Recent Price Movement and Market Context
As of 20 Feb 2026, TARC Ltd closed at ₹157.40, down 2.81% from the previous close of ₹161.95. The stock traded within a range of ₹156.65 to ₹163.50 during the day, remaining well below its 52-week high of ₹206.10 but comfortably above the 52-week low of ₹103.45. This price action reflects a short-term correction phase after a strong rally over the past year.
Comparatively, TARC Ltd’s returns have outpaced the Sensex over longer horizons, with a 1-year return of 30.46% versus Sensex’s 8.64%, and an impressive 3-year return of 313.12% compared to Sensex’s 35.24%. However, in the short term, the stock has underperformed, with a 1-month return of -5.09% against Sensex’s -0.90%, signalling emerging weakness.
Technical Trend Shift: From Sideways to Mildly Bearish
The technical trend for TARC Ltd has shifted from a sideways consolidation phase to a mildly bearish stance. This transition is corroborated by several key indicators. The daily moving averages are currently bearish, indicating that the stock’s short-term price is trading below its average levels, which often signals downward momentum.
Meanwhile, the weekly MACD (Moving Average Convergence Divergence) remains mildly bullish, suggesting some underlying positive momentum on a shorter timeframe. However, the monthly MACD has turned mildly bearish, reflecting weakening momentum over the longer term. This divergence between weekly and monthly MACD readings points to a complex technical picture where short-term optimism is tempered by longer-term caution.
RSI and Bollinger Bands Analysis
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, leaving room for further directional movement based on other technical factors.
Bollinger Bands present a mixed scenario: weekly bands are bullish, suggesting price support and potential for upward movement in the near term, while monthly bands are mildly bearish, indicating that the stock may face resistance and volatility over the longer horizon.
Strong fundamentals, steady climb upward! This Large Cap from Telecommunication sector earned its Reliable Performer badge through consistent execution. Safety meets solid returns here!
- - Reliable Performer certified
- - Consistent execution proven
- - Large Cap safety pick
Additional Technical Indicators: KST, Dow Theory, and OBV
The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, shows a bullish signal on the weekly chart but a mildly bearish stance on the monthly chart. This again highlights the mixed momentum across different timeframes.
Dow Theory analysis reveals no clear trend on the weekly scale, while the monthly perspective is mildly bullish, suggesting that the broader market forces may still favour upward movement over the medium term.
On the volume front, the On-Balance Volume (OBV) indicator is mildly bullish weekly and bullish monthly, indicating that buying pressure is still present and could support price stability or recovery if other technical hurdles are overcome.
Mojo Score and Grade Update
TARC Ltd’s Mojo Score currently stands at 23.0, reflecting a Strong Sell rating, which is a downgrade from the previous Sell grade assigned on 13 Jan 2026. This downgrade signals increased caution from analysts, likely influenced by the deteriorating technical indicators and recent price weakness. The company’s market capitalisation grade is 3, indicating a smaller market cap relative to peers, which may contribute to higher volatility and risk.
Investment Implications and Outlook
Investors should weigh the mixed technical signals carefully. While long-term returns have been robust, the recent shift to a mildly bearish trend and the downgrade to a Strong Sell grade suggest that near-term price action could remain under pressure. The bearish daily moving averages and monthly MACD, combined with the stock’s underperformance relative to the Sensex over the past month and year-to-date, warrant a cautious stance.
However, the presence of bullish weekly indicators such as MACD, Bollinger Bands, KST, and OBV implies that short-term rebounds are possible, especially if the stock finds support near current levels around ₹157.40. Traders with a shorter horizon might consider these signals for tactical entries, but longer-term investors should remain vigilant for confirmation of trend reversals.
TARC Ltd or something better? Our SwitchER feature analyzes this small-cap Realty stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Comparative Sector and Market Performance
Within the Realty sector, TARC Ltd’s recent technical deterioration contrasts with some peers that have maintained stronger momentum. The sector itself has faced headwinds due to macroeconomic factors such as rising interest rates and regulatory changes, which have dampened investor enthusiasm.
Against the broader market, TARC Ltd’s 1-year and 3-year returns remain impressive, underscoring the company’s growth potential and past execution. However, the current technical signals and downgrade in Mojo Grade suggest that investors should monitor the stock closely for signs of sustained weakness or recovery.
Summary
In summary, TARC Ltd is at a technical crossroads. The shift from sideways to mildly bearish trend, bearish daily moving averages, and a Strong Sell Mojo Grade downgrade highlight caution. Yet, weekly bullish indicators and strong long-term returns provide a nuanced picture. Investors should consider these mixed signals carefully, balancing short-term risks against the company’s historical performance and sector outlook.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
