Mphasis Ltd. Technical Momentum Shifts Signal Bullish Outlook Amid Mixed Indicators

Technical Trend Evolution and Price Momentum

The technical trend for Mphasis has transitioned from mildly bullish to bullish, signalling an improvement in price momentum. The stock closed at ₹2,835.00, up from the previous close of ₹2,809.85, with intraday highs touching ₹2,859.00 and lows at ₹2,807.50. This upward movement is encouraging, especially as the stock approaches its 52-week high of ₹3,049.00, while comfortably above its 52-week low of ₹2,025.05.

Over the past week, Mphasis outperformed the Sensex, delivering a 1.59% return compared to the benchmark’s 0.53%. Year-to-date, the stock has gained 1.59%, contrasting with the Sensex’s decline of 3.37%. However, over the one-year horizon, Mphasis has lagged, posting a -2.17% return against the Sensex’s robust 8.49% gain. Longer-term performance remains strong, with a five-year return of 82.18% surpassing the Sensex’s 75.67%, and a remarkable ten-year return of 527.63% more than doubling the benchmark’s 236.52%.

Mixed Signals from Key Technical Indicators

Examining the Moving Average Convergence Divergence (MACD), the weekly chart remains mildly bearish, indicating some short-term selling pressure or consolidation. Conversely, the monthly MACD is bullish, suggesting that the longer-term momentum remains positive. This divergence between weekly and monthly MACD readings highlights the stock’s current phase of technical transition.

The Relative Strength Index (RSI) on both weekly and monthly timeframes shows no definitive signal, hovering in neutral zones. This implies that the stock is neither overbought nor oversold, leaving room for directional movement based on broader market catalysts or company-specific developments.

Bollinger Bands reinforce the bullish narrative, with both weekly and monthly indicators signalling upward momentum. The stock price is trading near the upper band, which often suggests strength but also warrants caution for potential short-term pullbacks.

Moving Averages and Momentum Oscillators

Daily moving averages for Mphasis are firmly bullish, with the stock price trading above key averages such as the 50-day and 200-day moving averages. This alignment typically signals sustained upward momentum and investor confidence in the near term.

The Know Sure Thing (KST) oscillator presents a mixed picture: bullish on the weekly timeframe but mildly bearish on the monthly. This suggests that while short-term momentum is positive, longer-term momentum may be facing some headwinds or consolidation phases.

Dow Theory analysis reveals no clear trend on the weekly chart, but a mildly bullish stance on the monthly timeframe. This further underscores the stock’s current technical ambiguity, with potential for either breakout or correction depending on market conditions.

On-Balance Volume (OBV) indicators align with the Dow Theory, showing no trend weekly but mild bullishness monthly. This indicates that volume flows are cautiously supporting the price gains over the longer term, though short-term volume patterns remain inconclusive.

Mojo Score and Market Capitalisation Insights

Mphasis holds a Mojo Score of 67.0, reflecting a Hold rating, a downgrade from its previous Buy grade as of 19 Jan 2026. The Market Cap Grade stands at 2, indicating a mid-cap status with moderate market capitalisation strength. This rating adjustment reflects the recent technical shifts and the mixed signals from momentum indicators, suggesting investors should exercise measured caution.

Given the stock’s recent performance and technical signals, investors may consider monitoring key support levels near ₹2,800 and resistance around ₹2,900 to ₹3,000. A sustained move above the 52-week high could reignite bullish sentiment, while a break below support might signal deeper consolidation.

Contextualising Mphasis’ Performance Against Sector and Market Benchmarks

Within the Computers - Software & Consulting sector, Mphasis’ technical and price momentum shifts are reflective of broader market volatility and sector rotation trends. While the sector has faced headwinds in recent months, Mphasis’ relative outperformance on a weekly and year-to-date basis highlights its resilience.

However, the one-year underperformance relative to the Sensex suggests that the stock has not fully capitalised on the broader market rally, possibly due to sector-specific challenges or company-level factors. Investors should weigh these dynamics alongside the technical signals when considering portfolio allocation.

Long-term investors may find comfort in Mphasis’ robust five- and ten-year returns, which significantly outpace the Sensex, underscoring the company’s sustained growth trajectory and market leadership in software and consulting services.

Outlook and Investor Considerations

In summary, Mphasis Ltd. presents a technically complex picture with a blend of bullish and bearish signals across multiple indicators and timeframes. The recent upgrade in technical trend to bullish is tempered by mixed momentum oscillators and a Hold Mojo Grade, reflecting cautious optimism.

Investors should closely monitor key technical levels and volume patterns, alongside fundamental developments and sector trends. The stock’s ability to break above its 52-week high and maintain bullish moving average alignments will be critical for confirming a sustained uptrend.

Conversely, failure to hold support levels or deterioration in momentum indicators could signal a period of consolidation or correction, warranting a more defensive stance.

Summary of Key Technical Indicators for Mphasis Ltd.

• MACD: Weekly mildly bearish; Monthly bullish


• RSI: Neutral on weekly and monthly


• Bollinger Bands: Bullish on both weekly and monthly


• Moving Averages: Daily bullish, price above 50-day and 200-day averages


• KST: Weekly bullish; Monthly mildly bearish


• Dow Theory: Weekly no trend; Monthly mildly bullish


• OBV: Weekly no trend; Monthly mildly bullish

These mixed signals suggest that while the stock is positioned for potential gains, investors should remain vigilant and consider broader market conditions before making significant commitments.

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