Key Events This Week
2 Feb: Technical momentum shift to bearish; stock closes Rs.103.95 (-2.44%)
3 Feb: MarketsMOJO upgrades rating to Hold; stock rallies Rs.106.95 (+2.89%)
4 Feb: Technical momentum shifts to mildly bullish; stock closes Rs.109.30 (+2.20%)
5 Feb: Profit-taking leads to decline; stock closes Rs.107.50 (-1.65%)
6 Feb: Continued selling pressure; stock closes Rs.105.50 (-1.86%)
2 February: Bearish Technical Momentum Weighs on Edelweiss
On Monday, Edelweiss Financial Services Ltd opened the week under pressure, closing at Rs.103.95, down 2.44% from the previous Friday’s close of Rs.106.55. This decline came amid a notable shift in technical momentum, with key indicators signalling a transition from sideways trading to a mildly bearish outlook. The stock traded in a volatile range between Rs.99.10 and Rs.106.40 during the day, reflecting investor caution amid mixed signals from MACD, RSI, and moving averages.
The bearish technical stance was underscored by weekly and monthly MACD indicators turning negative, alongside contracting Bollinger Bands suggesting increased volatility. Despite the short-term daily moving averages offering mild support, the overall technical environment pointed to downside risks. This underperformance contrasted with the Sensex’s 1.03% decline, indicating relative weakness in Edelweiss’s price action.
3 February: MarketsMOJO Upgrades Rating to Hold, Stock Rebounds
Following the technical weakness, the stock rebounded sharply on 3 February, gaining 2.89% to close at Rs.106.95. This rally coincided with MarketsMOJO upgrading Edelweiss’s investment rating from Sell to Hold, reflecting an improved technical outlook despite recent financial headwinds. The upgrade was driven by mildly bullish daily moving averages and a shift in Dow Theory weekly signals, signalling potential near-term upward momentum.
However, the upgrade was tempered by ongoing challenges, including a 33.43% decline in net sales for Q2 FY25-26 and a significant loss before tax excluding other income. The company’s price-to-book ratio of 2.3 remains attractive relative to peers, supported by a substantial 24.13% institutional holding. This combination of technical improvement and fundamental caution shaped a balanced market view.
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4 February: Technical Momentum Shifts to Mildly Bullish
The positive momentum continued on 4 February, with the stock advancing 2.20% to close at Rs.109.30. This marked the week’s high and reflected a technical shift from mildly bearish to mildly bullish, supported by daily moving averages turning positive and On-Balance Volume (OBV) indicating accumulation on the weekly chart. The Dow Theory weekly indicator also shifted to mildly bullish, reinforcing the emerging optimism.
Despite these gains, longer-term momentum indicators such as weekly and monthly MACD and the Know Sure Thing (KST) oscillator remained bearish or mildly bearish, signalling that the stock was still in a consolidation phase. The Relative Strength Index (RSI) hovered in neutral territory, suggesting no immediate overbought conditions. The stock’s 52-week range of Rs.73.51 to Rs.123.50 remained a key reference for investors assessing resistance and support levels.
5 February: Profit-Taking Triggers Pullback
Profit-taking emerged on 5 February, with Edelweiss retreating 1.65% to close at Rs.107.50. This decline followed two days of gains and reflected cautious sentiment amid mixed technical signals. The Sensex also declined 0.53% on the day, indicating broader market weakness. Volume contracted to 62,792 shares, suggesting reduced buying interest.
The stock’s inability to sustain the Rs.109-plus levels highlighted resistance near the week’s high. Technical indicators remained mixed, with daily moving averages still mildly bullish but weekly momentum oscillators signalling caution. This pullback underscored the ongoing uncertainty in the stock’s near-term trajectory.
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6 February: Continued Selling Pressure Ends Week Lower
The week concluded with further selling pressure on 6 February, as the stock declined 1.86% to close at Rs.105.50. This final session’s modest loss capped a week of mixed price action, with the stock ending below its opening level of Rs.106.55. The Sensex, in contrast, closed slightly higher by 0.10%, underscoring the stock’s relative underperformance over the week.
Volume remained subdued at 58,361 shares, reflecting limited conviction among buyers. Technical indicators continued to present a mixed picture, with daily moving averages providing some support but longer-term momentum oscillators remaining cautious. The stock’s performance relative to the Sensex and its technical signals suggest a consolidation phase with potential volatility ahead.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.103.95 | -2.44% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.106.95 | +2.89% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.109.30 | +2.20% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.107.50 | -1.65% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.105.50 | -1.86% | 36,730.20 | +0.10% |
Key Takeaways
Positive Signals: The upgrade to Hold by MarketsMOJO on 3 February marked a technical improvement, with daily moving averages and weekly Dow Theory indicators turning mildly bullish. Institutional holdings remain strong at 24.13%, providing a degree of support. The stock’s attractive price-to-book ratio of 2.3 relative to peers suggests reasonable valuation.
Cautionary Signals: Despite midweek gains, longer-term momentum indicators such as weekly and monthly MACD and KST oscillators remain bearish or mildly bearish, indicating unresolved downside risks. Recent quarterly financial results showed a sharp decline in net sales and a significant loss before tax, highlighting fundamental challenges. The stock underperformed the Sensex over the week, closing lower amid profit-taking and subdued volume.
Overall, Edelweiss Financial Services Ltd is navigating a complex technical and fundamental environment. The mixed signals warrant a cautious stance, with investors advised to monitor key support levels near Rs.99-100 and resistance around Rs.110-113. Sustained moves beyond these levels will be critical to defining the stock’s next directional phase.
Conclusion
The week ending 6 February 2026 was characterised by a tug-of-war between bearish and bullish forces for Edelweiss Financial Services Ltd. Early technical weakness gave way to a midweek upgrade and price rally, only to be followed by profit-taking and a modest weekly loss of 0.99%. In contrast, the Sensex advanced 1.51%, underscoring the stock’s relative underperformance amid broader market gains.
The upgrade to a Hold rating and improved Mojo Score of 50.0 reflect a more balanced outlook, recognising both the company’s long-term strengths and near-term challenges. Technical indicators suggest emerging positive momentum, but persistent bearish signals and recent financial setbacks counsel prudence. Investors should watch for confirmation of trend strength through sustained price action and improved fundamental results before adopting a more bullish stance.
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