Key Events This Week
16 Feb: Week opens at ₹12,971.60 with marginal gain
17 Feb: Downgrade to Hold amid mixed technical signals
18 Feb: Technical momentum shifts bullish
19 Feb: Intraday low hit amid price pressure, closing at ₹12,676.10
20 Feb: Significant open interest surge in derivatives, price recovers to ₹12,764.40
16 February 2026: Modest Start Amid Positive Market Momentum
UltraTech Cement Ltd opened the week at ₹12,971.60, registering a slight gain of 0.05% on the day. This modest increase came despite the Sensex rallying 0.70% to close at 36,787.89. The stock’s volume was relatively low at 1,920 shares, indicating cautious participation. The price remained near its 52-week high, signalling underlying resilience as the broader market showed strength.
17 February 2026: Downgrade to Hold Reflects Mixed Technical and Valuation Signals
On 17 February, UltraTech Cement Ltd was downgraded from a Buy to a Hold rating by MarketsMOJO, citing mixed technical indicators and valuation concerns. The stock price edged up 0.10% to ₹12,985.10, slightly outperforming the Sensex’s 0.32% gain. Technical momentum shifted from bullish to mildly bullish, with weekly MACD remaining positive but monthly MACD turning mildly bearish. The Relative Strength Index (RSI) on a weekly basis turned bearish, signalling weakening short-term buying pressure.
Valuation metrics showed the stock trading at a high enterprise value to capital employed ratio of 4.3 and a return on capital employed of 11.4%, categorising it as expensive despite a relative discount to peers. Financially, the company reported strong Q3 FY25-26 results with a 54.9% year-on-year growth in profit before tax excluding other income and a 31.9% rise in profit after tax, supporting the stock’s quality despite the cautious rating.
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18 February 2026: Technical Momentum Shifts Bullish Amid Consolidation
The stock demonstrated a technical momentum upgrade on 18 February, moving from mildly bullish to bullish. UltraTech Cement Ltd closed at ₹13,048.25, gaining 0.49%, outperforming the Sensex’s 0.43% rise. Daily moving averages turned decisively bullish, with the price comfortably above key short- and medium-term averages. Bollinger Bands on weekly and monthly charts confirmed a bullish bias, while the RSI remained neutral, indicating room for further gains without immediate overbought risk.
Despite the bullish technical signals, the monthly MACD and Know Sure Thing (KST) oscillator remained mildly bearish, suggesting some caution for longer-term momentum. The stock’s relative performance remained strong, with year-to-date returns at 10.07%, well above the Sensex’s negative 2.08%. This technical upgrade reflected growing market confidence amid a stable valuation environment.
19 February 2026: Intraday Low Amid Price Pressure and Market Weakness
On 19 February, UltraTech Cement Ltd faced significant price pressure, closing at ₹12,676.10, down 2.85% and hitting an intraday low of ₹12,650. This decline outpaced the Cement sector’s 2.24% fall and the Sensex’s 1.45% drop, signalling short-term weakness. The stock traded below its 5-day and 20-day moving averages, reflecting immediate selling pressure after three consecutive days of gains.
The broader market environment was challenging, with the Sensex reversing sharply to close down 1.69%. Despite this setback, UltraTech Cement’s medium- to long-term technical trend remained positive, trading above its 50-day, 100-day, and 200-day moving averages. The intraday low and underperformance relative to the sector highlighted a potential short-term correction phase amid profit-taking and cautious sentiment.
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20 February 2026: Surge in Open Interest Signals Renewed Market Engagement
UltraTech Cement Ltd saw a significant surge in open interest in its derivatives segment on 20 February, rising 17.13% to 79,794 contracts. This increase, alongside a daily volume of 60,190 contracts, indicated heightened market participation and fresh directional bets. The stock closed at ₹12,764.40, gaining 0.70% on the day and outperforming the Sensex’s 0.41% rise.
The futures value reached ₹1,73,775 lakhs, with options turnover at approximately ₹21,258 crores, underscoring strong liquidity and institutional interest. Delivery volumes also increased modestly, suggesting genuine accumulation rather than speculative trading. Despite the mojo grade downgrade to Hold, the derivatives activity and price momentum near the 52-week high of ₹13,110 reflect cautious optimism among traders.
Technical positioning remained robust, with the stock above its 20-day, 50-day, 100-day, and 200-day moving averages, though slightly below the 5-day average, indicating short-term consolidation amid a longer-term uptrend. The cement sector’s resilience and government infrastructure focus continue to support the stock’s appeal.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | ₹12,971.60 | +0.05% | 36,787.89 | +0.70% |
| 2026-02-17 | ₹12,985.10 | +0.10% | 36,904.38 | +0.32% |
| 2026-02-18 | ₹13,048.25 | +0.49% | 37,062.35 | +0.43% |
| 2026-02-19 | ₹12,676.10 | -2.85% | 36,523.88 | -1.45% |
| 2026-02-20 | ₹12,764.40 | +0.70% | 36,674.32 | +0.41% |
Key Takeaways
UltraTech Cement Ltd’s week was characterised by a complex interplay of technical shifts, valuation concerns, and active market participation. The downgrade to Hold reflected a more cautious stance due to mixed technical signals and expensive valuation metrics, despite strong financial results and market leadership.
The stock’s technical momentum oscillated between mildly bullish and bullish, with daily moving averages and Bollinger Bands supporting upward momentum, while monthly MACD and RSI suggested caution. The intraday low on 19 February highlighted short-term price pressure amid broader market weakness, but the subsequent surge in derivatives open interest on 20 February indicated renewed trader confidence and positioning for potential upside.
Relative to the Sensex, UltraTech Cement underperformed over the week, declining 1.54% against a 0.39% gain in the benchmark. However, the stock’s longer-term returns remain robust, with significant outperformance over one, three, five, and ten-year horizons, underscoring its quality and resilience within the cement sector.
Conclusion
UltraTech Cement Ltd’s performance in the week ending 20 February 2026 reflects a nuanced market environment. While the stock faced short-term headwinds and a rating downgrade, its strong fundamentals, large market capitalisation, and active derivatives market participation suggest sustained investor interest. The mixed technical signals warrant a cautious approach, with investors advised to monitor momentum indicators and volume trends closely. The stock’s leadership position in the cement sector and solid long-term track record continue to underpin its appeal amid evolving market dynamics.
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