STEL Holdings Ltd Faces Technical Momentum Shift Amid Market Pressure

Price Movement and Market Context

On 22 January 2026, STEL Holdings closed at ₹387.35, down 3.15% from the previous close of ₹399.95. The intraday range saw a high of ₹410.00 and a low of ₹385.85, indicating heightened volatility. The stock remains significantly below its 52-week high of ₹635.00, while comfortably above its 52-week low of ₹310.20. This wide trading band underscores the stock’s recent struggles amid broader market headwinds.

Comparatively, STEL Holdings has underperformed the Sensex over multiple time horizons. Over the past week, the stock declined by 9.95%, sharply contrasting with the Sensex’s modest 1.77% fall. The one-month return paints a bleaker picture, with STEL plunging 27.97% against the Sensex’s 3.56% decline. Year-to-date, the stock is down 21.55%, while the Sensex has dropped 3.89%. Even on a one-year basis, STEL’s return is negative at -1.92%, whereas the Sensex has gained 8.01%. However, the longer-term performance remains impressive, with a three-year return of 165.13% and a ten-year return exceeding 1,350%, far outpacing the Sensex’s respective 35.12% and 241.83% gains.

Technical Indicator Analysis

The technical landscape for STEL Holdings has shifted markedly. The weekly and monthly Moving Average Convergence Divergence (MACD) indicators have turned mildly bearish, signalling weakening momentum. This is a critical development, as MACD is a widely respected momentum oscillator that measures the relationship between two moving averages of a stock’s price. The bearish crossover on both weekly and monthly charts suggests that the stock’s upward momentum is fading.

Relative Strength Index (RSI) readings on both weekly and monthly timeframes currently show no clear signal, hovering in neutral zones. This lack of directional RSI momentum indicates that the stock is neither overbought nor oversold, reinforcing the sideways trend narrative.

Bollinger Bands, which measure volatility and price levels relative to recent averages, are signalling bearish conditions on both weekly and monthly charts. The stock price is trending towards the lower band, suggesting increased selling pressure and a potential continuation of the downtrend.

Moving Averages and Trend Shifts

On a daily basis, moving averages remain mildly bullish, indicating some short-term support for the stock. However, this is tempered by the weekly technical trend shifting from mildly bullish to sideways, reflecting uncertainty among traders and investors. The KST (Know Sure Thing) indicator presents a mixed picture: bullish on the weekly timeframe but mildly bearish on the monthly, highlighting conflicting momentum signals that complicate the outlook.

Dow Theory assessments further illustrate this divergence, with weekly trends mildly bearish while monthly trends remain bullish. This suggests that while short-term pressures are mounting, the longer-term uptrend may still hold some resilience.

On-Balance Volume (OBV), a volume-based indicator that helps confirm price trends, is mildly bearish on the weekly chart and shows no clear trend monthly. This volume weakness supports the view that selling pressure is increasing, but not decisively so.

Mojo Score and Grade Downgrade

Reflecting these technical developments and price weakness, MarketsMOJO has downgraded STEL Holdings’ mojo grade from Hold to Sell as of 21 January 2026. The current mojo score stands at 47.0, signalling a below-average outlook. The downgrade is consistent with the deteriorating technical indicators and the stock’s underperformance relative to the broader market.

The company’s market cap grade remains low at 4, indicating a smaller market capitalisation relative to peers, which may contribute to higher volatility and risk. Investors should weigh these factors carefully when considering exposure to STEL Holdings.

Sector and Industry Context

STEL Holdings operates within the NBFC sector, which has faced headwinds due to tightening credit conditions and regulatory scrutiny. The sector’s overall performance has been mixed, with some companies managing to sustain growth while others struggle with asset quality and liquidity challenges. STEL’s technical signals suggest it is currently on the weaker side of this spectrum.

Given the stock’s recent price momentum shift and technical signals, investors may want to monitor sector developments closely, as any improvement in NBFC fundamentals could provide a catalyst for recovery.

Investor Takeaways and Outlook

STEL Holdings’ recent technical deterioration and price weakness suggest caution for investors. The downgrade to a Sell mojo grade reflects the growing risks associated with the stock’s momentum and sector challenges. While the daily moving averages offer some short-term support, the broader weekly and monthly indicators point to a sideways or mildly bearish trend.

Investors should consider the stock’s relative underperformance against the Sensex and the NBFC sector backdrop before increasing exposure. The mixed signals from momentum indicators such as KST and Dow Theory imply that any recovery may be tentative and dependent on broader market and sector improvements.

Long-term investors may find value in the stock’s impressive multi-year returns, but near-term volatility and technical weakness warrant a cautious approach. Monitoring volume trends and key support levels around ₹385 to ₹310 will be critical in assessing the stock’s next directional move.

In summary, STEL Holdings currently faces a challenging technical environment, with momentum indicators signalling a shift away from bullishness. The downgrade to Sell by MarketsMOJO underscores the need for investors to reassess their positions and consider alternative opportunities within the NBFC space or other sectors.

Summary of Key Technical Signals:

• MACD: Weekly and Monthly mildly bearish


• RSI: Neutral on weekly and monthly charts


• Bollinger Bands: Bearish on weekly and monthly


• Moving Averages: Daily mildly bullish, Weekly sideways


• KST: Weekly bullish, Monthly mildly bearish


• Dow Theory: Weekly mildly bearish, Monthly bullish


• OBV: Weekly mildly bearish, Monthly no clear trend

Price and Returns Overview:

• Current Price: ₹387.35


• 52-Week High: ₹635.00


• 52-Week Low: ₹310.20


• 1 Week Return: -9.95% vs Sensex -1.77%


• 1 Month Return: -27.97% vs Sensex -3.56%


• Year-to-Date Return: -21.55% vs Sensex -3.89%


• 1 Year Return: -1.92% vs Sensex 8.01%


• 3 Year Return: 165.13% vs Sensex 35.12%


• 10 Year Return: 1350.75% vs Sensex 241.83%

Investors should continue to monitor STEL Holdings closely, paying particular attention to technical developments and sector dynamics that could influence the stock’s trajectory in the coming months.

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