Tara Chand Infralogistic Solutions Ltd Faces Bearish Momentum Amid Technical Downgrade

Feb 20 2026 08:04 AM IST
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Tara Chand Infralogistic Solutions Ltd, a key player in the Transport Services sector, has experienced a notable shift in its technical momentum, moving from a mildly bearish stance to a more pronounced bearish trend. This transition is underscored by deteriorating signals across multiple technical indicators, including MACD, moving averages, and Bollinger Bands, signalling increased selling pressure and caution for investors.
Tara Chand Infralogistic Solutions Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Trend Shift and Price Movement

The stock closed at ₹65.98 on 20 Feb 2026, down 0.59% from the previous close of ₹66.37. Intraday volatility was evident, with a high of ₹67.80 and a low of ₹65.05. Despite this dip, the stock remains above its 52-week low of ₹52.45 but significantly below its 52-week high of ₹103.67, reflecting a wide trading range over the past year.

The technical trend has shifted from mildly bearish to outright bearish, a development that aligns with the daily moving averages signalling a bearish stance. This suggests that the short-term price momentum is weakening, and the stock may face further downward pressure unless a reversal occurs.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed but predominantly negative outlook. On a weekly basis, the MACD is firmly bearish, indicating that the short-term momentum is declining relative to the longer-term trend. The monthly MACD, while mildly bearish, suggests that the longer-term momentum is also under pressure but not as severely as the weekly timeframe.

This divergence between weekly and monthly MACD readings highlights a potential acceleration of bearish momentum in the near term, which could lead to further price declines if confirmed by other indicators.

RSI and Overbought/Oversold Conditions

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in a neutral zone. This indicates that the stock is neither overbought nor oversold, suggesting that the recent price movements have not yet reached extreme levels that typically precede a reversal.

However, the absence of a bullish RSI signal amid other bearish indicators implies that the stock lacks upward momentum and may continue to face selling pressure.

Bollinger Bands and Volatility

Bollinger Bands on the weekly chart have turned bearish, with the price approaching the lower band, signalling increased volatility and potential downside risk. The monthly Bollinger Bands are mildly bearish, indicating that while volatility is elevated, the longer-term price range remains somewhat stable.

The proximity to the lower Bollinger Band on the weekly timeframe often suggests that the stock is nearing a support level, but given the overall bearish context, this support may be tested or breached.

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Moving Averages and KST Indicator

Daily moving averages have turned bearish, reinforcing the short-term downtrend. This is a critical signal for traders as it often precedes further declines if the price remains below key moving averages such as the 50-day and 200-day.

The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change calculations, is bearish on a weekly basis and mildly bearish monthly. This confirms the weakening momentum across different timeframes and suggests that the stock’s price action is likely to remain subdued in the near term.

Volume and Dow Theory Signals

On-Balance Volume (OBV) is mildly bearish weekly but shows no significant trend monthly, indicating that volume-based selling pressure is present but not overwhelming. This mild bearishness in volume supports the technical narrative of cautious investor sentiment.

Dow Theory analysis reveals no clear trend on either weekly or monthly charts, reflecting uncertainty in the broader market context for this stock. This lack of directional confirmation adds to the cautious outlook.

Performance Relative to Sensex

Examining returns relative to the benchmark Sensex provides additional context. Over the past week, Tara Chand Infralogistic Solutions Ltd outperformed the Sensex with a 0.23% gain versus the Sensex’s 1.37% decline. However, this short-term outperformance is overshadowed by longer-term underperformance: the stock declined 10.19% over the past month compared to a 0.51% drop in the Sensex, and year-to-date losses stand at 15.06% against the Sensex’s 2.58% decline.

Despite these recent setbacks, the stock has delivered impressive long-term returns, with a 16.99% gain over one year and a staggering 932.55% over five years, far outpacing the Sensex’s 10.99% and 69.90% respectively. This contrast highlights the stock’s volatility and the importance of technical signals in timing entry and exit points.

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Mojo Score and Analyst Ratings

Tara Chand Infralogistic Solutions Ltd currently holds a Mojo Score of 28.0, categorised as a Strong Sell. This represents a downgrade from its previous Sell rating on 19 Feb 2026, reflecting a deterioration in the company’s technical and fundamental outlook. The Market Cap Grade stands at 4, indicating a relatively modest market capitalisation within its sector.

The Strong Sell rating is consistent with the bearish technical indicators and recent price weakness, signalling that investors should exercise caution and consider risk management strategies.

Outlook and Investor Considerations

Given the confluence of bearish signals from MACD, moving averages, Bollinger Bands, and KST, alongside a neutral RSI and mild volume weakness, Tara Chand Infralogistic Solutions Ltd appears to be in a technical downtrend with limited immediate upside. The stock’s recent price action and technical deterioration suggest that further downside cannot be ruled out in the short term.

Investors should closely monitor key support levels near ₹65 and the 52-week low of ₹52.45. A sustained break below these levels could trigger accelerated selling. Conversely, any reversal in MACD momentum or a bullish RSI divergence could signal a potential recovery phase.

Long-term investors may find value in the stock’s impressive multi-year returns but should remain vigilant to technical developments that could impact entry or exit timing.

Summary

Tara Chand Infralogistic Solutions Ltd is currently navigating a challenging technical landscape marked by a shift to bearish momentum across multiple indicators. The downgrade to a Strong Sell Mojo Grade underscores the heightened risk profile. While the stock’s long-term performance remains robust, short- to medium-term investors should approach with caution and consider alternative opportunities within the Transport Services sector or broader market.

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