EIH Ltd. Technical Momentum Shifts Amid Bearish Sentiment

Current Price Action and Market Context

As of 24 Feb 2026, EIH Ltd. closed at ₹323.75, down 0.83% from the previous close of ₹326.45. The stock traded within a range of ₹321.55 to ₹329.60 during the day, remaining closer to its 52-week low of ₹304.95 than its high of ₹434.35. This price behaviour reflects a subdued market sentiment amid broader sectoral challenges.

Comparatively, the Sensex has shown modest gains over recent periods, with a 1-month return of 2.15% and a year-to-date (YTD) return of -2.26%. EIH Ltd. underperformed the benchmark in the short term, posting a 1-week return of -1.95% and a YTD return of -12.00%. However, the stock’s long-term returns remain impressive, with a 5-year gain of 234.11% versus Sensex’s 67.42%, and a 3-year return of 96.81% compared to the Sensex’s 39.74%.

Technical Trend Analysis: From Mildly Bearish to Bearish

The technical trend for EIH Ltd. has shifted from mildly bearish to outright bearish, signalling increased downside risk. This transition is corroborated by multiple technical indicators across different time frames.

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart and mildly bearish on the monthly chart, indicating persistent selling pressure in the medium term. The Relative Strength Index (RSI) presents a mixed picture: while the weekly RSI shows no clear signal, the monthly RSI is bullish, suggesting some underlying strength over a longer horizon.

Bollinger Bands also reflect bearish tendencies on the weekly scale and mildly bearish on the monthly scale, implying that price volatility is skewed towards the downside in the near term. Daily moving averages reinforce this bearish outlook, with the stock trading below key averages, signalling a lack of upward momentum.

Additional Technical Indicators Confirm Bearish Momentum

The Know Sure Thing (KST) oscillator, a momentum indicator, is bearish on the weekly chart and mildly bearish on the monthly chart, reinforcing the negative momentum in the stock’s price action. Dow Theory assessments align with this view, showing mildly bearish signals on both weekly and monthly time frames.

On-Balance Volume (OBV), which measures buying and selling pressure, shows no clear trend on the weekly chart but is bullish on the monthly chart. This divergence suggests that while short-term volume does not favour the bulls, longer-term accumulation may be occurring, offering a nuanced perspective on investor behaviour.

Mojo Score and Grade Update

MarketsMOJO’s proprietary scoring system has downgraded EIH Ltd. from a Hold to a Sell rating as of 1 Jan 2026, reflecting the deteriorating technical and fundamental outlook. The current Mojo Score stands at 38.0, with a Mojo Grade of Sell, down from the previous Hold rating. The Market Cap Grade remains low at 3, indicating limited market capitalisation strength relative to peers.

This downgrade is consistent with the technical signals and recent price underperformance, signalling investors to exercise caution and consider risk management strategies.

Sectoral and Industry Context

Within the Hotels & Resorts sector, EIH Ltd. faces headwinds from subdued travel demand and competitive pressures. The sector itself has shown mixed technical signals, with many peers also exhibiting bearish momentum. This environment adds to the challenges for EIH Ltd. to regain upward price momentum in the near term.

Investment Implications and Outlook

Investors should note that EIH Ltd.’s technical indicators collectively point to a bearish momentum in the short to medium term. The stock’s failure to sustain levels above daily moving averages and the bearish MACD on weekly charts suggest that further downside cannot be ruled out.

However, the bullish monthly RSI and OBV hint at some underlying strength, possibly reflecting longer-term investor confidence or accumulation. This dichotomy suggests that while short-term traders may face headwinds, long-term investors might find value if the stock stabilises near its 52-week lows.

Given the downgrade to a Sell rating by MarketsMOJO and the current Mojo Score of 38.0, a cautious approach is warranted. Investors should monitor key support levels around ₹305 and watch for any reversal signals in momentum indicators before considering fresh positions.

Comparatively, EIH Ltd.’s long-term outperformance relative to the Sensex remains a positive factor, with 5-year returns of 234.11% versus the benchmark’s 67.42%. This track record underscores the company’s resilience and potential for recovery when market conditions improve.

Summary of Key Technical Metrics

• MACD: Weekly Bearish, Monthly Mildly Bearish
• RSI: Weekly No Signal, Monthly Bullish
• Bollinger Bands: Weekly Bearish, Monthly Mildly Bearish
• Moving Averages: Daily Bearish
• KST: Weekly Bearish, Monthly Mildly Bearish
• Dow Theory: Weekly & Monthly Mildly Bearish
• OBV: Weekly No Trend, Monthly Bullish

These indicators collectively suggest a predominance of bearish momentum in the near term, tempered by some longer-term bullish signals.

Conclusion

EIH Ltd. is currently navigating a challenging technical landscape marked by bearish momentum across multiple indicators. While the stock’s long-term fundamentals and historical returns remain robust, the immediate outlook is clouded by downward pressure and a recent downgrade in rating. Investors should remain vigilant, balancing short-term risks with the potential for longer-term recovery in the Hotels & Resorts sector.

Careful monitoring of technical signals and sector developments will be essential for making informed investment decisions regarding EIH Ltd. in the coming months.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today