Mphasis Ltd. Technical Momentum Shifts Signal Bullish Outlook Amid Market Volatility

Technical Indicators Signal Strengthening Momentum

The recent technical parameter adjustments for Mphasis Ltd. reveal a compelling picture. The Moving Average Convergence Divergence (MACD) indicator remains bullish on both weekly and monthly charts, signalling sustained upward momentum. This is complemented by the Bollinger Bands, which also show bullish trends on weekly and monthly timeframes, indicating price volatility is favouring upward movement.

On the daily front, moving averages have turned bullish, reinforcing the short-term positive trend. The Relative Strength Index (RSI), however, remains neutral with no clear signal on weekly and monthly charts, suggesting that while momentum is positive, the stock is not yet overbought and may have room to run further.

Other momentum indicators present a mixed but generally positive outlook. The Know Sure Thing (KST) indicator is bullish on a weekly basis but mildly bearish monthly, indicating some caution in the longer term. Dow Theory assessments show a mildly bearish weekly stance but a mildly bullish monthly trend, reflecting a nuanced market sentiment that favours a cautious but optimistic approach.

On-Balance Volume (OBV) is mildly bearish weekly and shows no clear trend monthly, suggesting that volume support for the price movement is moderate and investors should watch for volume confirmation in coming sessions.

Price Action and Market Context

Mphasis closed at ₹2,834.00, up 0.39% from the previous close of ₹2,822.95, with intraday highs reaching ₹2,851.80 and lows at ₹2,794.20. The stock remains below its 52-week high of ₹3,078.50 but comfortably above its 52-week low of ₹2,025.05, indicating a solid recovery and resilience amid broader market fluctuations.

Comparing returns against the Sensex reveals Mphasis has outperformed in several key periods. Over the past week, the stock gained 0.98% while the Sensex declined by 2.55%. Year-to-date, Mphasis has risen 1.55% compared to a 1.93% fall in the Sensex. Over longer horizons, the stock has delivered impressive returns: 41.78% over three years versus 37.58% for the Sensex, 73.18% over five years compared to 71.32%, and a remarkable 505.56% over ten years against the Sensex’s 235.19%.

Mojo Score Upgrade Reflects Improved Market Sentiment

Reflecting these technical improvements, MarketsMOJO has upgraded Mphasis Ltd.’s Mojo Grade from Hold to Buy as of 07 Jan 2026, with a current Mojo Score of 72.0. This upgrade signals enhanced confidence in the stock’s near-term prospects, supported by a Market Cap Grade of 2, indicating a mid-sized market capitalisation with growth potential.

The upgrade is consistent with the technical trend shift from mildly bullish to bullish, highlighting a convergence of fundamental and technical factors that favour accumulation. The day change of 0.39% may appear modest, but it is significant given the broader market volatility and the stock’s relative outperformance against benchmark indices.

Sector and Industry Positioning

Mphasis operates within the Computers - Software & Consulting sector, a space characterised by rapid innovation and evolving client demands. The company’s technical momentum improvement aligns with sector trends where technology firms are benefiting from digital transformation initiatives and increased IT spending globally.

Investors should note that while the technical indicators are largely positive, some caution is warranted due to mixed signals from KST and Dow Theory on monthly and weekly timeframes. These suggest that while the stock is positioned for growth, intermittent pullbacks or consolidation phases may occur.

Valuation and Risk Considerations

At the current price of ₹2,834.00, Mphasis trades below its 52-week high but well above its low, indicating a balanced valuation range. The absence of RSI overbought signals suggests the stock is not stretched, providing a reasonable entry point for investors seeking exposure to the software consulting space.

However, volume indicators such as OBV showing mild bearishness on a weekly basis imply that investors should monitor trading volumes closely to confirm the sustainability of the bullish momentum. A sustained increase in volume alongside price appreciation would strengthen the bullish case.

Outlook and Investor Takeaways

In summary, Mphasis Ltd. is exhibiting a clear shift towards bullish technical momentum, supported by strong MACD and Bollinger Bands signals, alongside daily moving averages confirming upward trends. The neutral RSI readings suggest room for further appreciation without immediate risk of overextension.

While some indicators such as KST and Dow Theory present mixed signals, the overall technical landscape favours a positive outlook. The stock’s consistent outperformance relative to the Sensex over multiple timeframes further reinforces its appeal as a growth-oriented investment within the technology sector.

Investors should remain vigilant for volume confirmation and monitor broader market conditions, but the current technical upgrade and Mojo Grade improvement provide a compelling case for considering Mphasis Ltd. as part of a diversified portfolio focused on software and consulting firms with strong growth trajectories.

Summary of Key Technical Metrics:

• MACD: Weekly and Monthly – Bullish


• RSI: Weekly and Monthly – No Signal (Neutral)


• Bollinger Bands: Weekly and Monthly – Bullish


• Moving Averages: Daily – Bullish


• KST: Weekly – Bullish; Monthly – Mildly Bearish


• Dow Theory: Weekly – Mildly Bearish; Monthly – Mildly Bullish


• OBV: Weekly – Mildly Bearish; Monthly – No Trend

With a current price near ₹2,834 and a 52-week high of ₹3,078.50, Mphasis remains well-positioned for potential upside, supported by a recent Mojo Grade upgrade to Buy and a solid technical foundation.

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