Key Events This Week
5 Jan: TARC Ltd upgraded to Sell on technical improvements
5 Jan: Mixed technical signals amid mildly bullish momentum
9 Jan: Week closes at Rs.176.45 (+0.20%) outperforming Sensex
Monday, 5 January: Upgrade to Sell Amid Technical Improvements
TARC Ltd began the week on a positive note, closing at Rs.179.95, up 2.19% from the previous close. This rise coincided with MarketsMOJO upgrading the stock’s rating from Strong Sell to Sell, citing improved technical parameters despite ongoing financial challenges. The Mojo Score was revised to 39.0, reflecting a cautious but more favourable outlook. Weekly technical indicators such as MACD and KST oscillators turned mildly bullish, while Bollinger Bands and On-Balance Volume suggested accumulation by investors. However, monthly and daily indicators remained mixed or mildly bearish, signalling that the recovery was tentative.
Tuesday, 6 January: Profit Taking Leads to Decline
The stock retraced some gains on 6 January, closing at Rs.177.50, down 1.36%. This decline occurred alongside a modest Sensex drop of 0.19%. Lower trading volume of 17,995 shares suggested reduced investor enthusiasm. The dip aligned with daily moving averages indicating mild bearishness, possibly reflecting short-term profit-taking after Monday’s rally. Despite this, the stock remained above key support levels near Rs.171, maintaining the broader technical uptrend.
Wednesday, 7 January: Strong Rebound on Increased Volume
TARC Ltd rebounded sharply on 7 January, gaining 2.70% to close at Rs.182.30, its weekly high. This rally outpaced the Sensex’s marginal 0.03% gain and was supported by a surge in volume to 69,121 shares. The positive momentum was consistent with weekly technical indicators signalling mild bullishness, including a bullish MACD crossover and strengthening KST oscillator. The stock traded within a range of Rs.177.00 to Rs.183.50, approaching resistance near the recent high of Rs.179.80 noted in earlier technical analysis.
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Thursday, 8 January: Sharp Decline Amid Broader Market Weakness
The stock experienced a significant pullback on 8 January, falling 3.40% to Rs.176.10, while the Sensex dropped 1.41%. The decline was accompanied by a moderate volume of 37,874 shares. This correction aligned with daily moving averages signalling mild bearishness and monthly technical indicators remaining cautious. The sharp Sensex fall reflected broader market weakness, which likely pressured TARC Ltd’s price. Despite the drop, the stock held above its weekly opening level, suggesting resilience amid volatility.
Friday, 9 January: Marginal Recovery to Close the Week
On the final trading day of the week, TARC Ltd edged up 0.20% to close at Rs.176.45, slightly outperforming the Sensex which declined 0.89%. Volume increased to 45,491 shares, indicating renewed buying interest. The modest gain capped a week of mixed price action, reflecting the stock’s ongoing technical transition. Weekly indicators remained mildly bullish, supported by positive volume trends, while monthly signals continued to advise caution. The stock’s ability to outperform the benchmark during a broadly negative market week highlights its relative strength.
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Daily Price Comparison: TARC Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-05 | Rs.179.95 | +2.19% | 37,730.95 | -0.18% |
| 2026-01-06 | Rs.177.50 | -1.36% | 37,657.70 | -0.19% |
| 2026-01-07 | Rs.182.30 | +2.70% | 37,669.63 | +0.03% |
| 2026-01-08 | Rs.176.10 | -3.40% | 37,137.33 | -1.41% |
| 2026-01-09 | Rs.176.45 | +0.20% | 36,807.62 | -0.89% |
Key Takeaways
Positive Signals: The upgrade from Strong Sell to Sell reflects improving technical momentum, with weekly MACD, KST, and OBV indicators turning mildly bullish. The stock outperformed the Sensex during a broadly negative market week, closing with a slight gain of 0.20%. Volume trends on key up days suggest accumulation and investor interest. The company’s recent financial results showed strong sales growth and profitability improvement, despite ongoing operating losses.
Cautionary Notes: Monthly technical indicators remain mixed or mildly bearish, signalling that longer-term confirmation of an uptrend is pending. The stock experienced notable volatility, including a sharp 3.40% decline on 8 January amid market weakness. Financial fundamentals continue to pose risks, with negative EBITDA, weak debt servicing capacity, and low Return on Equity. The Mojo Grade of Sell indicates that while the stock is less unattractive than before, significant downside risks persist.
Conclusion
TARC Ltd’s week was characterised by a tentative technical recovery amid persistent fundamental challenges. The upgrade to a Sell rating and mildly bullish weekly indicators suggest the stock may be stabilising after a period of weakness. However, mixed monthly signals and ongoing financial risks counsel caution. The stock’s relative outperformance versus the Sensex during a declining market week highlights its resilience, but investors should remain vigilant for volatility and monitor evolving technical and fundamental developments closely. Overall, TARC Ltd remains a stock in transition, with potential for moderate gains tempered by significant uncertainties.
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