Home First Finance Falls 6.63%: 5 Key Factors Driving the Weekly Decline

23 February 2026: Technical Momentum Shifts to Sideways

Home First Finance began the week with a positive session, closing at Rs.1,173.95, up 1.43% from the previous close. The stock’s technical momentum shifted from mildly bearish to a sideways pattern, signalling a pause in downward pressure. Key indicators such as the weekly MACD turned mildly bullish, while the monthly MACD remained bearish, reflecting a nuanced outlook. The Relative Strength Index (RSI) hovered neutrally, and Bollinger Bands suggested mild bullishness, positioning the stock near the upper band on the weekly chart. Despite this, daily moving averages indicated a mildly bearish stance, highlighting mixed signals. The stock outperformed the Sensex, which rose 0.39% to 36,817.86.

24 February 2026: Mild Bearish Shift Amid Gains

On 24 February, the stock gained 2.63% to close at Rs.1,204.85, significantly outperforming the Sensex, which declined 0.78%. However, technical momentum shifted subtly from sideways to mildly bearish. Daily moving averages confirmed this mild bearish stance, while weekly MACD remained mildly bullish and monthly MACD turned bearish. Bollinger Bands maintained a bullish outlook, suggesting underlying strength despite the bearish trend shift. Volume surged to 33,189 shares, indicating increased trading interest amid the mixed signals.

25 February 2026: Momentum Shifts Back to Sideways with Strong Price Gains

The stock continued its upward trajectory on 25 February, closing at Rs.1,246.00, a 3.42% gain. This marked the week’s high and reflected a shift back to a sideways technical trend from the prior day’s mildly bearish stance. The stock traded within a wide intraday range, touching Rs.1,208.00. Weekly MACD and KST indicators remained mildly bullish, while monthly indicators stayed bearish, underscoring the ongoing divergence between short- and long-term momentum. Despite the strong price performance, On-Balance Volume (OBV) showed no clear trend, suggesting volume was not confirming the price moves decisively. The Sensex rose 0.41% to 36,679.75, underperforming the stock’s gains.

26 February 2026: Sharp Value Turnover Amid Profit Booking

The stock reversed sharply on 26 February, closing at Rs.1,176.25, down 5.60%. This decline followed a gap-down opening and heavy profit booking despite strong institutional interest. The day saw a massive volume of 1,37,657 shares traded, with a value turnover of ₹7,462 crores, underscoring the stock’s prominence. Delivery volumes surged 225.82% above the five-day average, signalling sustained institutional confidence despite short-term price weakness. The stock underperformed both the housing finance sector, which gained 0.40%, and the Sensex, which rose 0.19%. Technically, the stock remained above its 5-, 20-, 50-, and 100-day moving averages but below the 200-day average, indicating medium-term strength amid longer-term resistance.

27 February 2026: Intraday Low Hit Amid Price Pressure

On the final trading day, Home First Finance faced significant selling pressure, closing at Rs.1,080.65, down 8.13%. The stock hit an intraday low of Rs.1,097.65, marking a 6.68% drop from the prior close. This decline was sharper than the sector’s 5.26% underperformance and the Sensex’s 1.16% fall. The stock traded below all key moving averages, including the 200-day, signalling a bearish technical stance. The sharp decline extended a two-day losing streak, with the stock falling 11.91% over these sessions. Despite recent volatility, the company’s longer-term returns remain positive, outperforming the Sensex over one, three, and five years. The Mojo Score remains at 55.0 with a Hold rating, reflecting cautious sentiment amid the technical challenges.

Key Takeaways

Home First Finance’s week was characterised by a volatile price trajectory, with early gains driven by mildly bullish weekly technical indicators and strong relative performance versus the Sensex. However, the divergence between short-term bullishness and longer-term bearish signals, particularly the monthly MACD and KST, foreshadowed the sharp correction in the latter half of the week.

The surge in trading volumes and value turnover on 26 February highlighted intense market interest, while rising delivery volumes pointed to sustained institutional confidence despite price weakness. The stock’s failure to hold above key moving averages on 27 February and the breach of the 200-day average underscored a shift to bearish technical conditions.

Despite the recent pullback, Home First Finance’s longer-term returns remain robust, significantly outperforming the Sensex over one, three, and five years. The current Mojo Score of 55.0 and Hold rating reflect a cautious stance amid mixed technical signals and sector sensitivities.

Investors should monitor key support levels and volume trends closely, as the stock navigates this technical crossroads. The housing finance sector’s sensitivity to interest rates and regulatory changes adds further complexity to the outlook.

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