Honasa Consumer Ltd Gains 3.18%: 4 Key Technical and Fundamental Shifts This Week

2 February: Upgrade to Hold on Improved Fundamentals and Technicals

MarketsMOJO upgraded Honasa Consumer Ltd’s mojo grade from Sell to Hold on 1 February 2026, reflecting a notable improvement in the company’s fundamentals and technical outlook. This upgrade was driven by strong quarterly financial results, including a 179.33% year-on-year surge in operating profit and a 112.8% increase in profit after tax (PAT) to ₹39.23 crores. The company’s return on capital employed (ROCE) also reached a recent high of 12.95%, signalling efficient capital utilisation.

Technically, the stock’s momentum shifted from outright bearish to mildly bearish, with indicators such as the weekly MACD remaining bearish but showing signs of stabilisation. The Relative Strength Index (RSI) hovered in neutral zones, and Bollinger Bands suggested reduced volatility. Promoter confidence strengthened as promoters increased their stake by 0.57% to 35.54%, reinforcing positive sentiment.

On the trading day, the stock closed at ₹275.20, down 0.43%, while the Sensex declined 1.03%, indicating relative resilience despite the broader market weakness.

3 February: Technical Momentum Deteriorates to Bearish

On 3 February, Honasa Consumer Ltd’s technical momentum weakened, shifting from mildly bearish to outright bearish. The stock closed at ₹277.55, up 0.85%, while the Sensex surged 2.63%, indicating the stock underperformed the broader market rally. Daily moving averages remained bearish, and the Know Sure Thing (KST) indicator turned bearish on the weekly chart, signalling increased selling pressure.

Despite this, the weekly MACD retained a mildly bullish stance, and the RSI remained neutral, suggesting that while short-term momentum was negative, medium-term indicators showed some underlying strength. Bollinger Bands indicated sideways movement, reflecting consolidation amid volatility. The stock’s one-year return of 20.11% continued to outpace the Sensex’s 5.37%, underscoring resilience amid technical challenges.

4 February: Momentum Shifts Back to Mildly Bearish with Signs of Stabilisation

On 4 February, the stock’s technical momentum improved slightly, moving back to a mildly bearish outlook. Honasa Consumer Ltd closed at ₹277.55, unchanged from the previous day, while the Sensex gained 0.37%. The weekly MACD remained bearish, but the monthly MACD was inconclusive, suggesting a potential stabilisation phase.

RSI readings stayed neutral, and Bollinger Bands on the weekly chart showed sideways movement, indicating reduced volatility. The Dow Theory assessment pointed to a mildly bearish weekly trend but no clear monthly direction. On-Balance Volume (OBV) remained neutral, signalling a lack of strong volume confirmation for either buyers or sellers.

This mixed technical picture suggested the stock was consolidating after recent volatility, with investors awaiting clearer directional cues.

5 February: Price Gains Amid Mixed Market Signals

On 5 February, Honasa Consumer Ltd rebounded with a 1.32% gain, closing at ₹281.20, while the Sensex declined 0.53%. This divergence highlighted the stock’s relative strength despite broader market weakness. Technical indicators remained mixed; daily moving averages were still bearish, but the stock’s ability to close above ₹280 suggested tentative buying interest.

The weekly MACD continued to signal bearish momentum, but the neutral RSI and sideways Bollinger Bands hinted at a possible consolidation or base-building phase. Volume was relatively low at 6,502 shares, indicating cautious participation by investors.

6 February: Week Closes Strong with 1.42% Gain

Honasa Consumer Ltd closed the week on a positive note, gaining 1.42% to ₹285.20, its highest close of the week. The Sensex edged up 0.10%, underscoring the stock’s outperformance. The price rise was supported by improved technical momentum, although key indicators like the weekly MACD remained bearish, reflecting ongoing caution.

The stock’s volume increased to 8,940 shares, suggesting renewed investor interest. The closing price near the week’s high indicated a potential foundation for further gains, provided technical signals improve in the coming sessions.

Key Takeaways

Positive Signals: Honasa Consumer Ltd’s mojo upgrade to Hold reflects improving fundamentals, including strong quarterly earnings growth and rising promoter confidence. The stock outperformed the Sensex by 1.67% over the week, closing at its weekly high of ₹285.20. Technical momentum showed signs of stabilisation with neutral RSI and sideways Bollinger Bands, suggesting a consolidation phase rather than a sharp decline.

Cautionary Notes: Despite the upgrade, several technical indicators remain bearish or mildly bearish, including daily moving averages and weekly MACD. Volume trends have been subdued, and the stock’s price remains below its 52-week high of ₹334.00. Short-term traders should watch key support near ₹270 and resistance around ₹285 for directional cues.

Valuation and Sector Context: The company’s reasonable valuation metrics, including a Price to Book ratio of 7.1 and a PEG ratio of 1, support the Hold rating. Operating within the FMCG sector, Honasa Consumer faces sector-specific challenges but has demonstrated resilience through strong relative returns over one year.

Conclusion

Honasa Consumer Ltd’s week was characterised by a cautious but positive shift in technical momentum and a fundamental upgrade by MarketsMOJO. The stock’s 3.18% weekly gain outpaced the Sensex, driven by robust earnings growth and stabilising technical indicators. However, persistent bearish signals and moderate volume suggest that investors should maintain a balanced view. The Hold rating reflects this measured optimism, recognising the company’s growth potential while acknowledging ongoing market uncertainties. Monitoring technical developments and sector trends will be essential for assessing the stock’s next moves.

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