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

Technical Momentum and Trend Analysis

Recent technical evaluations reveal that Data Patterns (India) Ltd’s momentum has softened considerably. The weekly Moving Average Convergence Divergence (MACD) indicator has turned bearish, reflecting a decline in upward momentum over the short term. Meanwhile, the monthly MACD remains mildly bearish, suggesting that the longer-term trend is also under pressure, albeit less severely. This dual timeframe bearishness indicates that the stock is struggling to maintain its previous bullish trajectory.

The Relative Strength Index (RSI) further corroborates this weakening momentum. On a weekly basis, the RSI has dipped into bearish territory, signalling that the stock is losing strength and may be vulnerable to further downside. However, the monthly RSI remains neutral with no clear signal, implying that the longer-term momentum has yet to decisively shift. This divergence between weekly and monthly RSI readings highlights the current uncertainty surrounding the stock’s direction.

Bollinger Bands and Moving Averages: Conflicting Signals

Bollinger Bands, which measure volatility and potential price extremes, have turned bearish on both weekly and monthly charts. This suggests that Data Patterns is experiencing increased downward pressure and may be trading near the lower band, often a sign of oversold conditions or a potential reversal zone. However, the daily moving averages present a mildly bullish picture, indicating that short-term price action still retains some upward bias. This conflict between short-term bullishness and medium-term bearishness points to a consolidation phase, where the stock is likely to trade sideways as investors digest recent price movements.

Additional Technical Indicators and Market Sentiment

The Know Sure Thing (KST) indicator adds further nuance to the analysis. Weekly KST readings are mildly bearish, aligning with the MACD and RSI weekly signals, while the monthly KST remains bullish. This suggests that while short-term momentum is waning, the longer-term outlook retains some optimism. The Dow Theory assessment echoes this mixed sentiment, with a mildly bearish weekly trend and no clear monthly trend established.

On-Balance Volume (OBV) analysis shows no clear trend on a weekly basis but remains bullish monthly, indicating that despite recent price weakness, accumulation may be occurring over the longer term. This divergence between price and volume trends often precedes a significant move, either upward or downward, depending on subsequent market developments.

Price Performance and Market Context

Data Patterns closed at ₹2,485.60, down 2.26% from the previous close of ₹2,543.15, with intraday trading ranging between ₹2,473.35 and ₹2,566.95. The stock remains well below its 52-week high of ₹3,267.20 but comfortably above its 52-week low of ₹1,350.50, reflecting a wide trading range over the past year.

Comparing returns with the broader Sensex index reveals that Data Patterns has underperformed in the short term. Over the past week, the stock declined by 5.06%, significantly lagging the Sensex’s modest 0.75% drop. Similarly, the one-month return was -2.71% versus the Sensex’s -1.98%, and year-to-date performance shows a 5.26% loss against the Sensex’s 2.32% decline. However, over longer horizons, Data Patterns has outpaced the benchmark, delivering an 8.88% gain over one year compared to the Sensex’s 8.65%, and an impressive 100.35% return over three years versus the Sensex’s 36.79%.

Mojo Score and Rating Revision

MarketsMOJO’s proprietary scoring system currently assigns Data Patterns a Mojo Score of 54.0, reflecting a Hold rating. This marks a downgrade from the previous Buy rating as of 1 December 2025, signalling a more cautious stance amid the recent technical deterioration. The Market Cap Grade stands at 3, indicating a mid-tier valuation relative to peers in the Aerospace & Defense sector.

The downgrade aligns with the technical trend shift from mildly bullish to sideways, suggesting that while the stock is not yet in a clear downtrend, it lacks the momentum to sustain significant gains in the near term. Investors should weigh this Hold rating against the company’s strong long-term fundamentals and sector positioning.

Sector and Industry Considerations

Operating within the Aerospace & Defense sector, Data Patterns benefits from a specialised niche with long-term growth potential driven by increasing defence budgets and technological advancements. However, the sector’s cyclical nature and sensitivity to geopolitical developments can introduce volatility, as reflected in the stock’s recent price fluctuations and technical signals.

Given the mixed technical indicators and sideways momentum, investors may consider a cautious approach, monitoring key support levels near ₹2,450 and resistance around ₹2,600. A sustained break above or below these levels, confirmed by volume and momentum indicators, could provide clearer directional cues.

Investor Takeaway and Outlook

Data Patterns (India) Ltd’s current technical profile suggests a period of consolidation and uncertainty. The bearish weekly MACD and RSI, combined with bearish Bollinger Bands, point to short-term weakness, while mildly bullish daily moving averages and monthly KST indicate that the longer-term uptrend is not yet broken.

Investors should closely monitor volume trends and key technical levels to gauge the stock’s next directional move. The divergence between short-term bearishness and longer-term bullish signals implies that a decisive breakout or breakdown could be imminent, making it essential to stay alert to evolving market conditions.

Given the Hold rating and recent downgrade by MarketsMOJO, a prudent strategy may involve maintaining current positions while awaiting clearer technical confirmation before committing additional capital. Long-term investors with conviction in the Aerospace & Defense sector’s growth prospects may view current weakness as a potential entry point, provided risk is managed carefully.

Summary of Key Technical Indicators:

• MACD: Weekly Bearish, Monthly Mildly Bearish


• RSI: Weekly Bearish, Monthly Neutral


• Bollinger Bands: Bearish on Weekly and Monthly


• Moving Averages: Daily Mildly Bullish


• KST: Weekly Mildly Bearish, Monthly Bullish


• Dow Theory: Weekly Mildly Bearish, Monthly No Trend


• OBV: Weekly No Trend, Monthly Bullish

These mixed signals underscore the importance of a balanced approach, combining technical analysis with fundamental insights to navigate the stock’s evolving landscape.

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