Mac Charles (India) Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Trend Shift and Price Movement

The stock closed at ₹606.20 on 12 Feb 2026, down 1.84% from the previous close of ₹617.55. Intraday, it fluctuated between ₹580.65 and ₹617.00, reflecting heightened volatility. The 52-week price range remains broad, with a high of ₹775.00 and a low of ₹500.00, indicating significant price swings over the past year.

The recent technical trend change from mildly bearish to bearish is underscored by daily moving averages, which currently signal a bearish momentum. This shift suggests that short-term selling pressure is intensifying, potentially signalling further downside risk in the near term.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, MACD remains bearish, reinforcing the recent downward momentum. The monthly MACD, however, is mildly bearish, indicating that while the medium-term trend is negative, it is not yet decisively so. This divergence between weekly and monthly MACD readings suggests that while short-term momentum is weakening, longer-term investors may still find some support.

RSI and Relative Strength

The Relative Strength Index (RSI) adds further nuance. The weekly RSI currently shows no clear signal, hovering in a neutral zone that neither indicates overbought nor oversold conditions. Conversely, the monthly RSI is bullish, implying that over a longer horizon, the stock may have underlying strength or is recovering from previous weakness. This disparity between weekly and monthly RSI readings highlights the importance of timeframe in technical analysis for Mac Charles (India) Ltd.

Bollinger Bands and Volatility

Bollinger Bands on both weekly and monthly charts are mildly bearish, suggesting that the stock price is trending towards the lower band. This typically signals increased volatility and potential downward pressure, but also hints at the possibility of a rebound if the price becomes oversold. Investors should monitor these bands closely for signs of a breakout or further decline.

Other Technical Indicators

The Know Sure Thing (KST) indicator aligns with the bearish narrative on a weekly basis, while remaining mildly bearish monthly. Dow Theory assessments show a mildly bearish trend weekly but no clear trend monthly, indicating some indecision among market participants. The On-Balance Volume (OBV) data is inconclusive at present, providing no strong directional bias.

Comparative Performance and Market Context

Examining Mac Charles (India) Ltd’s returns relative to the Sensex reveals a mixed performance. Over the past week, the stock outperformed the Sensex with a 4.05% gain compared to the benchmark’s 0.50%. However, this short-term strength was offset by a 4.28% decline over the past month, while the Sensex rose 0.79% in the same period.

Year-to-date, the stock has underperformed, falling 8.06% against the Sensex’s 1.16% decline. Over longer horizons, Mac Charles has delivered robust returns, with a 10.22% gain over one year, closely tracking the Sensex’s 10.41%. More impressively, the company has outpaced the benchmark over three and five years, returning 60.26% and 174.30% respectively, compared to the Sensex’s 38.81% and 63.46%. However, over a decade, the stock’s 134.14% gain lags behind the Sensex’s 267.00%, indicating some long-term underperformance.

Mojo Score and Analyst Ratings

MarketsMOJO’s latest assessment downgraded Mac Charles (India) Ltd from a Sell to a Strong Sell on 9 Feb 2026, reflecting deteriorating technical and fundamental conditions. The company’s Mojo Score stands at a low 27.0, signalling weak momentum and poor outlook. The Market Cap Grade is 4, indicating a relatively small market capitalisation that may contribute to higher volatility and risk.

This downgrade aligns with the bearish technical signals and recent price weakness, suggesting that investors should exercise caution and consider risk management strategies.

Investment Implications and Outlook

The confluence of bearish daily moving averages, weekly MACD, and KST indicators points to a continuation of downward momentum in the near term. However, the mildly bullish monthly RSI and the stock’s historical outperformance over medium-term horizons offer some hope for recovery if market conditions improve.

Investors should closely monitor key support levels near the 52-week low of ₹500.00 and watch for any reversal signals in momentum indicators. Given the current technical environment and the MarketsMOJO Strong Sell rating, a cautious stance is advisable, particularly for short-term traders.

Sector and Industry Considerations

Operating within the Hotels & Resorts sector, Mac Charles (India) Ltd faces sector-specific headwinds including fluctuating travel demand, rising operational costs, and macroeconomic uncertainties. These factors may exacerbate the bearish technical signals and weigh on near-term performance.

Nonetheless, the company’s long-term track record of outperforming the Sensex over three and five years suggests underlying operational strengths that could be leveraged when market conditions stabilise.

Summary

In summary, Mac Charles (India) Ltd is currently navigating a challenging technical landscape marked by a shift to bearish momentum on short-term indicators, while longer-term signals remain mixed. The recent downgrade to a Strong Sell by MarketsMOJO and the low Mojo Score reinforce the need for prudence. Investors should weigh the stock’s historical medium-term outperformance against the current technical weakness and sector risks before making investment decisions.

Close monitoring of momentum indicators, price support levels, and sector developments will be essential to gauge the stock’s trajectory in the coming weeks.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →