Data Patterns (India) Ltd Faces Bearish Momentum Amid Mixed Technical Signals

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Data Patterns (India) Ltd, a key player in the Aerospace & Defense sector, has experienced a notable shift in its technical momentum, moving from a mildly bearish stance to a more pronounced bearish trend. Despite a recent uptick in price, several technical indicators suggest caution for investors as the stock grapples with mixed signals across weekly and monthly timeframes.
Data Patterns (India) Ltd Faces Bearish Momentum Amid Mixed Technical Signals

Price Movement and Market Context

The stock closed at ₹2,557.45 on 3 Feb 2026, marking a 3.52% increase from the previous close of ₹2,470.40. Intraday, it traded between ₹2,453.30 and ₹2,613.05, reflecting heightened volatility. However, this rally remains well below its 52-week high of ₹3,267.20, indicating room for recovery but also underlying resistance. The 52-week low stands at ₹1,350.50, underscoring the stock’s wide trading range over the past year.

Comparatively, Data Patterns has outperformed the Sensex over longer horizons. The stock delivered a 21.2% return over the past year against the Sensex’s 5.37%, and an impressive 82.43% over three years compared to the Sensex’s 36.26%. However, recent short-term returns have been less encouraging, with a 1-month decline of 2.37% versus the Sensex’s 4.78% fall, and a year-to-date drop of 2.53% against the Sensex’s 4.17% decline.

Technical Indicators Signal a Bearish Shift

The technical landscape for Data Patterns has shifted notably. The overall technical trend has deteriorated from mildly bearish to outright bearish, signalling increased downside risk. The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart and mildly bearish on the monthly chart, suggesting that momentum is weakening but with some longer-term support.

The Relative Strength Index (RSI) shows no clear signal on both weekly and monthly timeframes, indicating a lack of strong momentum either way. This neutral RSI reading suggests the stock is neither overbought nor oversold, leaving room for further directional movement based on other factors.

Bollinger Bands on the weekly chart are bearish, reflecting price pressure near the lower band, while the monthly bands remain sideways, indicating consolidation over the longer term. Daily moving averages reinforce the bearish outlook, with the stock trading below key averages, signalling downward momentum in the short term.

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Additional Technical Signals and Trend Analysis

The Know Sure Thing (KST) indicator presents a mixed picture: bearish on the weekly chart but bullish on the monthly chart. This divergence suggests that while short-term momentum is weakening, there may be underlying strength over a longer horizon. Investors should monitor this closely for potential trend reversals.

Dow Theory assessments show no clear trend on the weekly timeframe but a mildly bearish stance monthly, reinforcing the cautious outlook. On-Balance Volume (OBV) readings show no discernible trend on either timeframe, indicating that volume is not currently confirming price movements, which adds to the uncertainty.

Overall, the technical parameters reflect a stock in transition, with short-term bearishness tempered by some longer-term bullish signals. This complexity requires investors to weigh both momentum and fundamental factors carefully.

Mojo Score and Market Capitalisation Insights

Data Patterns holds a Mojo Score of 48.0, categorised as a Sell, downgraded from a previous Hold rating on 29 Jan 2026. This downgrade reflects the deteriorating technical outlook and increased risk profile. The company’s Market Cap Grade stands at 3, indicating a mid-tier market capitalisation within its sector.

Given the Aerospace & Defense sector’s cyclical nature and sensitivity to geopolitical developments, the current technical signals suggest investors should exercise caution. The stock’s recent price momentum, while positive intraday, does not yet confirm a sustained uptrend.

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Investor Takeaways and Outlook

Investors analysing Data Patterns should note the stock’s strong long-term performance relative to the Sensex, with returns more than doubling the benchmark over three years. However, the recent technical deterioration and downgrade to a Sell rating highlight increased near-term risks.

The absence of strong RSI signals and neutral OBV trends suggest that volume and momentum are not yet aligned to support a robust rally. The bearish daily moving averages and weekly Bollinger Bands reinforce the need for caution, particularly for short-term traders.

Long-term investors may find value in the stock’s underlying fundamentals and sector positioning, but should remain vigilant for confirmation of trend reversals, especially given the mixed KST and Dow Theory signals. Monitoring price action around key support levels near ₹2,450 and resistance near ₹2,600 will be critical in the coming weeks.

In summary, Data Patterns (India) Ltd currently exhibits a complex technical profile with a bearish tilt. While the stock’s recent price gains offer some optimism, the broader technical indicators counsel prudence. Investors should balance these signals with fundamental analysis and sector outlook before making allocation decisions.

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