Hexaware Technologies Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Trend Overview and Price Movement

Hexaware Technologies Ltd, a mid-cap player in the Computers - Software & Consulting sector, closed at ₹691.00 on 5 February 2026, down 4.89% from the previous close of ₹726.50. The intraday range saw a high of ₹720.70 and a low of ₹686.00, reflecting heightened volatility. The stock remains well below its 52-week high of ₹900.15 but comfortably above its 52-week low of ₹592.95.

The technical trend has shifted from mildly bearish to outright bearish, signalling increased selling pressure. This is corroborated by the daily moving averages, which are firmly bearish, indicating that the short-term price momentum is weakening. The stock’s inability to sustain levels above the moving averages suggests a lack of bullish conviction among traders.

Momentum Indicators: MACD and RSI Analysis

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD remains bearish, confirming the downtrend in the medium term. The monthly MACD is mildly bearish, indicating that while the longer-term momentum is weakening, it has not yet turned decisively negative. This divergence between weekly and monthly MACD readings suggests that the stock may be in a consolidation phase before a clearer directional move emerges.

Relative Strength Index (RSI) readings provide little directional guidance at present, with both weekly and monthly RSI showing no clear signal. This neutral stance implies that the stock is neither overbought nor oversold, leaving room for either a rebound or further decline depending on broader market conditions and sectoral trends.

Bollinger Bands and KST Indicator Insights

Bollinger Bands on the weekly chart are bearish, indicating that the stock price is trending towards the lower band, which often signals increased volatility and potential downside risk. Conversely, the monthly Bollinger Bands are mildly bullish, suggesting some underlying support at longer time frames. This contrast highlights the stock’s current tussle between short-term weakness and longer-term resilience.

The Know Sure Thing (KST) indicator adds further nuance. Weekly KST readings are bullish, hinting at potential short-term upward momentum or a corrective bounce. However, the monthly KST remains mildly bearish, reinforcing the view that the broader trend is still under pressure.

Volume and On-Balance Volume (OBV) Trends

On-Balance Volume (OBV) analysis reveals a mildly bearish trend on the weekly chart, indicating that volume flow is not supporting price advances. The monthly OBV shows no clear trend, suggesting indecision among investors over the longer term. This volume pattern aligns with the overall cautious sentiment surrounding the stock.

Dow Theory and Moving Averages Confirm Bearish Bias

Dow Theory assessments on both weekly and monthly time frames are mildly bearish, reinforcing the technical narrative of a weakening trend. The daily moving averages, which are bearish, further confirm that the stock is under selling pressure in the short term. This confluence of bearish signals across multiple technical frameworks suggests that Hexaware Technologies Ltd is facing significant headwinds.

Comparative Performance: Hexaware vs Sensex

Examining Hexaware’s returns relative to the benchmark Sensex reveals underperformance in recent periods. Over the past week, Hexaware declined by 0.57%, while the Sensex gained 1.79%. The one-month return for Hexaware was -7.99%, significantly lagging the Sensex’s -2.27%. Year-to-date, the stock has fallen 9.63%, compared to a modest Sensex decline of 1.65%. Over longer horizons, Hexaware’s returns have been positive but still trail the benchmark, with a five-year return of 46.79% versus Sensex’s 65.60%, and a ten-year return of 193.67% against Sensex’s 244.38%.

Mojo Score and Grade Update

MarketsMOJO’s proprietary scoring system currently assigns Hexaware Technologies Ltd a Mojo Score of 51.0, reflecting a Hold rating. This represents a downgrade from the previous Buy grade, effective 12 January 2026. The Market Cap Grade stands at 2, indicating a mid-cap classification with moderate liquidity and market presence. The downgrade reflects the deteriorating technical parameters and the cautious outlook from a momentum perspective.

Investment Implications and Outlook

Investors should approach Hexaware Technologies Ltd with caution given the current technical backdrop. The bearish momentum across multiple indicators suggests that the stock may face further downside pressure in the near term. The lack of clear RSI signals and mixed monthly Bollinger Bands imply that any recovery attempts could be short-lived unless supported by fundamental catalysts or broader sectoral strength.

Longer-term investors may find value in the stock’s attractive valuation relative to its historical highs and the broader market, especially if the company’s profitability and growth momentum continue to improve. However, the downgrade to a Hold rating by MarketsMOJO underscores the need for careful monitoring of technical signals and market conditions before committing fresh capital.

In summary, Hexaware Technologies Ltd is navigating a challenging technical environment marked by bearish moving averages, negative MACD momentum on the weekly scale, and subdued volume trends. While some short-term bullish signals exist, the overall trend remains cautious, warranting a conservative stance for now.

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