Indian Hotels Co Ltd Technical Momentum Shifts Amid Mixed Market Signals

Current Price and Market Context

As of 26 Feb 2026, Indian Hotels Co Ltd closed at ₹676.60, marginally down 0.04% from the previous close of ₹676.85. The stock traded within a range of ₹671.05 to ₹682.95 during the day, remaining closer to its 52-week low of ₹626.65 than its 52-week high of ₹858.85. This price action underscores a cautious market sentiment amid broader sectoral and macroeconomic factors impacting the Hotels & Resorts industry.

Technical Trend Analysis: A Shift from Bearish to Mildly Bearish

The technical trend for Indian Hotels has shifted from outright bearish to mildly bearish, signalling a potential easing of downward pressure but no definitive reversal yet. This subtle change is reflected in the weekly and monthly technical indicators, which present a mixed picture.

MACD Signals

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart, indicating that short-term momentum is still negative. However, the monthly MACD has improved to mildly bearish, suggesting that the longer-term downtrend may be losing some strength. This divergence between weekly and monthly MACD readings highlights the stock’s current consolidation phase, where short-term selling pressure persists but longer-term selling momentum is moderating.

RSI and Momentum Oscillators

The Relative Strength Index (RSI) on the weekly timeframe shows no clear signal, hovering near neutral levels without indicating overbought or oversold conditions. Conversely, the monthly RSI is bullish, implying that the stock may be gaining strength over a longer horizon. This bullish monthly RSI contrasts with other bearish indicators, suggesting that investors should watch for potential momentum shifts in the coming weeks.

Bollinger Bands and Moving Averages

Bollinger Bands on both weekly and monthly charts remain mildly bearish, with the price trading near the lower band, indicating subdued volatility but a tendency towards downward pressure. Daily moving averages reinforce this bearish stance, as the stock price remains below key averages, signalling that short-term trend remains weak and resistance levels are intact.

Additional Technical Indicators

The Know Sure Thing (KST) oscillator aligns with the bearish weekly trend and mildly bearish monthly trend, reinforcing the cautious outlook. Dow Theory analysis shows no clear trend on the weekly chart but mildly bearish conditions monthly, further confirming the lack of strong directional conviction. On a positive note, the On-Balance Volume (OBV) indicator is mildly bullish on both weekly and monthly charts, suggesting that volume flow may be supporting price stability or accumulation despite the prevailing bearish price action.

Comparative Performance Against Sensex

Indian Hotels Co Ltd’s returns relative to the Sensex reveal a mixed performance. Over the past week, the stock declined by 2.66%, underperforming the Sensex’s 1.74% drop. However, over the last month, the stock outperformed with a 4.92% gain compared to the Sensex’s 0.91%. Year-to-date, the stock has fallen 8.41%, significantly lagging the Sensex’s 3.46% decline. Over the one-year horizon, Indian Hotels posted a negative return of 6.55%, while the Sensex gained 10.29%. Longer-term returns remain robust, with three-, five-, and ten-year returns at 118.50%, 466.90%, and 626.56% respectively, far outpacing the Sensex’s corresponding returns of 38.36%, 61.20%, and 258.10%. This long-term outperformance highlights the company’s resilience despite recent volatility.

Mojo Score and Grade Revision

Indian Hotels currently holds a Mojo Score of 41.0, reflecting a cautious stance from MarketsMOJO’s proprietary scoring system. The Mojo Grade was downgraded from Hold to Sell on 07 Jan 2026, signalling increased risk and a less favourable outlook based on the latest technical and fundamental data. The Market Cap Grade remains at 1, indicating a relatively low market capitalisation rating within its peer group.

Implications for Investors

The mixed technical signals suggest that Indian Hotels is at a critical juncture. While some monthly indicators hint at a potential bottoming out or mild bullish momentum, the prevailing weekly and daily bearish trends caution investors against premature optimism. The stock’s proximity to its 52-week low and underperformance relative to the Sensex in the short term further underline the need for careful risk management.

Investors should monitor key technical levels, including the daily moving averages and Bollinger Bands, for signs of a sustained breakout or breakdown. The mildly bullish OBV readings could indicate underlying accumulation, but confirmation through price action is essential before considering a position increase.

Sectoral and Market Considerations

The Hotels & Resorts sector continues to face headwinds from fluctuating travel demand and macroeconomic uncertainties. Indian Hotels, as a leading player, is not immune to these pressures. Its technical profile reflects this broader sectoral caution, with no strong trend emerging on the weekly Dow Theory analysis and only mild bearishness on monthly charts.

Conclusion: A Cautious Outlook with Potential for Recovery

Indian Hotels Co Ltd’s technical parameters reveal a stock in transition. The downgrade to a Sell grade and the predominance of bearish weekly and daily indicators suggest caution for near-term investors. However, the mildly bullish monthly RSI and OBV readings offer a glimmer of hope for a gradual recovery if broader market conditions improve.

Given the stock’s strong long-term returns and leadership position in the Hotels & Resorts sector, investors with a higher risk tolerance may consider monitoring technical developments closely for signs of a sustained momentum shift. Until then, a prudent approach with attention to risk management remains advisable.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today