Technical Trend and Momentum Shift
After a period of consolidation, HDFC AMC’s technical trend has transitioned to mildly bullish, signalling a potential uptrend in the near term. The stock closed at ₹2,725.50 on 24 Feb 2026, up 0.45% from the previous close of ₹2,713.40. Intraday, it touched a high of ₹2,770.00 and a low of ₹2,712.65, indicating some volatility but overall positive momentum. The 52-week high stands at ₹2,965.00, while the 52-week low is ₹1,762.53, highlighting a significant range of price movement over the past year.
MACD and RSI Analysis
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD is bullish, suggesting that momentum is building and the stock could continue to gain. However, the monthly MACD remains mildly bearish, indicating some caution for longer-term investors. This divergence suggests that while short-term traders may find opportunities, the broader trend requires further confirmation.
The Relative Strength Index (RSI) does not currently signal overbought or oversold conditions on either the weekly or monthly charts. This neutral RSI reading implies that the stock is not yet stretched in either direction, leaving room for further price movement without immediate risk of a reversal due to momentum exhaustion.
Moving Averages and Bollinger Bands
Daily moving averages are mildly bearish, reflecting some short-term selling pressure or consolidation. This contrasts with the weekly and monthly Bollinger Bands, which are both bullish. The Bollinger Bands’ expansion on these timeframes suggests increasing volatility with an upward bias, often a precursor to a breakout or sustained rally. Investors should watch for price action near the upper band as a potential signal of strength or an overextension.
Additional Technical Indicators
The Know Sure Thing (KST) indicator is mildly bullish on a weekly basis and bullish monthly, reinforcing the positive momentum narrative. Conversely, Dow Theory analysis shows no clear trend weekly and a mildly bearish stance monthly, adding a layer of complexity to the technical outlook. On-Balance Volume (OBV) is neutral weekly but bullish monthly, indicating that volume trends support the price gains over the longer term.
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Performance Comparison with Sensex
HDFC AMC’s returns have outpaced the Sensex significantly over multiple time horizons. Over the past week, the stock declined by 4.15%, while the Sensex was essentially flat with a 0.02% gain. However, over the last month, HDFC AMC surged 12.02%, compared to the Sensex’s 2.15% rise. Year-to-date, the stock is up 2.01%, outperforming the Sensex which is down 2.26%. The one-year return is particularly impressive at 44.21%, dwarfing the Sensex’s 10.60% gain.
Longer-term performance also favours HDFC AMC, with a three-year return of 206.37% versus the Sensex’s 39.74%, and a five-year return of 89.03% compared to the Sensex’s 67.42%. These figures underscore the company’s strong growth trajectory and market leadership within the capital markets sector.
MarketsMOJO Grade Upgrade and Implications
On 23 Feb 2026, MarketsMOJO upgraded HDFC AMC’s mojo grade from Hold to Buy, reflecting the improved technical and fundamental outlook. The current mojo score stands at 71.0, signalling a favourable risk-reward profile. The market cap grade remains at 1, indicating a large-cap status with strong liquidity and institutional interest.
This upgrade is supported by the mildly bullish technical trend and positive signals from key indicators such as weekly MACD, Bollinger Bands, and KST. The mixed signals from daily moving averages and monthly MACD suggest that investors should monitor price action closely for confirmation of sustained momentum.
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Investor Takeaways and Outlook
HDFC AMC’s technical parameters suggest a cautiously optimistic outlook. The weekly bullish MACD and Bollinger Bands, combined with a positive KST and monthly OBV, indicate that buying interest is building. However, the mildly bearish daily moving averages and monthly MACD counsel prudence, as the stock may face resistance near its 52-week high of ₹2,965.00.
Investors should watch for a sustained break above recent highs with volume confirmation to validate the bullish momentum. The neutral RSI readings provide room for further upside without immediate risk of overbought conditions. Given the strong relative performance versus the Sensex over the past year and beyond, HDFC AMC remains a compelling candidate for capital markets sector exposure.
In summary, the upgrade to a Buy rating by MarketsMOJO, supported by a mojo score of 71.0, reflects a positive shift in technical and fundamental factors. Market participants should consider this stock for portfolios seeking growth in the capital markets space, while remaining mindful of short-term volatility and mixed signals from some indicators.
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