Chalet Hotels Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview and Price Movement

As of 18 Feb 2026, Chalet Hotels Ltd’s share price closed at ₹870.55, marking a modest increase of 0.87% from the previous close of ₹863.00. The stock traded within a range of ₹850.80 to ₹883.45 during the day, remaining well below its 52-week high of ₹1,080.00 but comfortably above the 52-week low of ₹643.65. This price action suggests a consolidation phase following a period of volatility.

The broader technical trend has shifted from outright bearish to mildly bearish, signalling a potential stabilisation but with caution warranted. The daily moving averages, a key gauge of short-term momentum, remain mildly bearish, indicating that while the stock is not in freefall, it has yet to establish a firm upward trajectory.

MACD and RSI: Divergent Signals

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD remains bearish, reflecting persistent downward momentum over the medium term. However, the monthly MACD has improved to mildly bearish, suggesting that longer-term selling pressure may be easing. This divergence between weekly and monthly MACD readings highlights a transitional phase where short-term bears still dominate but longer-term investors might be seeing value.

Relative Strength Index (RSI) readings on both weekly and monthly charts currently show no clear signal, hovering in neutral territory. This absence of an overbought or oversold condition implies that the stock is neither excessively pressured to the upside nor the downside, reinforcing the notion of a consolidation period.

Bollinger Bands and KST Indicate Caution

Bollinger Bands, which measure volatility and potential price extremes, are mildly bearish on the weekly scale and bearish on the monthly scale. This suggests that while short-term price swings are somewhat contained, the longer-term volatility remains skewed towards downside risk. The KST (Know Sure Thing) indicator aligns with this view, showing bearish momentum weekly and mildly bearish monthly, reinforcing the cautious stance among technical analysts.

Volume and Dow Theory Insights

On-Balance Volume (OBV) indicators for both weekly and monthly periods show no discernible trend, indicating that volume is not confirming any strong directional move. This lack of volume support often signals indecision among traders and investors.

Interestingly, Dow Theory assessments provide a mildly bullish weekly signal, suggesting some underlying strength in price action over the short term. However, the monthly Dow Theory reading remains neutral, indicating no clear long-term trend. This contrast further emphasises the stock’s current technical ambiguity.

Comparative Performance and Market Context

Chalet Hotels Ltd’s recent returns present a mixed but generally positive picture when compared with the broader Sensex index. Over the past week, the stock declined by 1.39%, slightly underperforming the Sensex’s 0.98% drop. The one-month return also lagged, with Chalet Hotels down 0.87% versus the Sensex’s modest 0.14% decline.

However, year-to-date performance has been resilient, with the stock posting a marginal gain of 0.02% while the Sensex fell 2.08%. More impressively, over longer horizons, Chalet Hotels has significantly outperformed the benchmark. The one-year return stands at 28.26% compared to the Sensex’s 9.81%, while the three-year and five-year returns are 140.98% and 406.13% respectively, dwarfing the Sensex’s 36.80% and 61.40% gains. This long-term outperformance underscores the company’s strong growth trajectory despite recent technical headwinds.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Chalet Hotels Ltd a Mojo Score of 42.0, reflecting a cautious stance on the stock’s prospects. The Mojo Grade was downgraded from Hold to Sell on 29 Dec 2025, signalling a deterioration in the company’s technical and fundamental outlook. The Market Cap Grade stands at 3, indicating a mid-tier valuation relative to peers in the Hotels & Resorts sector.

This downgrade aligns with the technical indicators’ mildly bearish signals and suggests that investors should approach the stock with prudence, particularly given the mixed momentum and absence of strong volume confirmation.

Implications for Investors and Outlook

The current technical landscape for Chalet Hotels Ltd suggests a period of consolidation with a cautious tilt. The mildly bearish moving averages and bearish weekly MACD imply that short-term momentum remains fragile. Meanwhile, neutral RSI readings and lack of volume trend confirmation indicate that the stock is not yet poised for a decisive breakout or breakdown.

Investors should weigh the stock’s strong long-term returns against the recent technical softness. The downgrade to a Sell grade by MarketsMOJO reflects concerns over near-term momentum, but the company’s historical outperformance and sector positioning in Hotels & Resorts may offer opportunities for patient investors.

Monitoring key technical levels such as the 50-day and 200-day moving averages, alongside MACD crossovers and Bollinger Band expansions, will be critical in assessing whether Chalet Hotels can regain bullish momentum or if further downside risks prevail.

In summary, Chalet Hotels Ltd currently inhabits a technical grey zone where neither bulls nor bears hold clear control. This nuanced scenario calls for careful analysis and readiness to adapt as new price and volume data emerge.

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