Key Events This Week
09 Feb: Upgrade to Sell rating by MarketsMOJO on improved technicals and valuation
09 Feb: Technical momentum shifts from strongly bearish to mildly bearish
13 Feb: Week closes at Rs.400.10 (+1.29%) outperforming Sensex (-0.54%)
Monday, 09 February: Upgrade to Sell Rating Spurs Early Gains
Shoppers Stop Ltd began the week on a positive note, rising 1.57% to close at Rs.401.20, outperforming the Sensex’s 1.04% gain. This movement coincided with MarketsMOJO’s upgrade of the stock’s rating from 'Strong Sell' to 'Sell' on 6 February 2026, reflecting improved technical indicators and valuation metrics despite ongoing fundamental challenges.
The upgrade highlighted a shift in technical momentum from strongly bearish to mildly bearish, supported by a nuanced assessment of quality, valuation, and financial trends. Notably, the company’s valuation grade improved to 'Very Attractive', driven by discounted price multiples relative to peers. However, weak fundamentals such as high leverage (debt-to-equity ratio of 11.56 times) and subdued profitability persisted as cautionary factors.
Tuesday, 10 February: Continued Momentum Pushes Stock Higher
The stock extended its gains, climbing 2.24% to Rs.410.20, significantly outperforming the Sensex’s modest 0.25% rise. This surge was supported by increased trading volume of 1,761 lakh shares, indicating growing investor interest following the rating upgrade and technical momentum shift.
Technical indicators remained mixed but showed signs of stabilisation. The Moving Average Convergence Divergence (MACD) stayed bearish on weekly and monthly charts, yet the Dow Theory weekly signals turned mildly bullish, suggesting emerging positive price action. The Relative Strength Index (RSI) hovered in neutral territory, indicating neither overbought nor oversold conditions.
Wednesday, 11 February: Stock Consolidates Near Weekly High
Shoppers Stop closed marginally higher by 0.41% at Rs.411.90, marking the week’s peak price. The Sensex also gained 0.13%, closing at 37,256.72. Despite the small price increase, volume declined to 1,065 lakh shares, signalling some profit-taking or cautious positioning among investors.
The technical outlook remained cautiously optimistic with Bollinger Bands indicating mild bearishness but potential for a short-term bounce. The Know Sure Thing (KST) oscillator continued to signal bearish momentum, reinforcing the need for confirmation of a sustained uptrend before stronger bullish conviction can develop.
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Thursday, 12 February: Profit Taking Amid Sensex Decline
The stock reversed course, slipping 0.39% to Rs.410.30 as the Sensex fell 0.56%. Trading volume surged to 2,888 lakh shares, suggesting active repositioning by investors amid broader market weakness. The technical indicators reflected this caution, with daily moving averages and Bollinger Bands signalling a mildly bearish stance.
On-balance volume (OBV) was mildly bearish on a weekly basis, indicating that volume trends did not strongly support upward price moves. The mixed signals from Dow Theory and neutral RSI readings suggested indecision, with the stock potentially entering a consolidation phase near resistance levels around Rs.410.
Friday, 13 February: Week Ends with Slight Decline but Outperformance
Shoppers Stop closed the week at Rs.400.10, down 2.49% on the day but still posting a weekly gain of 1.29%. This contrasted with the Sensex’s sharper 1.40% decline, underscoring the stock’s relative resilience amid a broader market sell-off. Volume moderated to 634 lakh shares, reflecting reduced trading activity as the week concluded.
The technical momentum remained mildly bearish, with MACD and KST oscillators signalling ongoing downward pressure. However, the stock’s outperformance relative to the Sensex over the week and month suggests some underlying strength, possibly linked to the improved valuation and cautious optimism from the recent rating upgrade.
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| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.401.20 | +1.57% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.410.20 | +2.24% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.411.90 | +0.41% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.410.30 | -0.39% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.400.10 | -2.49% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: The upgrade to a Sell rating from Strong Sell by MarketsMOJO on 6 February 2026 was a pivotal event, reflecting improved valuation attractiveness and a subtle easing of technical bearishness. The stock outperformed the Sensex by nearly 2 percentage points over the week, supported by short-term momentum shifts and relative price resilience amid market weakness.
Cautionary Factors: Despite the upgrade, Shoppers Stop continues to face significant fundamental challenges, including a high debt-to-equity ratio of 11.56 times and a 68.86% contraction in profit after tax over the latest six-month period. Technical indicators such as MACD and KST oscillators remain bearish, and volume trends do not strongly support a sustained uptrend. The stock’s long-term underperformance relative to the Sensex underscores structural headwinds.
Valuation Context: The stock’s valuation metrics are compelling, with a very attractive grade assigned by MarketsMOJO. Price multiples such as enterprise value to EBITDA (10.50) and enterprise value to capital employed (2.13) suggest the stock is trading at a discount compared to peers like A B Lifestyle and Vedant Fashions. This valuation discount may underpin the recent positive price action despite fundamental weaknesses.
Conclusion
Shoppers Stop Ltd’s performance in the week ending 13 February 2026 was characterised by a modest price gain of 1.29%, outperforming the Sensex’s decline of 0.54%. The key driver was the upgrade to a Sell rating by MarketsMOJO, reflecting improved technical momentum and valuation appeal amid persistent fundamental challenges. While short-term technical signals show some stabilisation, the stock remains in a mildly bearish phase with mixed momentum indicators.
Investors should remain mindful of the company’s high leverage and subdued profitability, which continue to weigh on long-term prospects. The recent price gains and relative outperformance suggest cautious optimism, but confirmation of a sustained recovery will require stronger fundamental improvements and more decisive technical breakouts. For now, the stock’s trajectory remains nuanced, balancing valuation-driven interest against ongoing operational risks.
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