Key Events This Week
Jan 23: Downgrade to Sell rating by MarketsMOJO amid mixed financials and bearish technicals
Jan 27: Technical momentum shifts to mildly bearish with mixed market signals
Jan 29: Technical indicators confirm bearish momentum amid price declines
Jan 30: Week closes at Rs.1,544.45, down 4.34% for the week
Downgrade to Sell Rating Sets the Tone (23 Jan)
MarketsMOJO downgraded Bharti Hexacom Ltd from a Hold to a Sell rating on 23 January 2026, citing a combination of mixed financial results and bearish technical indicators. Despite the company’s robust financial performance, including a 68.56% increase in profit after tax to ₹812.80 crores over six months and a strong ROCE of 20.3%, valuation concerns and deteriorating technical momentum prompted caution.
The stock’s enterprise value to capital employed ratio of 7 indicated an expensive valuation relative to its capital base, while technical indicators such as a bearish weekly MACD and KST, along with a bearish daily moving average trend, signalled weakening momentum. This downgrade marked a pivotal moment, signalling a shift in market sentiment and setting a cautious tone for the week ahead.
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Technical Momentum Shifts Amid Mixed Signals (27 Jan)
On 27 January, Bharti Hexacom’s technical momentum shifted further into bearish territory. The stock closed at Rs.1,573.60, down 2.54% on the day, while the Sensex gained 0.50%. This divergence highlighted the stock’s weakening technical profile despite broader market strength.
Technical indicators revealed a complex picture: the weekly MACD turned bearish, daily moving averages were negative, and Bollinger Bands suggested increased volatility with a mildly bearish stance. However, the weekly RSI remained bullish, indicating some residual upward momentum potential. Volume-based metrics such as the weekly On-Balance Volume (OBV) were mildly bearish, while the monthly OBV remained bullish, suggesting longer-term accumulation despite short-term selling pressure.
This mixed technical landscape underscored the stock’s precarious position, with short-term traders facing headwinds while longer-term investors appeared to hold steady.
Bearish Momentum Confirmed Amid Price Declines (29 Jan)
By 29 January, bearish momentum intensified. Bharti Hexacom closed at Rs.1,559.95, up 1.63% on the day but still reflecting a 6.56% decline over the week. The Sensex rose 0.22% that day, further emphasising the stock’s relative weakness.
Technical indicators confirmed a shift from mildly bearish to outright bearish. Daily moving averages were firmly negative, and the stock traded below key averages. The weekly and monthly Bollinger Bands hugged the lower bands, signalling sustained downward pressure. The weekly MACD remained bearish, and the Know Sure Thing (KST) oscillator aligned with this negative momentum. Dow Theory trends on weekly and monthly charts were mildly bearish, reinforcing the cautious outlook.
Despite this, the monthly OBV was bullish, hinting at some longer-term investor accumulation. The stock’s Market Capitalisation Grade was low at 2, and the Mojo Score had declined to 43.0, reflecting the deteriorating technical and valuation outlook.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-27 | Rs.1,573.60 | -2.54% | 35,786.84 | +0.50% |
| 2026-01-28 | Rs.1,534.90 | -2.46% | 36,188.16 | +1.12% |
| 2026-01-29 | Rs.1,559.95 | +1.63% | 36,266.59 | +0.22% |
| 2026-01-30 | Rs.1,544.45 | -0.99% | 36,185.03 | -0.22% |
Key Takeaways
Positive Signals: Bharti Hexacom continues to demonstrate strong underlying financials, including a 68.56% increase in PAT over six months and a robust ROCE of 20.3%. The monthly On-Balance Volume remains bullish, indicating longer-term accumulation by investors despite short-term selling pressure.
Cautionary Signals: The stock’s valuation remains elevated, with an enterprise value to capital employed ratio of 7, raising concerns about near-term upside. Technical indicators have shifted decisively bearish across daily and weekly timeframes, with moving averages, MACD, and KST signalling downward momentum. The stock underperformed the Sensex by 5.96% over the week, reflecting market caution.
Market Context: While the broader Sensex gained 1.62% during the week, Bharti Hexacom’s 4.34% decline highlights its relative weakness amid sector and market volatility. The downgrade to a Sell rating by MarketsMOJO and the decline in Mojo Score to 43.0 reinforce the need for prudence.
Conclusion
Bharti Hexacom Ltd’s week was marked by a clear shift towards bearish technical momentum and valuation concerns despite strong financial fundamentals. The downgrade to a Sell rating and the stock’s underperformance relative to the Sensex underscore the challenges facing the company in the near term. While longer-term investors may find some comfort in the bullish monthly volume trends and solid profitability, the prevailing technical signals advise caution. Monitoring key support levels and technical indicators will be crucial for assessing any potential stabilisation or recovery in the coming weeks.
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