Technical Trend Overview and Price Momentum
As of 1 Feb 2026, Star Health & Allied Insurance’s share price closed at ₹469.55, marking a 4.22% increase from the previous close of ₹450.55. The stock traded within a range of ₹445.95 to ₹478.15 during the day, remaining comfortably above its 52-week low of ₹330.05 but still below the 52-week high of ₹533.90. This price movement reflects a positive short-term momentum, supported by the daily moving averages which have turned bullish.
The technical trend has shifted from mildly bearish to mildly bullish, signalling a potential change in investor sentiment. This is particularly significant given the stock’s outperformance relative to the broader market. Over the past week, Star Health’s stock return was 10.37%, substantially higher than the Sensex’s 0.90% gain. Similarly, the one-month return of 4.66% contrasts with the Sensex’s decline of 2.84%, and year-to-date returns of 3.2% versus the Sensex’s negative 3.46%.
MACD and RSI: Divergent Signals
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On the weekly timeframe, MACD remains bearish, while on the monthly chart it is mildly bearish. This suggests that while short-term momentum is improving, longer-term momentum has yet to confirm a sustained uptrend. The MACD histogram has shown some contraction in bearish momentum, but a clear bullish crossover has not yet materialised.
Relative Strength Index (RSI) readings on both weekly and monthly charts currently show no definitive signal, hovering in neutral zones. This lack of overbought or oversold conditions indicates that the stock is not yet stretched in either direction, leaving room for further price appreciation or correction depending on upcoming market catalysts.
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Moving Averages and Bollinger Bands Analysis
Daily moving averages have turned bullish, signalling that short-term price momentum is gaining strength. The stock price currently trades above its key moving averages, which often acts as support levels in an uptrend. This technical development aligns with the recent price gains and suggests that buyers are increasingly confident.
Conversely, Bollinger Bands on the weekly chart indicate a sideways trend, reflecting consolidation and a lack of strong directional movement in the medium term. On the monthly scale, Bollinger Bands are mildly bearish, implying some downward pressure or volatility in the longer term. This divergence between daily and monthly indicators highlights the importance of monitoring multiple timeframes for a comprehensive view.
Other Technical Indicators: KST, Dow Theory, and OBV
The Know Sure Thing (KST) indicator remains bearish on both weekly and monthly charts, suggesting that momentum has not fully shifted to the upside. Dow Theory analysis shows no clear trend on the weekly timeframe and a mildly bearish stance on the monthly timeframe, reinforcing the cautious outlook for longer-term investors.
On the volume front, On-Balance Volume (OBV) is mildly bullish on the weekly chart but mildly bearish on the monthly chart. This mixed volume signal indicates that while recent buying interest has increased, the overall accumulation trend over the longer term remains subdued.
Comparative Returns and Market Context
Star Health & Allied Insurance’s recent performance relative to the Sensex is noteworthy. The stock has outperformed the benchmark across short-term periods, with a 10.37% return over the past week compared to the Sensex’s 0.90%. Over one year, the stock’s 7.84% return slightly exceeds the Sensex’s 7.18%, although over three years it has underperformed with a -4.11% return versus the Sensex’s robust 38.27% gain.
This mixed relative performance suggests that while the stock has shown resilience and short-term strength, longer-term challenges remain. Investors should weigh these factors carefully when considering exposure to the insurance sector, which itself has faced volatility amid regulatory and macroeconomic shifts.
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Mojo Score and Ratings Update
MarketsMOJO has upgraded Star Health & Allied Insurance’s Mojo Grade from Sell to Hold as of 30 Jan 2026, reflecting the recent technical improvements and stabilising fundamentals. The current Mojo Score stands at 51.0, indicating a neutral stance. The Market Cap Grade remains modest at 3, consistent with the company’s mid-cap status within the insurance sector.
This upgrade signals a cautious endorsement, suggesting that while the stock is no longer a clear sell, investors should maintain a watchful eye on evolving technical and fundamental developments before committing significant capital.
Outlook and Investor Considerations
In summary, Star Health & Allied Insurance is exhibiting signs of a technical momentum shift with daily moving averages turning bullish and short-term price gains outpacing the broader market. However, mixed signals from weekly and monthly MACD, KST, and Dow Theory indicators counsel prudence. The absence of strong RSI signals and the sideways Bollinger Bands on weekly charts further underscore the need for careful monitoring.
Investors should consider the stock’s relative strength in the short term while remaining mindful of the longer-term bearish undertones. The recent upgrade to a Hold rating by MarketsMOJO reflects this balanced view. For those holding positions in the insurance sector, comparative analysis tools may help identify superior alternatives based on evolving market dynamics.
Fundamental and Sectoral Context
The insurance sector continues to navigate regulatory changes and competitive pressures, which impact stock performance. Star Health’s ability to maintain positive momentum amid these challenges is encouraging but not definitive. Market participants should integrate technical insights with fundamental analysis, including underwriting performance, claims ratios, and growth prospects, to form a comprehensive investment thesis.
Conclusion
Star Health & Allied Insurance’s recent technical developments suggest a tentative shift towards bullish momentum, supported by daily moving averages and strong short-term returns. Yet, the mixed signals from other technical indicators and the modest Mojo Score advise a measured approach. Investors are advised to monitor upcoming price action and volume trends closely, while considering peer comparisons and sectoral outlooks to optimise portfolio decisions.
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