Mphasis Ltd. Technical Momentum Shifts Amid Mixed Market Signals

Price Movement and Market Context

On 9 Jan 2026, Mphasis closed at ₹2,815.05, down 2.07% from the previous close of ₹2,874.45. The intraday range was between ₹2,801.95 and ₹2,889.30, reflecting some volatility but remaining above the 52-week low of ₹2,025.05. The stock is currently trading below its 52-week high of ₹3,078.50, indicating some resistance at higher levels.

Comparatively, Mphasis has outperformed the Sensex over longer horizons. While the Sensex returned 7.72% over the past year, Mphasis declined by 3.81%. However, over three and five years, Mphasis has delivered returns of 42.44% and 72.02% respectively, closely tracking or slightly outperforming the Sensex’s 40.53% and 72.56%. Remarkably, over a decade, Mphasis has surged 501.51%, more than doubling the Sensex’s 237.61% gain, underscoring its strong growth trajectory.

Technical Indicator Analysis

The technical landscape for Mphasis reveals a complex but generally positive picture. The Moving Average Convergence Divergence (MACD) indicator remains bullish on both weekly and monthly charts, signalling sustained upward momentum in the medium to long term. This suggests that despite recent price softness, the underlying trend retains strength.

Relative Strength Index (RSI) readings on weekly and monthly timeframes currently show no clear signal, hovering in neutral zones. This indicates that the stock is neither overbought nor oversold, providing room for potential directional moves without immediate risk of reversal due to extreme conditions.

Moving averages on the daily chart have shifted to a mildly bullish stance, reflecting a subtle improvement in short-term momentum. This mild bullishness is consistent with the broader technical trend change from bullish to mildly bullish, implying that while the stock is not in a strong uptrend, it is showing signs of stabilisation and potential recovery.

Additional Technical Signals

Bollinger Bands on the weekly chart are moving sideways, indicating consolidation and reduced volatility in the near term. However, the monthly Bollinger Bands remain bullish, suggesting that the longer-term volatility pattern favours upward price movement.

The Know Sure Thing (KST) indicator presents a mixed view: bullish on the weekly timeframe but mildly bearish monthly. This divergence points to short-term strength that may be tempered by longer-term caution, highlighting the importance of monitoring momentum shifts closely.

Dow Theory assessments also reflect this duality, with a mildly bearish weekly outlook contrasting with a mildly bullish monthly perspective. This suggests that while short-term price action may face headwinds, the broader trend remains constructive.

On-Balance Volume (OBV) readings are mildly bearish weekly and show no clear trend monthly, indicating that volume flows are not strongly supporting recent price moves. This volume pattern warrants attention as it may influence the sustainability of any price advances.

Mojo Score Upgrade and Market Capitalisation

MarketsMOJO has upgraded Mphasis’s Mojo Grade from Hold to Buy as of 7 Jan 2026, reflecting improved technical and fundamental outlooks. The current Mojo Score stands at 72.0, signalling a favourable investment proposition. Despite this upgrade, the Market Cap Grade remains at 2, indicating a mid-cap classification with moderate market capitalisation relative to peers.

This upgrade aligns with the technical trend shift to mildly bullish and the positive signals from MACD and moving averages, reinforcing the stock’s appeal to investors seeking growth in the software and consulting sector.

Sector and Industry Positioning

Mphasis operates within the Computers - Software & Consulting industry, a sector characterised by rapid innovation and evolving client demands. The company’s technical resilience amid broader market fluctuations suggests it is well-positioned to capitalise on sector growth trends. However, investors should remain mindful of sector-specific risks such as technology disruptions and competitive pressures.

Risk Considerations and Price Momentum

The recent 2.07% decline in price and the mildly bearish volume indicators on the weekly OBV chart highlight some near-term risks. The sideways Bollinger Bands on the weekly timeframe also suggest a period of consolidation, which could precede either a breakout or further correction. Investors should watch for confirmation from RSI and KST indicators to gauge the strength of any emerging trend.

Moreover, the divergence between weekly and monthly technical signals underscores the importance of a balanced approach, combining short-term caution with long-term optimism.

Long-Term Investment Perspective

For investors with a longer horizon, Mphasis’s decade-long return of 501.51% far outpaces the Sensex’s 237.61%, demonstrating the company’s capacity for sustained growth. This performance, combined with the recent technical upgrade and sector tailwinds, supports a constructive view on the stock’s medium to long-term prospects.

However, the mixed signals in shorter timeframes advise a measured approach, with attention to technical confirmations before committing to sizeable positions.

Conclusion

Mphasis Ltd. currently exhibits a mildly bullish technical profile, supported by strong MACD momentum and improving moving averages, despite some short-term volatility and mixed volume signals. The upgrade in Mojo Grade to Buy reflects growing confidence in the stock’s potential, while its long-term returns remain impressive relative to the broader market.

Investors should monitor key technical indicators such as RSI and KST for clearer directional cues, while considering sector dynamics and valuation metrics. Overall, Mphasis presents a compelling case for inclusion in a diversified portfolio focused on technology and software consulting, balancing growth potential with prudent risk management.

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