Technical Trend Overview
Recent analysis reveals that Hexaware’s technical trend has softened from mildly bullish to sideways, indicating a pause in upward momentum. The daily moving averages have turned mildly bearish, suggesting short-term caution among traders. Meanwhile, the weekly and monthly indicators present a mixed picture, with some bullish signals counterbalanced by mild bearish tendencies.
MACD Signals: Divergent Weekly and Monthly Perspectives
The Moving Average Convergence Divergence (MACD) indicator remains bullish on the weekly timeframe, signalling that momentum is still positive in the near term. However, the monthly MACD has shifted to mildly bearish, reflecting a longer-term cooling in momentum. This divergence suggests that while short-term traders may find opportunities, longer-term investors should be cautious and monitor for confirmation of trend direction.
RSI Indicates Neutral Momentum
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This lack of directional bias implies that the stock is neither overbought nor oversold, reinforcing the sideways trend narrative. Investors should watch for any RSI breakouts above 70 or below 30 to identify potential momentum shifts.
Bollinger Bands Reflect Mild Bullishness
Bollinger Bands on the weekly chart remain bullish, indicating that price volatility is contained within an upward channel. The monthly Bollinger Bands also show mild bullishness, suggesting that despite recent consolidation, the stock retains some upward potential. This technical setup often precedes a breakout, but confirmation is required before committing to a directional trade.
Moving Averages and KST: Mixed Signals
Daily moving averages have turned mildly bearish, with the stock price currently trading just below key averages, signalling short-term weakness. Conversely, the Know Sure Thing (KST) indicator is mildly bullish on the weekly chart and bullish on the monthly chart, highlighting underlying strength in momentum over longer periods. This contrast between short- and long-term indicators suggests a complex technical environment where timing is critical.
Volume and Dow Theory Insights
On-Balance Volume (OBV) is mildly bullish on the weekly timeframe, indicating that buying pressure is still present despite price consolidation. However, monthly OBV shows no clear trend, reflecting uncertainty among longer-term investors. Dow Theory assessments add to this complexity, with a mildly bearish weekly outlook and no discernible trend on the monthly scale, underscoring the sideways movement in price action.
Price and Market Context
Hexaware Technologies Ltd closed at ₹759.80, down 0.63% from the previous close of ₹764.60 on 2 Jan 2026. The stock’s 52-week high stands at ₹900.15, while the low is ₹592.95, placing the current price closer to the upper half of its annual range. Today’s intraday high was ₹765.10 and low ₹753.25, reflecting moderate volatility within a narrow band.
Comparative Returns Against Sensex
Examining Hexaware’s returns relative to the Sensex reveals a mixed performance. Over the past week, the stock gained 1.43%, outperforming the Sensex’s decline of 0.26%. The one-month return of 3.1% also surpasses the Sensex’s negative 0.53%. However, year-to-date, Hexaware has declined by 0.63%, slightly underperforming the Sensex’s marginal fall of 0.04%. Longer-term returns show the Sensex outperforming Hexaware, with 5-year returns at 77.96% versus 61.4% for Hexaware, and 10-year returns of 225.63% compared to 213.19%.
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Mojo Score and Rating Update
MarketsMOJO assigns Hexaware Technologies a Mojo Score of 62.0, reflecting a Hold rating. This represents a downgrade from the previous Buy grade as of 1 Jan 2026. The Market Cap Grade remains at 2, indicating a mid-cap classification. The downgrade aligns with the technical shift from mildly bullish to sideways, signalling that investors should exercise caution and await clearer directional cues before increasing exposure.
Sector and Industry Positioning
Operating within the Computers - Software & Consulting sector, Hexaware faces competitive pressures and evolving market dynamics. The sector has seen mixed technical trends, with some peers exhibiting stronger momentum. Hexaware’s sideways technical stance may reflect broader sector consolidation as investors digest recent earnings and macroeconomic factors.
Implications for Investors
The current technical landscape suggests that Hexaware Technologies is in a consolidation phase, with short-term bearish signals tempered by longer-term bullish momentum indicators. Investors should monitor key technical levels, including the 52-week high of ₹900.15 and support near ₹592.95, for signs of breakout or breakdown. The neutral RSI and mixed MACD readings imply that volatility could increase once a directional bias emerges.
Outlook and Strategic Considerations
Given the sideways trend and technical indicator divergence, a cautious approach is warranted. Traders may consider waiting for confirmation of trend direction through sustained moves above daily moving averages or a monthly MACD reversal. Long-term investors should weigh the recent downgrade and relative underperformance against the Sensex before adjusting portfolio allocations.
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Summary
Hexaware Technologies Ltd’s technical parameters have shifted to a more cautious stance, with a sideways trend replacing prior mild bullishness. Mixed signals from MACD, RSI, moving averages, and volume indicators suggest a period of consolidation. While short-term momentum remains positive on some fronts, longer-term indicators counsel prudence. The downgrade to a Hold rating by MarketsMOJO reflects this nuanced outlook. Investors should closely monitor technical developments and sector trends before making significant moves.
Key Technical Levels to Watch
Support near ₹753 and the 52-week low of ₹592.95 will be critical to maintain the current range. Resistance at the 52-week high of ₹900.15 and daily moving averages will test the stock’s ability to resume an uptrend. Breakouts or breakdowns beyond these levels will provide clearer directional signals for traders and investors alike.
Final Thoughts
In a market environment where technical momentum is shifting, Hexaware Technologies Ltd exemplifies the challenges mid-cap software stocks face amid sector rotation and macroeconomic uncertainties. The current sideways trend offers both risks and opportunities, making disciplined analysis and risk management essential for market participants.
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