Key Events This Week
23 Feb: New 52-week high of Rs.720 and near all-time high reached
24 Feb: Stock declined amid broader market weakness
25 Feb: Continued downward pressure with reduced volumes
26 Feb: Minor recovery with modest volume
27 Feb: Sharp decline of 3.05% closing at Rs.669.00
23 February: Stock Hits New 52-Week and Near All-Time High
On Monday, 23 February 2026, Tamilnad Mercantile Bank Ltd surged to an intraday high of Rs.720, marking a new 52-week peak and approaching its all-time high. The stock closed at Rs.697.35, up Rs.7.75 or 1.12%, outperforming the Sensex which gained 0.39% to close at 36,817.86. This rally was supported by strong fundamentals, including a capital adequacy ratio of 24.31% and a low gross NPA ratio of 0.91%, signalling robust financial health. The stock traded above all key moving averages, reflecting sustained bullish momentum. The day’s volume was robust at 35,253 shares, indicating solid investor interest.
24 February: Market Weakness Weighs on Stock Price
Following the previous day’s gains, the stock retreated on 24 February, closing at Rs.693.75, down Rs.3.60 or 0.52%. This decline coincided with a broader market sell-off, as the Sensex fell 0.78% to 36,530.09. The stock’s volume halved to 16,920 shares, suggesting reduced buying enthusiasm. Despite the pullback, Tamilnad Mercantile Bank Ltd remained above key technical support levels, maintaining a positive medium-term outlook.
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25 February: Continued Decline on Lower Volumes
The downward trend extended into 25 February, with the stock closing at Rs.687.30, down Rs.6.45 or 0.93%. The Sensex, however, rebounded by 0.41% to 36,679.75, indicating a divergence between the stock and the broader market. Trading volumes dropped further to 8,972 shares, reflecting subdued investor participation. The stock’s decline amid a recovering market suggests profit-taking or sector-specific pressures.
26 February: Modest Recovery Amid Stabilising Market
On 26 February, Tamilnad Mercantile Bank Ltd edged up by Rs.2.75 or 0.40% to close at Rs.690.05. The Sensex also advanced 0.19% to 36,748.49. Volume increased modestly to 12,676 shares, signalling cautious buying interest. This slight rebound followed the prior days’ declines and may indicate short-term support near the Rs.685 level. The stock remained technically supported above its 20-day moving average, suggesting potential for consolidation.
27 February: Sharp Sell-Off Caps the Week
The week ended on a negative note as the stock plunged Rs.21.05 or 3.05% to close at Rs.669.00 on 27 February. This decline outpaced the Sensex’s 1.16% drop to 36,322.56. Volume surged to 23,543 shares, indicating strong selling pressure. The sharp fall may reflect profit-booking after the earlier rally and heightened market volatility. The stock’s close below the week’s opening price and key moving averages raises caution for near-term price action.
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Weekly Price Performance: Tamilnad Mercantile Bank Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-23 | Rs.697.35 | +1.12% | 36,817.86 | +0.39% |
| 2026-02-24 | Rs.693.75 | -0.52% | 36,530.09 | -0.78% |
| 2026-02-25 | Rs.687.30 | -0.93% | 36,679.75 | +0.41% |
| 2026-02-26 | Rs.690.05 | +0.40% | 36,748.49 | +0.19% |
| 2026-02-27 | Rs.669.00 | -3.05% | 36,322.56 | -1.16% |
Key Takeaways
Positive Signals: The stock demonstrated strong resilience early in the week, hitting a new 52-week high of Rs.720 and maintaining gains above key moving averages. Robust financial metrics such as a capital adequacy ratio of 24.31%, low gross NPA of 0.91%, and a credit-deposit ratio near 89% underpin the stock’s fundamental strength. The MarketsMOJO mojo grade upgrade to Buy with a score of 74.0 reflects improved quality and performance.
Cautionary Signals: Despite the early strength, the stock underperformed the Sensex in the latter half of the week, closing 2.99% lower. The sharp 3.05% drop on Friday on increased volume suggests profit-taking and heightened volatility. The absence of domestic mutual fund holdings may indicate institutional caution. The stock’s price closing below the week’s open and key averages warrants monitoring for potential consolidation or further correction.
Conclusion
Tamilnad Mercantile Bank Ltd’s week was characterised by a strong start with a new 52-week high, followed by a gradual pullback amid mixed market conditions. The stock’s fundamentals remain solid, supported by healthy capital ratios, asset quality, and profitability metrics. However, the recent price correction and increased selling volume highlight near-term volatility risks. Investors should closely watch the stock’s ability to hold technical support levels and any shifts in market sentiment as the broader Sensex also experienced a modest decline. Overall, the week’s price action reflects a balance between underlying strength and market caution in this mid-sized private sector bank.
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