Chalet Hotels Ltd Sees Mixed Technical Signals Amid Price Momentum Shift

Price Momentum and Recent Performance

Chalet Hotels Ltd closed at ₹899.95 on 2 Jan 2026, up from the previous close of ₹870.35, marking a daily gain of 3.40%. The intraday range was ₹868.90 to ₹903.40, indicating some volatility but a positive bias. Over the past week, the stock has returned 3.29%, outperforming the Sensex which declined by 0.26% in the same period. Year-to-date, Chalet Hotels has gained 3.4%, marginally ahead of the Sensex’s flat return of -0.04%. However, the one-year return remains negative at -11.27%, contrasting sharply with the Sensex’s 8.51% gain.

Longer-term returns paint a more favourable picture, with a three-year return of 159.2% significantly outpacing the Sensex’s 40.02%, and a five-year return of 378.7% dwarfing the Sensex’s 77.96%. This divergence highlights the stock’s strong historical growth despite recent headwinds.

Technical Trend Shift: From Bearish to Mildly Bearish

Technical analysis reveals a nuanced shift in Chalet Hotels’ momentum. The overall technical trend has moved from bearish to mildly bearish, reflecting a tentative improvement but still cautionary stance. The downgrade in the Mojo Grade from Hold to Sell on 29 Dec 2025 underscores this cautious outlook, with the current Mojo Score at 48.0, indicating weak momentum.

MACD and Momentum Oscillators

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart, signalling that downward momentum still dominates in the short term. On the monthly chart, the MACD is mildly bearish, suggesting some easing of selling pressure but no clear bullish reversal yet. This divergence between weekly and monthly MACD readings points to a potential consolidation phase rather than a decisive trend change.

The Relative Strength Index (RSI) shows no clear signal on either weekly or monthly timeframes, hovering in a neutral zone. This lack of momentum extremes indicates the stock is neither overbought nor oversold, reinforcing the view of a sideways or mildly bearish consolidation.

Moving Averages and Bollinger Bands

Daily moving averages are mildly bearish, with the stock price hovering near key short-term averages but failing to decisively break above longer-term moving averages. This suggests resistance remains at higher levels, limiting upside potential in the near term.

Bollinger Bands present a mixed picture: weekly bands are mildly bearish, indicating some downward pressure and volatility expansion to the downside, while monthly bands are bullish, reflecting longer-term upward momentum and potential for a rebound. This contrast highlights the importance of monitoring multiple timeframes for a comprehensive view.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator remains bearish on the weekly chart and mildly bearish on the monthly chart, reinforcing the cautious stance on momentum. This suggests that while some short-term selling pressure persists, the longer-term trend may be stabilising.

Dow Theory readings provide a mildly bullish signal on the weekly timeframe, indicating that the broader market trend may be supportive, but no clear trend is established on the monthly timeframe. This divergence suggests that Chalet Hotels may benefit from general market strength but remains vulnerable to sector-specific or company-specific risks.

On-Balance Volume (OBV) is mildly bearish on the weekly chart and shows no clear trend on the monthly chart. This indicates that volume flow is not strongly supporting price advances, a warning sign for sustained upward momentum.

Valuation and Market Capitalisation Context

Chalet Hotels holds a Market Cap Grade of 3, reflecting a mid-tier market capitalisation within the Hotels & Resorts sector. This moderate size may limit liquidity and investor interest compared to larger peers, contributing to the stock’s volatile price action and mixed technical signals.

Its 52-week high of ₹1,080.00 and low of ₹643.65 show a wide trading range, with the current price near the upper third of this band. This positioning suggests some recovery from lows but also potential resistance near recent highs.

Implications for Investors

The downgrade to a Sell rating and the current technical landscape suggest that investors should exercise caution with Chalet Hotels Ltd. While short-term price gains and some mildly bullish monthly indicators offer hope for a rebound, the dominant weekly bearish signals and weak volume support caution against aggressive buying.

Investors should closely monitor key technical levels, particularly the 50-day and 200-day moving averages, for signs of a sustained breakout or breakdown. A decisive move above the 52-week high of ₹1,080.00 could signal renewed strength, while a fall below recent lows near ₹868.90 may confirm further downside risk.

Given the stock’s mixed signals and sector volatility, a balanced approach combining technical analysis with fundamental assessment is advisable. The Hotels & Resorts sector remains sensitive to macroeconomic factors such as travel demand, regulatory changes, and consumer sentiment, which could influence Chalet Hotels’ performance beyond technical trends.

Summary

Chalet Hotels Ltd’s recent price momentum shift is characterised by a complex blend of mildly bearish and bullish technical signals. The downgrade to a Sell rating reflects the prevailing caution amid mixed MACD, RSI, moving averages, and volume indicators. While the stock has outperformed the Sensex in the short term, longer-term returns remain subdued compared to historical gains. Investors should remain vigilant and consider both technical and fundamental factors before making investment decisions.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →