ADC India Communications Ltd Sees Technical Momentum Shift Amid Mixed Market Signals

Feb 03 2026 08:01 AM IST
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ADC India Communications Ltd has experienced a subtle shift in its technical momentum, moving from a bearish to a mildly bearish stance, as reflected in recent market data and technical indicators. Despite a modest day gain of 2.40%, the stock’s broader technical signals present a complex picture for investors navigating the Telecom Equipment & Accessories sector.
ADC India Communications Ltd Sees Technical Momentum Shift Amid Mixed Market Signals

Current Price and Market Context

As of 3 February 2026, ADC India Communications Ltd is trading at ₹1,379.65, up from the previous close of ₹1,347.30. The stock’s intraday range has been relatively narrow, with a low of ₹1,340.00 and a high of ₹1,385.95. This price action remains well below its 52-week high of ₹2,090.00, yet comfortably above the 52-week low of ₹901.25, indicating a recovery phase from its lows but still distant from peak valuations.

Technical Indicator Overview

The company’s technical trend has shifted from outright bearish to mildly bearish, signalling a tentative improvement in price momentum but still cautionary for traders. The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart, while the monthly MACD has improved to mildly bearish. This suggests that while short-term momentum is weak, longer-term momentum is showing signs of stabilisation.

The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no clear signal, hovering in neutral territory. This lack of momentum extremes implies the stock is neither overbought nor oversold, which could indicate a consolidation phase.

Bollinger Bands and Moving Averages

Bollinger Bands on weekly and monthly charts are mildly bearish, reflecting moderate volatility with a slight downward bias. The daily moving averages also align with this mildly bearish outlook, indicating that the stock price is trading near or just below key moving averages, which often act as resistance levels.

Additional Technical Signals

The Know Sure Thing (KST) oscillator remains bearish on the weekly chart but has improved to mildly bearish on the monthly chart, reinforcing the mixed momentum signals. Meanwhile, Dow Theory analysis shows no definitive trend on either weekly or monthly timeframes, suggesting indecision among market participants.

On-Balance Volume (OBV) data is not explicitly available, but given the price action and other indicators, volume trends may be subdued or neutral, further supporting the consolidation narrative.

Performance Relative to Sensex

Examining returns relative to the benchmark Sensex index provides additional context. Over the past week, ADC India outperformed the Sensex with a 0.29% gain versus 0.16% for the index. However, over the last month, the stock declined by 9.25%, significantly underperforming the Sensex’s 4.78% drop. Year-to-date, the stock is down 1.01%, while the Sensex has fallen 4.17%, indicating a relative resilience in the current year.

Longer-term returns are impressive, with a three-year gain of 211.43% compared to the Sensex’s 36.26%, a five-year gain of 628.05% versus 64.00%, and a ten-year gain of 426.18% against the Sensex’s 232.80%. These figures highlight the stock’s strong historical growth despite recent volatility.

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Mojo Score and Rating Update

MarketsMOJO assigns ADC India Communications Ltd a Mojo Score of 28.0, reflecting a Strong Sell rating as of 8 January 2026, an upgrade from the previous Sell grade. This downgrade in sentiment underscores the cautious stance investors should adopt given the mixed technical signals and sector challenges. The company’s market capitalisation grade stands at 4, indicating a mid-sized market cap within its industry peer group.

Sector and Industry Considerations

Operating within the Telecom Equipment & Accessories sector, ADC India faces headwinds from evolving technology demands and competitive pressures. The sector itself has experienced volatility, with many players adjusting to shifts in 5G infrastructure rollouts and supply chain constraints. ADC India’s technical indicators suggest it is navigating these challenges with some resilience but remains vulnerable to broader market fluctuations.

Investor Implications and Outlook

For investors, the mildly bearish technical trend signals a need for caution. The absence of strong RSI signals and the mixed MACD readings imply that the stock may be in a consolidation phase rather than a clear directional move. Traders should watch for a decisive break above key moving averages or a shift in MACD momentum to confirm a trend reversal.

Long-term investors may find value in the stock’s robust multi-year returns, but the current technical environment suggests that entry points should be carefully timed. Monitoring volume trends and sector developments will be crucial in assessing the stock’s next directional move.

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Summary

ADC India Communications Ltd’s recent technical parameter changes reflect a nuanced shift in momentum. While the stock has moved from bearish to mildly bearish territory, key indicators such as MACD and Bollinger Bands suggest ongoing caution. The lack of strong RSI signals and neutral Dow Theory trends further complicate the outlook.

Despite short-term volatility and a Strong Sell Mojo Grade, the company’s impressive long-term returns and sector positioning offer potential opportunities for discerning investors. Close monitoring of technical signals and sector developments will be essential to navigate the stock’s path forward.

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