Indian Hotels Co Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Momentum Shifts to Bearish Territory

Indian Hotels Co Ltd (NSE: 512481), a key player in the Hotels & Resorts sector, has seen its technical trend downgrade from mildly bearish to outright bearish. The stock closed at ₹672.10 on 20 Feb 2026, down 3.31% from the previous close of ₹695.10, marking a significant intraday decline. The day’s trading range was between ₹668.75 and ₹696.00, with the current price hovering closer to its 52-week low of ₹626.65, well below the 52-week high of ₹858.85.

This downward momentum is underscored by several technical indicators. The Moving Average Convergence Divergence (MACD) remains bearish on the weekly chart and mildly bearish on the monthly chart, signalling sustained selling pressure. The Relative Strength Index (RSI), while not currently issuing a clear signal on weekly or monthly timeframes, remains subdued, indicating a lack of strong buying interest.

Moving Averages and Bollinger Bands Confirm Downtrend

Daily moving averages have turned bearish, with the stock trading below key averages, suggesting that short-term momentum is firmly negative. Bollinger Bands on both weekly and monthly charts also reflect bearish conditions, with the price moving towards the lower band, indicating increased volatility and downward pressure.

The Know Sure Thing (KST) indicator, a momentum oscillator, aligns with this bearish outlook, showing bearish signals on the weekly chart and mildly bearish on the monthly chart. This convergence of negative signals across multiple technical tools reinforces the view that Indian Hotels Co Ltd is currently in a downtrend phase.

Mixed Signals from Volume and Dow Theory

Interestingly, volume-based indicators such as On-Balance Volume (OBV) present a mildly bullish stance on both weekly and monthly charts, suggesting that despite price declines, accumulation may be occurring at lower levels. This divergence between price and volume could hint at potential support zones forming, although it is not yet strong enough to reverse the prevailing bearish trend.

Dow Theory assessments provide a nuanced picture: weekly readings are mildly bullish, indicating some short-term optimism, while monthly readings remain mildly bearish, reflecting the longer-term caution among investors. This mixed technical backdrop suggests that while short-term rebounds are possible, the overall trend remains under pressure.

Performance Comparison with Sensex Highlights Underperformance

When compared to the benchmark Sensex, Indian Hotels Co Ltd has underperformed across multiple time horizons. Over the past week, the stock declined by 5.55%, significantly worse than the Sensex’s 1.41% drop. Over the one-month period, the stock marginally gained 0.59%, while the Sensex fell by 0.90%, showing some resilience.

Year-to-date (YTD), Indian Hotels Co Ltd has declined 9.02%, more than double the Sensex’s 3.19% fall. Over the last year, the stock’s return was negative 10.06%, contrasting sharply with the Sensex’s positive 8.64% gain. However, the longer-term picture is more favourable, with the stock delivering a 3-year return of 111.25%, vastly outperforming the Sensex’s 35.24%. Over five and ten years, Indian Hotels Co Ltd has delivered stellar returns of 442.45% and 609.25% respectively, compared to the Sensex’s 62.11% and 247.96%.

Mojo Score Downgrade Reflects Technical Weakness

MarketsMOJO’s proprietary Mojo Score for Indian Hotels Co Ltd currently stands at 36.0, categorised as a Sell. This represents a downgrade from the previous Hold rating as of 7 Jan 2026, reflecting the deteriorating technical and market conditions. The Market Cap Grade remains at 1, indicating a relatively low market capitalisation ranking within its peer group.

The downgrade is consistent with the bearish signals from technical indicators and the recent price weakness. Investors should note that the stock’s technical trend has shifted decisively into bearish territory, warranting caution for those holding or considering new positions.

Outlook and Investor Considerations

Given the current technical landscape, Indian Hotels Co Ltd appears to be in a consolidation or correction phase after a strong multi-year rally. The bearish MACD and moving averages suggest that the stock may face further downside pressure in the near term. The lack of clear RSI signals indicates that the stock is not yet oversold, leaving room for additional declines.

However, the mildly bullish OBV readings and weekly Dow Theory signals hint at potential accumulation, which could provide a base for a future rebound. Investors should monitor key support levels near the 52-week low of ₹626.65 and watch for any reversal signals in momentum indicators before considering fresh entries.

Summary

Indian Hotels Co Ltd’s recent technical deterioration signals a cautious outlook for investors. The stock’s shift from mildly bearish to bearish momentum, confirmed by MACD, moving averages, and Bollinger Bands, suggests that the current downtrend may persist. While volume indicators and short-term Dow Theory readings offer some hope of support, the overall technical picture remains weak.

Investors should weigh the stock’s underperformance relative to the Sensex and consider the recent downgrade in Mojo Grade before making investment decisions. Monitoring key technical levels and waiting for clear signs of momentum recovery will be crucial in navigating this volatile phase.

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