Data Patterns (India) Ltd Faces Technical Momentum Shift Amid Mixed Indicators

Technical Trend Overview and Price Movement

As of 2 January 2026, Data Patterns (India) Ltd closed at ₹2,602.30, down 0.82% from the previous close of ₹2,623.70. The stock’s intraday range was relatively narrow, with a low of ₹2,594.20 and a high of ₹2,633.85. Despite this modest decline, the stock remains well above its 52-week low of ₹1,350.50, though still some distance from its 52-week high of ₹3,267.20. This price action reflects a consolidation phase following a period of strong gains over the past three years, where the stock has outperformed the Sensex by delivering a 135.89% return compared to the benchmark’s 40.02% over the same period.

MACD and Momentum Indicators Signal Caution

The Moving Average Convergence Divergence (MACD) indicator, a widely used momentum oscillator, has turned mildly bearish on both weekly and monthly timeframes. This suggests that the upward momentum that supported the stock’s rally is waning, with the MACD line crossing below its signal line on weekly charts. Such a development often precedes a period of price consolidation or correction, signalling that buyers may be losing conviction in the near term.

Complementing this, the Relative Strength Index (RSI) on the weekly chart has slipped into bearish territory, indicating that the stock is experiencing increased selling pressure. However, the monthly RSI remains neutral, implying that the longer-term momentum has yet to deteriorate significantly. This divergence between weekly and monthly RSI readings highlights the transitional nature of the current trend.

Moving Averages and Bollinger Bands Reflect Mixed Signals

On the daily chart, moving averages continue to show a mildly bullish bias, with the stock price hovering just above its short-term averages. This suggests that while momentum has softened, the underlying trend has not fully reversed. Conversely, Bollinger Bands on the weekly timeframe have turned bearish, with the price approaching the lower band, signalling increased volatility and potential downside risk. Monthly Bollinger Bands, however, remain sideways, reinforcing the notion of a broader consolidation phase rather than a decisive trend shift.

KST and Dow Theory Indicate Uncertainty

The Know Sure Thing (KST) indicator presents a nuanced picture: mildly bearish on the weekly scale but bullish on the monthly. This split suggests that short-term momentum is weakening, but the longer-term trend may still hold some strength. Meanwhile, Dow Theory assessments on both weekly and monthly charts report no clear trend, underscoring the current market indecision surrounding Data Patterns.

Volume and On-Balance Volume (OBV) Trends

Volume-based indicators such as On-Balance Volume (OBV) show no discernible trend on either weekly or monthly timeframes. This lack of volume confirmation for price moves adds to the uncertainty, as sustained price advances or declines typically require accompanying volume support. The absence of a clear OBV trend suggests that market participants are cautious, awaiting further catalysts before committing decisively.

Comparative Performance and Market Context

When benchmarked against the Sensex, Data Patterns has delivered mixed returns recently. Over the past week, the stock declined by 2.61%, significantly underperforming the Sensex’s modest 0.26% gain. The one-month performance is more pronounced, with the stock falling 11.13% compared to the Sensex’s 0.53% decline. Year-to-date, the stock is down 0.82%, slightly worse than the Sensex’s near-flat 0.04% loss. However, over a longer horizon, Data Patterns has outpaced the benchmark, delivering a 4.02% return over one year versus the Sensex’s 8.51%, and a remarkable 135.89% over three years compared to the Sensex’s 40.02%.

Mojo Score and Rating Revision

Reflecting these technical developments and recent price action, MarketsMOJO has revised Data Patterns’ Mojo Grade from Buy to Hold as of 1 December 2025. The current Mojo Score stands at 54.0, indicating a neutral stance. The Market Cap Grade remains at 3, consistent with the company’s mid-tier market capitalisation within the Aerospace & Defense sector. This downgrade signals a more cautious outlook, suggesting that investors should monitor the stock closely for confirmation of trend direction before increasing exposure.

Implications for Investors

The shift from a mildly bullish to a sideways technical trend implies that Data Patterns may be entering a phase of consolidation or range-bound trading. The bearish weekly MACD and RSI readings caution against aggressive buying in the near term, while the mildly bullish daily moving averages and monthly KST suggest that the longer-term uptrend is not yet broken. Investors should watch for a decisive breakout above recent highs or a breakdown below key support levels to confirm the next directional move.

Sector and Industry Considerations

Operating within the Aerospace & Defense sector, Data Patterns is subject to sector-specific dynamics including government defence spending, export opportunities, and technological innovation cycles. The sector has seen mixed performance recently, with some stocks benefiting from renewed defence budgets while others face headwinds from geopolitical uncertainties. Data Patterns’ technical signals should therefore be interpreted in the context of these broader industry trends.

Outlook and Conclusion

In summary, Data Patterns (India) Ltd is currently navigating a complex technical environment characterised by weakening short-term momentum and a sideways trend. While the stock’s long-term fundamentals and sector positioning remain intact, the recent downgrade to a Hold rating by MarketsMOJO reflects the need for caution. Investors should consider the mixed signals from key technical indicators such as MACD, RSI, and moving averages, and remain vigilant for confirmation of trend direction before making significant portfolio adjustments.

Given the stock’s recent underperformance relative to the Sensex and the technical indicators signalling a pause in momentum, a prudent approach would be to monitor price action closely over the coming weeks. Should the stock regain upward momentum with supportive volume and positive technical signals, it may present a renewed buying opportunity. Conversely, a sustained breakdown below support levels could indicate a deeper correction phase.

Key Technical Metrics Summary:

• Current Price: ₹2,602.30


• 52-Week High / Low: ₹3,267.20 / ₹1,350.50


• Weekly MACD: Mildly Bearish


• Monthly MACD: Mildly Bearish


• Weekly RSI: Bearish


• Monthly RSI: No Signal


• Daily Moving Averages: Mildly Bullish


• Weekly Bollinger Bands: Bearish


• Monthly Bollinger Bands: Sideways


• Weekly KST: Mildly Bearish


• Monthly KST: Bullish


• Dow Theory (Weekly & Monthly): No Trend


• OBV (Weekly & Monthly): No Trend


• Mojo Score: 54.0 (Hold)


• Market Cap Grade: 3

Investors should integrate these technical insights with fundamental analysis and sector outlooks to make informed decisions regarding Data Patterns (India) Ltd.

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