Mahindra Holidays & Resorts India Ltd Faces Bearish Momentum Amid Technical Downturn

Technical Momentum Shifts to Bearish

Mahindra Holidays & Resorts India Ltd (stock code 836326) has seen its technical trend deteriorate from mildly bearish to outright bearish, reflecting a growing negative sentiment among traders. The stock closed at ₹300.50 on 13 Feb 2026, down 4.97% from the previous close of ₹316.20, marking a significant intraday decline. The day’s trading range was between ₹298.75 and ₹316.30, with the current price hovering closer to the 52-week low of ₹241.00 than the 52-week high of ₹381.55.

This price weakness is corroborated by several technical indicators. The Moving Average Convergence Divergence (MACD) remains bearish on both weekly and monthly charts, signalling sustained downward momentum. The daily moving averages also confirm a bearish stance, with the stock trading below key averages, indicating sellers are in control.

Mixed Signals from Momentum Indicators

The Relative Strength Index (RSI) on weekly and monthly timeframes currently shows no clear signal, hovering in a neutral zone. This suggests that while the stock is not yet oversold, it lacks the momentum to mount a meaningful recovery in the near term. Meanwhile, Bollinger Bands on weekly and monthly charts are mildly bearish, indicating the stock price is trending towards the lower band, a sign of increasing selling pressure.

The Know Sure Thing (KST) indicator, a momentum oscillator, aligns with the bearish outlook on both weekly and monthly scales, reinforcing the negative technical bias. Conversely, the Dow Theory presents a nuanced picture: mildly bullish on the weekly timeframe but mildly bearish monthly, reflecting short-term attempts at recovery overshadowed by longer-term weakness.

Volume and On-Balance Volume Trends

On-Balance Volume (OBV) analysis reveals a mildly bearish trend on the weekly chart, suggesting that volume flow is favouring sellers. However, the monthly OBV shows no clear trend, indicating a lack of conviction among longer-term investors. This divergence between volume and price action may imply that the current downtrend could persist unless buying interest intensifies.

Comparative Performance Against Sensex

When analysing returns relative to the benchmark Sensex, Mahindra Holidays & Resorts has underperformed over most time horizons. The stock posted a 1-week return of 2.37%, outperforming the Sensex’s 0.43% gain, but this short-term strength masks broader underperformance. Over one month, the stock declined by 0.97% compared to the Sensex’s 0.24% fall. Year-to-date, the stock is down 2.92%, lagging the Sensex’s 1.81% decline.

Longer-term returns are more concerning. Over the past year, the stock has fallen 6.24%, while the Sensex gained 9.85%. Over three and five years, Mahindra Holidays & Resorts returned 10.15% and 26.79% respectively, significantly trailing the Sensex’s 37.89% and 62.34%. The 10-year return of 27.38% pales in comparison to the Sensex’s 264.02%, highlighting the stock’s relative underperformance in the broader market context.

Mojo Score and Ratings Reflect Weakness

MarketsMOJO assigns Mahindra Holidays & Resorts a Mojo Score of 31.0, categorising it as a Sell. This represents a downgrade from a previous Strong Sell rating on 9 Feb 2026, indicating a slight improvement but still a negative outlook. The Market Cap Grade stands at 3, reflecting the company’s mid-cap status within the Hotels & Resorts sector.

The downgrade in technical ratings aligns with the bearish signals from momentum and volume indicators, suggesting that the stock faces continued headwinds. Investors should be cautious given the deteriorating technical landscape and the stock’s underperformance relative to the broader market.

Sectoral and Industry Context

Within the Hotels & Resorts industry, Mahindra Holidays & Resorts is contending with sector-wide challenges including subdued travel demand and inflationary pressures impacting discretionary spending. The sector’s recovery remains uneven, and the stock’s technical indicators mirror this uncertainty. The mildly bearish Bollinger Bands and mixed Dow Theory signals reflect the sector’s struggle to regain robust upward momentum.

Given the current technical and fundamental backdrop, the stock’s near-term outlook appears constrained, with resistance likely near recent highs around ₹316 and support closer to the 52-week low of ₹241. Investors should monitor key technical levels and broader market conditions before considering fresh positions.

Investor Takeaway and Outlook

Mahindra Holidays & Resorts India Ltd’s technical parameters indicate a clear shift towards bearish momentum, with multiple indicators confirming downside risks. The MACD and KST oscillators on weekly and monthly charts remain firmly negative, while moving averages and Bollinger Bands reinforce the weak trend. The absence of strong RSI signals suggests limited immediate recovery potential.

Relative underperformance against the Sensex over medium and long-term horizons further dampens the stock’s appeal. While short-term price action showed some resilience, the broader technical and fundamental context advises caution. Investors should consider the stock’s current Sell rating and monitor for any reversal signals before increasing exposure.

In the context of the Hotels & Resorts sector’s ongoing challenges, Mahindra Holidays & Resorts faces a tough environment. The stock’s technical deterioration underscores the need for a disciplined approach, favouring risk management and selective opportunities within the sector.

Summary of Key Technical Indicators:

• MACD: Weekly and Monthly – Bearish
• RSI: Weekly and Monthly – Neutral (No Signal)
• Bollinger Bands: Weekly and Monthly – Mildly Bearish
• Moving Averages: Daily – Bearish
• KST: Weekly and Monthly – Bearish
• Dow Theory: Weekly – Mildly Bullish; Monthly – Mildly Bearish
• OBV: Weekly – Mildly Bearish; Monthly – No Trend

Given these factors, Mahindra Holidays & Resorts India Ltd remains a stock to watch closely, with technical signals currently advising a cautious stance.

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