Key Events This Week
29 Dec 2025: MarketsMOJO downgrades Expleo Solutions to Sell amid technical weakness
29 Dec 2025: Technical indicators confirm bearish momentum and underperformance
31 Dec 2025: Stock rebounds modestly by 1.20% amid broader market gains
2 Jan 2026: Week closes at Rs.970.00, down 2.32% for the week versus Sensex +1.35%
MarketsMOJO Downgrades Expleo Solutions to Sell on 29 Dec 2025
On 29 December 2025, Expleo Solutions was downgraded from a Hold to a Sell rating by MarketsMOJO, citing a deterioration in technical indicators and persistent underperformance relative to the Sensex. The downgrade followed a review of multiple technical metrics, including the Moving Average Convergence Divergence (MACD), Bollinger Bands, and On-Balance Volume (OBV), which collectively signalled bearish momentum across weekly and monthly timeframes.
The stock closed at Rs.971.60 on the downgrade day, down 2.16% from the previous close, reflecting investor caution. Despite a fair valuation with a Price to Book ratio of 2.2 and a dividend yield of 5.1%, the technical weakness and lack of institutional backing weighed heavily on sentiment. Domestic mutual funds hold no stake in the company, which further underscores concerns about growth prospects and price stability.
Technical Indicators Confirm Bearish Momentum Amid Mixed Signals
Technical analysis reveals a complex picture for Expleo Solutions. While the weekly MACD and Know Sure Thing (KST) indicators show mild bullishness, monthly charts have turned decisively bearish. Daily moving averages have crossed into negative territory, signalling short-term selling pressure. The Relative Strength Index (RSI) remains neutral, indicating no immediate oversold or overbought conditions, but Bollinger Bands have shifted bearish on both weekly and monthly scales, suggesting increased volatility and downward pressure.
On-Balance Volume (OBV) trends are mildly bearish weekly, indicating that volume flow favours sellers, although monthly OBV remains inconclusive. Dow Theory assessments show no clear trend, reflecting a consolidation phase amid uncertainty. This technical backdrop contributed to the downgrade and the cautious outlook for the stock.
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Price Movements and Market Context Through the Week
The week began with a sharp decline on 29 December, when the stock fell 2.16% to Rs.971.60, coinciding with the downgrade announcement. The Sensex also declined 0.41% that day, but the stock’s fall was more pronounced, signalling relative weakness.
On 30 December, Expleo Solutions continued to slide, losing 1.59% to close at Rs.956.20, while the Sensex was nearly flat, down just 0.01%. This divergence highlighted the stock’s ongoing underperformance amid broader market stability.
31 December saw a modest recovery for Expleo Solutions, which gained 1.20% to Rs.967.65, supported by a strong Sensex rally of 0.83%. However, this rebound was short-lived, as the stock slipped 0.96% on 1 January to Rs.958.35, despite the Sensex advancing 0.14%.
The week closed on 2 January with a 1.22% gain to Rs.970.00, yet this was insufficient to offset the earlier losses, resulting in a net weekly decline of 2.32%. In contrast, the Sensex rose 1.35% over the same period, underscoring the stock’s relative weakness.
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| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2025-12-29 | Rs.971.60 | -2.16% | 37,140.23 | -0.41% |
| 2025-12-30 | Rs.956.20 | -1.59% | 37,135.83 | -0.01% |
| 2025-12-31 | Rs.967.65 | +1.20% | 37,443.41 | +0.83% |
| 2026-01-01 | Rs.958.35 | -0.96% | 37,497.10 | +0.14% |
| 2026-01-02 | Rs.970.00 | +1.22% | 37,799.57 | +0.81% |
Key Takeaways from the Week
Negative Signals: The downgrade to Sell by MarketsMOJO reflects a clear deterioration in technical momentum, with bearish daily moving averages and monthly MACD and KST indicators. The stock’s consistent underperformance relative to the Sensex, including a 29.45% year-to-date decline, highlights ongoing challenges. Lack of domestic mutual fund participation further signals investor caution.
Positive Factors: Despite the bearish technical outlook, Expleo Solutions reported strong quarterly financials with a 41.1% increase in Profit Before Tax and a 59.4% rise in Profit After Tax compared to the previous four-quarter average. The company maintains a reasonable valuation with a P/B ratio of 2.2 and a dividend yield of 5.1%, supported by a respectable Return on Equity of 14.8%. The low debt-to-equity ratio reduces financial risk.
Market Context: The broader Sensex gained 1.35% during the week, contrasting with the stock’s 2.32% decline. This divergence emphasises the stock’s relative weakness amid a generally positive market environment. The technical signals suggest that short-term traders may find some support, but longer-term momentum remains negative.
Conclusion
Expleo Solutions Ltd’s week was marked by a significant technical downgrade and sustained bearish momentum, resulting in a 2.32% weekly decline against a 1.35% gain in the Sensex. While the company’s recent financial performance and valuation metrics offer some positives, the prevailing technical weakness and lack of institutional support present cautionary signals. Investors should closely monitor technical developments and broader market trends before considering new exposure, as the stock currently faces headwinds that may limit near-term upside.
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