Indian Hotels Co Ltd Faces Bearish Momentum Amid Technical Downturn

Technical Trend Shift and Price Movement

Indian Hotels Co Ltd’s technical trend has transitioned from mildly bearish to outright bearish, underscoring a growing negative sentiment among traders. The stock closed at ₹668.15, down 2.34% from the previous close of ₹684.15, with intraday lows touching ₹666.00, just above its 52-week low of ₹666.00. The 52-week high remains at ₹858.85, highlighting the significant retracement from peak levels.

This decline is more pronounced than the broader Sensex, which has seen a comparatively modest correction. Over the past week, Indian Hotels Co Ltd’s stock return was -3.19%, while the Sensex declined by only -0.75%. The one-month and year-to-date returns for the stock stand at -8.62% and -9.56% respectively, both considerably worse than the Sensex’s -1.98% and -2.32% returns over the same periods. Over the longer term, however, the stock has outperformed the benchmark, delivering a 10-year return of 565.33% compared to the Sensex’s 240.06%, reflecting its strong historical growth trajectory despite recent setbacks.

MACD and Momentum Indicators Signal Bearishness

The Moving Average Convergence Divergence (MACD) indicator presents a mixed but predominantly bearish outlook. On the weekly chart, the MACD remains bearish, indicating downward momentum is prevailing in the near term. The monthly MACD is mildly bearish, suggesting that while the longer-term trend is weakening, it has not yet fully turned negative. This divergence between weekly and monthly MACD readings points to a potential continuation of short-term weakness before any sustained recovery.

Complementing this, the Know Sure Thing (KST) oscillator is bearish on the weekly timeframe and mildly bearish monthly, reinforcing the view that momentum is fading. The Dow Theory analysis aligns with these findings, showing mildly bearish signals on both weekly and monthly charts, which further confirms the cautious stance investors should adopt.

RSI and Moving Averages: Contrasting Signals

The Relative Strength Index (RSI) offers a nuanced perspective. On the weekly scale, the RSI is bullish, indicating that despite the price decline, the stock is not yet oversold and may have some short-term support. However, the monthly RSI shows no clear signal, reflecting uncertainty in the longer-term momentum.

Moving averages on the daily chart are firmly bearish, with the stock trading below key averages, signalling downward pressure. This bearish alignment of moving averages typically suggests that the stock is in a downtrend and may face resistance on any attempted rallies.

Bollinger Bands and On-Balance Volume (OBV) Analysis

Bollinger Bands on both weekly and monthly charts are bearish, indicating that price volatility is skewed towards the downside and the stock is trading near the lower band. This often signals increased selling pressure and potential continuation of the downtrend.

On-Balance Volume (OBV) presents a more mixed picture. The weekly OBV shows no clear trend, suggesting volume is not decisively supporting either buyers or sellers in the short term. Conversely, the monthly OBV is mildly bullish, hinting at some accumulation by longer-term investors despite the price weakness. This divergence between price and volume could imply that the stock may find a base if buying interest strengthens.

Market Capitalisation and Mojo Score Implications

Indian Hotels Co Ltd’s market capitalisation grade is rated at 1, reflecting its status as a large-cap stock within the Hotels & Resorts sector. However, the company’s overall Mojo Score has deteriorated to 30.0, with a corresponding Mojo Grade downgraded from Hold to Sell as of 07 Jan 2026. This downgrade signals a weakening fundamental and technical outlook, cautioning investors about the stock’s near-term prospects.

The downgrade is consistent with the technical indicators’ bearish signals and the stock’s underperformance relative to the Sensex across multiple time horizons. The combination of a low Mojo Score and bearish technical trend suggests that Indian Hotels Co Ltd is currently facing headwinds that may limit upside potential in the immediate future.

Comparative Performance and Sector Context

Within the Hotels & Resorts industry, Indian Hotels Co Ltd’s recent price momentum contrasts with the sector’s broader trends, which have shown mixed signals amid fluctuating travel demand and economic uncertainties. The stock’s 1-year return of -17.90% starkly contrasts with the Sensex’s positive 8.65% gain over the same period, highlighting company-specific challenges or investor concerns.

Despite this, the company’s long-term performance remains robust, with 3-year and 5-year returns of 123.05% and 437.96% respectively, significantly outperforming the Sensex benchmarks of 36.79% and 68.52%. This historical outperformance underscores the company’s resilience and potential for recovery once technical and fundamental conditions improve.

Investor Takeaway and Outlook

For investors, the current technical landscape for Indian Hotels Co Ltd suggests caution. The bearish momentum across key indicators such as MACD, moving averages, and Bollinger Bands, combined with the downgrade in Mojo Grade to Sell, indicates that the stock may face further downside pressure in the near term.

However, the mildly bullish weekly RSI and monthly OBV hint at potential support levels forming, which could provide a base for a future rebound if broader market conditions improve and sector fundamentals strengthen. Long-term investors may find value in the stock’s historical outperformance and resilience, but short-term traders should be wary of the prevailing bearish signals.

Monitoring the evolution of momentum indicators and volume trends will be critical in assessing any shift in the stock’s trajectory. A sustained break above key moving averages and a positive MACD crossover would be necessary to confirm a reversal of the current downtrend.

Summary of Technical Ratings

To summarise the technical signals:

• MACD: Weekly Bearish, Monthly Mildly Bearish


• RSI: Weekly Bullish, Monthly No Signal


• Bollinger Bands: Weekly and Monthly Bearish


• Moving Averages: Daily Bearish


• KST: Weekly Bearish, Monthly Mildly Bearish


• Dow Theory: Weekly and Monthly Mildly Bearish


• OBV: Weekly No Trend, Monthly Mildly Bullish

These mixed but predominantly negative signals reinforce the current cautious stance on Indian Hotels Co Ltd’s stock.

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