Transport Corporation of India Ltd Declines 2.79%: Mixed Technical Signals Shape Weekly Trend

Monday, 23 February 2026: Positive Start Amid Broader Market Gains

TCI began the week on a positive note, closing at ₹1,043.30, up 0.94% from the previous close. This gain outpaced the Sensex’s 0.39% rise to 36,817.86, signalling initial investor optimism. The stock’s volume was moderate at 199,000 shares, reflecting steady interest. The price movement aligned with a broader market rally, although TCI remained well below its 52-week high of ₹1,299.05.

Tuesday, 24 February 2026: Upgrade to Hold Boosts Sentiment

On 24 February, MarketsMOJO upgraded Transport Corporation of India Ltd’s rating from Sell to Hold, citing improved technical indicators and attractive valuation metrics. The stock closed at ₹1,031.75, down 1.11% on the day but outperforming the Sensex’s 0.78% decline. The upgrade reflected strong management efficiency, with a return on equity of 18.86% and a low debt-to-equity ratio of 0.02, alongside a reasonable price-to-book ratio of 3.4 and PEG of 1.4. Despite flat quarterly financials, the technical shift from bearish to mildly bearish suggested stabilisation. This nuanced outlook tempered the day’s price decline, as investors digested the rating change amid mixed signals from technical indicators such as MACD and Bollinger Bands.

Wednesday, 25 February 2026: Technical Downgrade Triggers Bearish Momentum

Midweek saw a shift in technical momentum as TCI faced a downgrade in its technical outlook, signalling bearish trends. The stock closed at ₹1,035.40, up 0.35% from the previous day, but intraday volatility increased with a high of ₹1,046.30 and a low of ₹1,027.00. Despite the slight gain, technical indicators such as MACD and moving averages turned bearish, with the stock trading below key averages. The Know Sure Thing (KST) oscillator and Bollinger Bands reinforced the negative momentum, while the Relative Strength Index (RSI) remained neutral. This mixed technical picture suggested caution, with the stock underperforming the Sensex’s 0.41% gain. The downgrade reflected concerns over short-term price weakness amid broader market fluctuations.

Thursday, 26 February 2026: Brief Recovery on Strong Volume

On 26 February, TCI rebounded to close at ₹1,045.95, a 1.02% gain on the day and the week’s high. This recovery was supported by a surge in volume to 1,256,000 shares, indicating renewed buying interest. The stock outperformed the Sensex’s 0.19% rise to 36,748.49. Technical indicators showed a mild bullish tilt on weekly MACD and KST, suggesting short-term momentum improvement. However, monthly indicators remained bearish, reflecting ongoing caution. The stock’s price action near the upper Bollinger Band hinted at resistance, limiting further upside. This day’s performance represented a tentative stabilisation after midweek weakness.

Friday, 27 February 2026: Sharp Decline Amid Mixed Technical Signals

The week concluded with a sharp decline as TCI closed at ₹1,004.70, down 3.94% on the day and 2.79% for the week. This drop contrasted with the Sensex’s 1.16% fall to 36,322.56, indicating relative weakness. Technical momentum shifted from outright bearish to mildly bearish, reflecting a nuanced change in market sentiment. Weekly MACD and KST indicators showed mild bullishness, while monthly indicators remained bearish. The RSI hovered in neutral territory, and Bollinger Bands suggested continued downside risk. Daily moving averages stayed bearish, with the stock trading below key averages. On-Balance Volume (OBV) analysis revealed mixed signals, with weekly OBV mildly bearish but monthly OBV mildly bullish, implying some longer-term accumulation despite short-term selling pressure. The stock’s price action near the ₹1,050 resistance zone and volume patterns underscored the need for caution amid uncertain directional cues.

Key Takeaways

Positive Signals: The upgrade to a Hold rating by MarketsMOJO on 24 February reflected improved technical indicators and attractive valuation metrics, including a price-to-book ratio of 3.4 and a PEG of 1.4. Strong management efficiency, with an ROE of 18.86% and low leverage, underpins the company’s resilience. Weekly MACD and KST indicators showed mild bullishness late in the week, suggesting potential for short-term stabilisation.

Cautionary Signals: Despite these positives, the stock declined 2.79% over the week, underperforming the Sensex’s 0.96% fall. Technical momentum shifted from mildly bearish to outright bearish midweek before a partial recovery and then a sharp drop on Friday. Daily moving averages remained bearish throughout, and Bollinger Bands indicated downside risk. The neutral RSI and mixed volume trends highlight uncertainty, with longer-term monthly indicators still bearish. Flat quarterly financial results and sectoral challenges temper optimism.

Market Context: TCI’s relative underperformance against the Sensex and mixed technical signals suggest investors remain cautious amid broader market volatility. The stock’s strong long-term returns contrast with recent short-term weakness, emphasising the importance of monitoring technical developments and sector dynamics closely.

Conclusion

Transport Corporation of India Ltd experienced a week marked by mixed technical momentum and cautious investor sentiment. The MarketsMOJO upgrade to Hold on 24 February acknowledged improved valuation and technical conditions, yet the stock’s price declined 2.79% over the week, underperforming the benchmark Sensex. Technical indicators presented a complex picture, with short-term signals showing tentative bullishness while longer-term metrics remained bearish. The flat quarterly financial performance and sector headwinds contributed to subdued enthusiasm.

Investors should approach TCI with a balanced perspective, recognising the company’s strong management and attractive valuation alongside the prevailing technical caution. The stock’s recent price action suggests a consolidation phase within a broader range, with resistance near ₹1,050 and support above ₹1,000. Monitoring volume trends, moving averages, and momentum indicators will be critical to identifying a clearer directional bias in the coming weeks. For now, a watchful stance is warranted as the stock navigates this transitional phase.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today