Recent Price Movement and Market Context
The stock closed at ₹2,818.40 on 21 Jan 2026, down 2.32% from the previous close of ₹2,885.20. Intraday volatility was evident, with a high of ₹2,876.75 and a low of ₹2,803.90. This decline slightly underperformed the broader Sensex, which fell 1.73% over the past week, while Mphasis itself recorded a 1.89% weekly decline. Over the one-month horizon, Mphasis dropped 2.53%, outperforming the Sensex’s 3.24% fall, signalling relative resilience amid broader market weakness.
Year-to-date, Mphasis has gained 0.99%, contrasting with the Sensex’s 3.57% decline, highlighting the stock’s defensive qualities. Over longer periods, the stock has delivered robust returns, with a 3-year gain of 39.14% versus the Sensex’s 35.56%, and a remarkable 10-year return of 531.08%, more than doubling the benchmark’s 241.54%.
Technical Trend Evolution: From Bullish to Mildly Bullish
Technical analysis reveals a subtle shift in momentum. The overall trend has transitioned from a clear bullish stance to a mildly bullish one, indicating some loss of upward momentum but not a reversal to bearish territory. This nuanced change is reflected in the mixed signals from key technical indicators.
MACD Analysis
The Moving Average Convergence Divergence (MACD) indicator presents a dichotomy: the weekly MACD is mildly bearish, suggesting short-term momentum is weakening, while the monthly MACD remains bullish, supporting a longer-term positive trend. This divergence implies that while short-term traders may face headwinds, the broader trend remains intact.
RSI and Bollinger Bands
The Relative Strength Index (RSI) shows no definitive signal on both weekly and monthly charts, hovering in neutral territory. This suggests the stock is neither overbought nor oversold, providing no immediate impetus for a sharp directional move. Meanwhile, Bollinger Bands indicate sideways movement on the weekly timeframe, reflecting consolidation, but maintain a bullish posture monthly, signalling potential for upward breakout in the medium term.
Moving Averages and KST Indicator
Daily moving averages are mildly bullish, with the stock price currently trading near its short-term averages, indicating tentative support. The Know Sure Thing (KST) indicator is bullish on the weekly chart but mildly bearish monthly, reinforcing the theme of short-term strength amid longer-term caution.
Volume and Dow Theory Signals
On-Balance Volume (OBV) is mildly bullish weekly but mildly bearish monthly, suggesting that volume trends are not decisively supporting the price action. Dow Theory analysis shows no clear trend weekly but a mildly bullish stance monthly, consistent with other indicators pointing to a cautious but positive outlook.
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Mojo Score Upgrade and Market Capitalisation Insights
Mphasis’s MarketsMOJO score has improved to 72.0, upgrading its grade from Hold to Buy as of 19 Jan 2026. This reflects enhanced confidence in the stock’s prospects based on a combination of fundamental and technical factors. The company holds a Market Cap Grade of 2, indicating a mid-cap status with moderate market capitalisation relative to peers in the Computers - Software & Consulting sector.
Comparative Performance and Sector Context
Within its sector, Mphasis’s technical and fundamental profile remains competitive. The stock’s ability to outperform the Sensex over medium and long-term periods underscores its resilience and growth potential. However, the recent mild bearish signals on weekly MACD and OBV caution investors to monitor short-term price action closely.
Investor Implications and Outlook
For investors, the mildly bullish technical trend suggests a watchful approach. The absence of strong RSI signals and the sideways Bollinger Bands on weekly charts imply consolidation, which could precede either a breakout or a deeper correction. The bullish monthly MACD and Dow Theory signals provide a foundation for optimism, but the mixed short-term indicators warrant prudence.
Given the stock’s strong historical returns and recent upgrade in Mojo Grade, investors with a medium to long-term horizon may consider accumulating on dips, while short-term traders should await clearer confirmation of trend direction.
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Summary of Technical Indicators
To summarise, Mphasis’s technical landscape is characterised by:
- Weekly MACD: Mildly Bearish
- Monthly MACD: Bullish
- RSI (Weekly & Monthly): Neutral, no clear signal
- Bollinger Bands: Sideways weekly, bullish monthly
- Moving Averages (Daily): Mildly Bullish
- KST Indicator: Bullish weekly, mildly bearish monthly
- Dow Theory: No trend weekly, mildly bullish monthly
- OBV: Mildly bullish weekly, mildly bearish monthly
These mixed signals reflect a stock in a phase of consolidation with underlying strength, suggesting that investors should balance optimism with caution in the near term.
Long-Term Performance Remains Robust
Despite recent short-term volatility, Mphasis’s long-term performance remains impressive. The stock’s 5-year return of 71.07% and 10-year return exceeding 531% significantly outpace the Sensex benchmarks of 65.05% and 241.54%, respectively. This track record underpins the company’s strong fundamentals and growth trajectory within the software and consulting industry.
Conclusion
Mphasis Ltd. currently exhibits a technical profile that is mildly bullish but tempered by short-term bearish signals. The upgrade in Mojo Grade to Buy reflects improved confidence in the stock’s prospects, supported by solid long-term returns and sector positioning. Investors should monitor key technical indicators closely, particularly the MACD and moving averages, to gauge momentum shifts. While short-term caution is warranted, the medium to long-term outlook remains constructive for this mid-cap software and consulting firm.
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