.
Mixed Technical Momentum: The week saw a shift from sideways to mildly bearish technical trends, followed by a tentative move to mildly bullish momentum on weekly charts. Key oscillators such as MACD and KST presented conflicting signals across timeframes, while moving averages remained cautiously bearish on daily charts.
Relative Resilience vs Sensex: CARE Ratings marginally outperformed the Sensex’s 0.96% decline with a 0.11% weekly fall, indicating some defensive qualities amid broader market weakness. The stock’s position near the mid-to-upper range of its 52-week price band suggests consolidation rather than a decisive trend.
Institutional Backing and Quality: High institutional ownership at 54.3% and consistent quarterly results underpin the company’s operational quality, though these strengths have not fully offset valuation and technical headwinds.
Volume and Momentum Divergence: On-Balance Volume trends show accumulation on monthly charts but caution weekly, highlighting the importance of monitoring volume alongside price action for clearer signals.
Conclusion
CARE Ratings Ltd’s week was characterised by a complex interplay of valuation concerns, technical momentum shifts, and steady financial fundamentals. The downgrade to a Sell rating by MarketsMOJO underscores the cautious stance warranted by expensive valuation and emerging bearish technical signals. While the stock demonstrated relative resilience against the Sensex’s broader decline, mixed momentum indicators and daily moving averages suggest that near-term volatility and uncertainty persist.
Investors should closely monitor upcoming technical developments, particularly MACD, RSI, and moving averages across multiple timeframes, alongside quarterly financial results, to better gauge the stock’s trajectory. The current Mojo Score of 48.0 and Sell grade reflect a prudent approach amid these mixed signals. CARE Ratings remains a stock with strong historical outperformance but faces challenges in sustaining momentum in the near term.
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