Technical Momentum and Indicator Analysis
The recent technical parameter changes for Mphasis Ltd. reveal a nuanced picture. The Moving Average Convergence Divergence (MACD) indicator, a widely followed momentum oscillator, has turned mildly bearish on both weekly and monthly charts. This suggests that the stock’s upward momentum is weakening, with the MACD line likely crossing below the signal line, a classic sell signal for traders.
Complementing this, the Relative Strength Index (RSI) remains neutral with no clear signal on weekly and monthly timeframes, indicating that the stock is neither overbought nor oversold at present. This neutrality in RSI suggests that while momentum is fading, there is no immediate extreme condition prompting a sharp reversal.
Bollinger Bands, which measure volatility and price levels relative to recent averages, have turned bearish on both weekly and monthly charts. The stock price has likely breached or is trading near the lower band, signalling increased selling pressure and potential continuation of the downward trend.
Daily moving averages, however, still show a mildly bullish trend, indicating that short-term price action retains some upward bias. This divergence between daily and longer-term indicators points to a transitional phase where short-term traders may find opportunities, but longer-term investors should exercise caution.
Additional Technical Signals and Trend Assessments
The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, aligns with the bearish outlook on weekly and monthly charts, reinforcing the view of weakening momentum. Dow Theory analysis shows no clear trend on the weekly scale but a mildly bearish trend on the monthly scale, further confirming the cautious stance.
On-Balance Volume (OBV), a volume-based indicator that helps confirm price trends, is mildly bearish on both weekly and monthly charts. This suggests that volume is not supporting recent price gains, and selling pressure may be increasing.
Price Performance and Market Context
Mphasis’s current price of ₹2,689.55 is significantly below its 52-week high of ₹3,035.15 but comfortably above the 52-week low of ₹2,025.05. The intraday range on 5 Feb 2026 was ₹2,615.70 to ₹2,779.95, reflecting heightened volatility amid the technical shifts.
Comparing Mphasis’s returns with the broader Sensex index reveals underperformance in recent periods. Over the past week, Mphasis declined by 5.09%, while Sensex gained 1.79%. Over one month, the stock fell 4.17% against a 2.27% Sensex decline. Year-to-date, Mphasis is down 3.63%, lagging the Sensex’s 1.65% loss. Over the one-year horizon, Mphasis’s return of -3.98% contrasts sharply with Sensex’s 6.66% gain.
Longer-term returns, however, remain robust. Over three years, Mphasis has delivered 28.71% growth compared to Sensex’s 37.76%, and over five years, it has outpaced the Sensex with a 69.19% gain versus 65.60%. Remarkably, the 10-year return stands at 496.68%, nearly doubling the Sensex’s 244.38%, underscoring the company’s strong historical performance despite recent technical setbacks.
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Mojo Score and Market Capitalisation Insights
Mphasis currently holds a Mojo Score of 44.0, which places it in the 'Sell' category, a downgrade from its previous 'Hold' rating as of 1 Feb 2026. This shift reflects the deteriorating technical and momentum indicators, signalling increased risk for investors. The company’s market cap grade is 2, indicating a mid-tier capitalisation relative to its sector peers.
The downgrade in Mojo Grade is significant as it encapsulates both fundamental and technical assessments, suggesting that investors should reassess their positions in light of the emerging bearish signals.
Sector and Industry Positioning
Operating within the Computers - Software & Consulting sector, Mphasis faces competitive pressures and evolving market dynamics. The sector itself has shown mixed technical trends, with some peers maintaining stronger momentum. Mphasis’s recent technical deterioration may reflect sector-wide challenges or company-specific factors such as earnings outlook or client concentration risks.
Investors should monitor sector indices and peer performance closely to gauge whether Mphasis’s technical weakness is isolated or part of a broader trend affecting software and consulting stocks.
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Investor Takeaways and Outlook
The technical shift from mildly bullish to mildly bearish for Mphasis Ltd. signals a cautious environment for investors. The convergence of bearish MACD, Bollinger Bands, KST, and OBV indicators on weekly and monthly charts suggests that the stock may face further downward pressure in the near term.
However, the absence of extreme RSI signals and the mildly bullish daily moving averages indicate that short-term rebounds or consolidation phases are possible. Investors with a longer horizon should weigh these technical signals against the company’s strong historical returns and fundamental profile.
Given the recent Mojo Grade downgrade to 'Sell' and the stock’s underperformance relative to the Sensex in recent weeks, a prudent approach would be to monitor for confirmation of trend direction before initiating new positions. Existing shareholders may consider tightening stop-loss levels or exploring alternative investments within the sector.
Overall, Mphasis Ltd. remains a fundamentally sound company with a compelling long-term track record, but the current technical landscape advises caution and close monitoring of momentum indicators.
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