Technical Momentum Shifts and Indicator Analysis
The latest technical assessment reveals that Mac Charles (India) Ltd’s momentum has deteriorated, with the technical trend now firmly bearish. The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, remains bearish on the weekly chart and mildly bearish on the monthly chart, signalling persistent downward pressure in both short and medium terms.
The Relative Strength Index (RSI) presents a more nuanced picture. While the weekly RSI does not currently emit a clear signal, the monthly RSI has turned bullish, suggesting that on a longer timeframe, the stock may be approaching oversold conditions or beginning to build strength. However, this bullish RSI signal is not yet corroborated by other indicators, limiting its immediate impact on the stock’s outlook.
Bollinger Bands, which measure volatility and potential price reversals, are mildly bearish on both weekly and monthly charts. This indicates that the stock price is trading near the lower band, reflecting increased volatility and a potential continuation of the downward trend.
Daily moving averages reinforce the bearish sentiment, with the stock price currently below key averages, signalling that short-term momentum remains weak. The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change calculations, is bearish on the weekly chart and mildly bearish on the monthly chart, further confirming the negative momentum.
Interestingly, Dow Theory analysis shows no clear trend on either weekly or monthly timeframes, indicating a lack of definitive directional confirmation from this classical technical framework.
Price Performance and Volatility
Mac Charles (India) Ltd’s current price stands at ₹563.60, down from the previous close of ₹573.15, marking a day change of -1.67%. The stock’s intraday range has been volatile, with a low of ₹531.00 and a high of ₹573.00. This volatility is consistent with the mildly bearish Bollinger Bands readings and reflects investor uncertainty.
The stock’s 52-week high is ₹775.00, while the 52-week low is ₹500.00, indicating a wide trading range over the past year. The current price is closer to the lower end of this range, underscoring the recent weakness in the stock.
Comparative Returns Against Sensex
When compared with the broader market benchmark, the Sensex, Mac Charles (India) Ltd’s returns have been mixed. Over the past week, the stock returned 0.85%, lagging behind the Sensex’s 1.59% gain. Over one month, the stock has declined sharply by 12.31%, significantly underperforming the Sensex’s modest 1.74% loss.
Year-to-date (YTD), the stock has fallen 14.52%, while the Sensex has declined by 1.92%. Over the one-year horizon, Mac Charles (India) Ltd’s return is negative at -2.20%, contrasting with the Sensex’s positive 7.07% gain. However, over longer periods, the stock has outperformed the benchmark, delivering 44.48% over three years and an impressive 159.66% over five years, compared to the Sensex’s 38.13% and 64.75% respectively. Over ten years, the stock’s return of 125.44% trails the Sensex’s 239.52%, reflecting a more recent slowdown in momentum.
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Mojo Score and Ratings Update
MarketsMOJO’s latest evaluation assigns Mac Charles (India) Ltd a Mojo Score of 33.0, categorising it as a Sell. This represents a downgrade from the previous Strong Sell rating, effective from 04 Feb 2026. The downgrade reflects the deteriorating technical indicators and the stock’s underperformance relative to the sector and market benchmarks.
The company’s Market Cap Grade is rated 4, indicating a micro-cap status with associated liquidity and volatility considerations. This grading aligns with the stock’s recent price behaviour and technical signals, suggesting investors should exercise caution.
Sector and Industry Context
Operating within the Hotels & Resorts sector, Mac Charles (India) Ltd faces sector-specific headwinds including fluctuating travel demand, economic uncertainties, and competitive pressures. The sector has shown mixed technical signals overall, but Mac Charles’ technical deterioration is more pronounced, signalling company-specific challenges or market sentiment issues.
Investors should weigh these sector dynamics alongside the technical indicators before making allocation decisions.
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Investor Takeaway and Outlook
Mac Charles (India) Ltd’s technical profile suggests a cautious stance for investors. The shift from mildly bearish to bearish technical trends, combined with weak daily moving averages and bearish MACD readings, indicates that the stock may face continued downward pressure in the near term.
However, the mildly bullish monthly RSI and the stock’s historical outperformance over multi-year periods provide some grounds for longer-term optimism. Investors with a higher risk tolerance might consider these signals as potential early signs of a turnaround, but confirmation from other indicators and price action is necessary.
Given the current technical and fundamental context, the stock remains a Sell according to MarketsMOJO’s grading, and investors should monitor for further developments before increasing exposure.
Summary of Key Technical Indicators:
- MACD: Weekly Bearish, Monthly Mildly Bearish
- RSI: Weekly No Signal, Monthly Bullish
- Bollinger Bands: Weekly and Monthly Mildly Bearish
- Moving Averages: Daily Bearish
- KST: Weekly Bearish, Monthly Mildly Bearish
- Dow Theory: No clear trend on weekly or monthly
Investors should continue to track these indicators closely, especially the RSI and MACD on monthly charts, for signs of a potential momentum shift.
Conclusion
Mac Charles (India) Ltd’s recent technical deterioration and underperformance relative to the Sensex highlight the challenges facing the stock. While some longer-term indicators hint at possible recovery, the prevailing bearish momentum and sector headwinds suggest that investors should remain cautious. The downgrade to a Sell rating by MarketsMOJO reflects this balanced but cautious outlook.
Careful monitoring of technical signals and sector developments will be essential for investors considering exposure to this micro-cap within the Hotels & Resorts industry.
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