Is Tejas Networks technically bullish or bearish?

Current Technical Landscape

As of 25 Nov 2025, the technical trend for Tejas Networks shifted from outright bearish to mildly bearish, signalling a tentative easing of downward momentum but not a definitive reversal. This nuanced change highlights the stock’s struggle to establish a clear directional bias amid volatile market conditions.

Examining key technical indicators reveals a mixed picture. The Moving Average Convergence Divergence (MACD) remains bearish on both weekly and monthly charts, indicating persistent selling pressure and a lack of upward momentum. Similarly, Bollinger Bands on weekly and monthly timeframes suggest the stock is trading near the lower band, reinforcing the bearish sentiment and potential volatility.

Conversely, the Relative Strength Index (RSI) presents a more optimistic view, showing bullish signals on both weekly and monthly scales. This divergence between momentum oscillators and trend-following indicators suggests that while the stock has been oversold, there may be room for a short-term bounce or consolidation.

Short-Term vs Long-Term Technical Signals

Daily moving averages continue to reflect bearishness, underscoring the stock’s recent downward trajectory. However, the Know Sure Thing (KST) indicator offers a split verdict: mildly bullish on the weekly chart but bearish on the monthly. This indicates some short-term positive momentum that has yet to translate into a sustained long-term uptrend.

Dow Theory analysis aligns with this cautious stance, showing mildly bearish signals on both weekly and monthly timeframes. This theory, which focuses on confirming trends through market averages, suggests that the broader market sentiment for Tejas Networks remains subdued.

On the volume front, the On-Balance Volume (OBV) indicator is mildly bullish on weekly and monthly charts, hinting at accumulation by investors despite price weakness. This could be an early sign of interest returning to the stock, although it is not yet strong enough to confirm a bullish breakout.

Price Action and Volatility

Tejas Networks closed at ₹476.15, down from the previous close of ₹484.65, with intraday prices ranging between ₹474.50 and ₹488.30. The stock is currently trading near its 52-week low of ₹474.50, a stark contrast to its 52-week high of ₹1,403.15. This wide price range over the year underscores significant volatility and a steep decline from peak levels.

The proximity to the 52-week low may attract value-oriented investors looking for potential rebounds, but it also signals caution given the stock’s inability to sustain higher price levels over the past year.

Comparative Performance and Market Context

Tejas Networks’ recent returns have been disappointing when benchmarked against the broader market. Over the past week, the stock declined by 7.4%, significantly underperforming the Sensex, which was nearly flat with a marginal 0.1% gain. The one-month performance shows an 11.6% drop for the stock, while the Sensex gained 0.45% in the same period.

Year-to-date and one-year returns paint an even bleaker picture, with Tejas Networks down approximately 60% and 63% respectively, compared to Sensex gains of 8.3% and 5.6%. Even over a three-year horizon, the stock has declined by 25%, while the Sensex surged nearly 36%. This stark underperformance highlights the challenges faced by the company and the telecom equipment sector amid competitive pressures and market headwinds.

However, the five-year return of 371% for Tejas Networks is noteworthy, far outpacing the Sensex’s 93% gain over the same period. This suggests that despite recent setbacks, the stock has delivered substantial long-term value to investors, reflecting periods of strong growth and market optimism.

Technical Outlook: Bullish or Bearish?

Overall, the technical evidence for Tejas Networks leans towards a cautious bearish stance with some mild bullish signals emerging in the short term. The dominant bearish MACD, Bollinger Bands, and moving averages indicate that the stock remains under selling pressure. Meanwhile, the bullish RSI and mildly positive OBV suggest that oversold conditions and volume support could provide a base for a potential recovery.

Investors should be wary of the stock’s proximity to its 52-week low and the absence of a clear long-term uptrend confirmation. The mixed signals from KST and Dow Theory further reinforce the need for prudence, as the stock may experience volatility and sideways movement before any sustained rally.

In summary, Tejas Networks is not currently exhibiting a strong technical bullish trend. Instead, it is in a phase of mild bearishness with intermittent signs of short-term strength. This nuanced technical profile calls for careful monitoring of key support and resistance levels, alongside broader market developments in the telecom equipment sector.

Investor Considerations

For investors considering Tejas Networks, the current technical backdrop suggests a need for caution. The stock’s recent underperformance relative to the Sensex and its technical indicators imply that it is not yet poised for a robust recovery. Those with a higher risk appetite might view the oversold RSI and mild volume accumulation as potential entry points, but should be prepared for continued volatility.

Long-term investors may want to focus on fundamental developments, such as earnings growth, order book expansion, and sectoral tailwinds, before committing fresh capital. Technical signals alone do not currently support a confident bullish stance, and the stock’s history of sharp declines warrants a disciplined approach to risk management.

Monitoring upcoming quarterly results, management commentary, and broader telecom industry trends will be crucial in assessing whether the mild bearish trend can evolve into a more constructive phase.

Conclusion

Tejas Networks presently exhibits a technically bearish to mildly bearish profile, with some short-term bullish indicators offering tentative hope for a turnaround. The stock’s proximity to its 52-week low, combined with negative momentum indicators, suggests that investors should remain cautious. While there are signs of potential accumulation and oversold conditions, these have yet to translate into a confirmed bullish trend.

Given the mixed technical signals and the stock’s significant underperformance relative to the broader market, a prudent approach would be to await clearer confirmation of trend reversal before increasing exposure. For those seeking alternatives within the telecom equipment sector, comparative analysis tools may help identify stocks with stronger technical and fundamental prospects.

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