Opening Session and Price Movement
The stock of Muthoot Finance Ltd, a prominent player in the Non Banking Financial Company (NBFC) sector, opened at Rs 3,662.1, marking an intraday low that represented a 10.0% decline from its prior closing price. This gap down opening was accompanied by significant volatility, with the intraday price swings reaching 72.1% based on the weighted average price, signalling a turbulent trading session.
Despite the stock’s price remaining above its 100-day and 200-day moving averages, it traded below the shorter-term averages of 5-day, 20-day, and 50-day, indicating a near-term weakness amid a longer-term bullish trend. The day’s performance marked a reversal after five consecutive days of gains, suggesting a pause or correction in the recent upward momentum.
Sector and Market Context
On the same day, the Sensex declined by 0.82%, a relatively modest drop compared to Muthoot Finance’s 9.51% loss. The stock underperformed its NBFC sector peers by 9.16%, highlighting sector-specific pressures or company-related factors influencing the sharp decline. The market cap grade for Muthoot Finance remains at 1, reflecting its substantial market capitalisation despite the recent price weakness.
Our current monthly pick, this Mid Cap from Automobile Two & Three Wheelers, survived rigorous evaluation against dozens of contenders. See why experts are backing this one!
- - Rigorous evaluation cleared
- - Expert-backed selection
- - Mid Cap conviction pick
Technical Indicators and Trend Analysis
Technical signals present a mixed picture for Muthoot Finance Ltd. On a weekly basis, the Moving Average Convergence Divergence (MACD) and the KST indicator show mild bearishness, while monthly readings remain bullish. The Relative Strength Index (RSI) does not currently signal any strong momentum either weekly or monthly.
Bollinger Bands on both weekly and monthly charts suggest a bullish trend, supported by daily moving averages also indicating a positive bias. The Dow Theory assessment aligns with the weekly mild bearishness but maintains a bullish stance monthly. On-Balance Volume (OBV) readings are bullish across weekly and monthly timeframes, suggesting that despite the recent price drop, buying interest has not completely dissipated.
Price Performance Over Time
Over the past month, Muthoot Finance Ltd has declined by 6.23%, compared to a 0.76% drop in the Sensex, reflecting a more pronounced weakness relative to the broader market. The one-day loss of 9.51% is significant, especially given the stock’s recent five-day rally, indicating a sharp correction phase.
The gap down opening and subsequent volatility may be attributed to overnight developments or market reactions to sector-specific news, which have not been explicitly detailed but have clearly influenced trading behaviour. The sharp decline and high volatility suggest some degree of panic selling in early trading hours, although the stock’s ability to remain above longer-term moving averages may provide some technical support.
Want to dive deeper on Muthoot Finance Ltd? There's a real-time research report diving right into the fundamentals, valuations, peer comparison, financials, technicals and much more!
- - Real-time research report
- - Complete fundamental analysis
- - Peer comparison included
Mojo Score and Grade Update
Muthoot Finance Ltd holds a strong Mojo Score of 90.0, reflecting robust overall quality and market standing. The Mojo Grade was upgraded from Buy to Strong Buy on 11 Aug 2025, indicating improved confidence in the stock’s fundamentals and outlook as assessed by MarketsMOJO. Despite the recent price weakness, this grade suggests that the company maintains strong underlying attributes relative to its peers.
The downgrade in short-term price performance contrasts with the longer-term positive technical and fundamental indicators, underscoring the complexity of the current market environment for the stock.
Intraday Trading Dynamics
The high intraday volatility of 72.1% points to active trading and rapid price fluctuations throughout the session. Such volatility often accompanies gap down openings as traders react to overnight news or earnings updates. The stock’s intraday low of Rs 3,662.1 was a key level tested early in the session, with some recovery attempts seen later, although the overall day ended with a substantial loss.
This pattern suggests that while initial panic selling was evident, some buyers stepped in to stabilise prices above critical moving averages, preventing a deeper slide.
Summary of Market Impact
The significant gap down opening of Muthoot Finance Ltd on 13 Feb 2026 reflects a combination of overnight developments and market concerns specific to the NBFC sector or the company itself. The stock’s sharp underperformance relative to the Sensex and its sector peers highlights the intensity of selling pressure. However, technical indicators and the strong Mojo Grade provide a nuanced view, indicating that the stock retains underlying strength despite the short-term setback.
Investors observing the stock should note the high volatility and the reversal after a multi-day rally, which may signal a consolidation phase or a reaction to recent news rather than a fundamental shift in the company’s prospects.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
