Mphasis Ltd. Technical Momentum Shifts to Bullish Amid Mixed Market Returns

Technical Trend Evolution and Indicator Analysis

The recent technical parameter update for Mphasis Ltd. reveals a significant improvement in the stock’s momentum. The weekly and monthly Moving Average Convergence Divergence (MACD) indicators both remain bullish, signalling sustained upward momentum. This is complemented by bullish readings on the Bollinger Bands across weekly and monthly timeframes, indicating that price volatility is supporting an upward price trajectory rather than signalling overextension.

On the daily chart, moving averages have turned bullish, reinforcing the short-term positive momentum. The stock’s current price of ₹2,871.00, up from the previous close of ₹2,831.65, reflects a 1.39% gain on the day, with intraday highs touching ₹2,877.95 and lows at ₹2,815.05. This price action suggests that buyers are actively supporting the stock near its current levels.

Relative Strength Index (RSI) readings, however, remain neutral on both weekly and monthly charts, indicating no immediate overbought or oversold conditions. This neutrality suggests that the stock has room to appreciate further without triggering typical RSI-based sell signals.

Mixed Signals from Other Technical Tools

While the KST (Know Sure Thing) indicator is bullish on a weekly basis, it shows a mildly bearish tone on the monthly scale, signalling some caution for longer-term investors. Dow Theory assessments reveal no clear trend on the weekly chart but a mildly bullish stance monthly, which aligns with the overall positive momentum but advises vigilance.

On-Balance Volume (OBV) indicators show no definitive trend on either weekly or monthly timeframes, suggesting that volume flow has not decisively confirmed the price movements yet. This could imply that while price momentum is improving, volume participation remains moderate, a factor to watch for confirmation of sustained moves.

Comparative Performance Against Sensex

From a returns perspective, Mphasis has outperformed the benchmark Sensex over several key periods. Over the past week, the stock gained 1.93%, while the Sensex declined by 1.69%. Year-to-date, Mphasis has risen 2.88% compared to the Sensex’s 1.87% decline. Over three years, the stock has delivered a robust 41.04% return, slightly ahead of the Sensex’s 38.78%. The five-year and ten-year returns are even more impressive, with Mphasis posting gains of 73.83% and 541.13% respectively, significantly outpacing the Sensex’s 68.97% and 236.47% returns.

These figures underscore Mphasis’s strong long-term growth trajectory and resilience relative to the broader market, reinforcing the positive technical outlook.

Mojo Score and Rating Revision

MarketsMOJO has revised Mphasis’s Mojo Grade from a Buy to a Hold as of 12 January 2026, reflecting a more cautious stance amid evolving technical signals. The current Mojo Score stands at 65.0, indicating moderate confidence in the stock’s near-term prospects. The Market Cap Grade remains low at 2, suggesting that while the company is sizeable, it may not yet command the scale of larger peers in the sector.

This downgrade from Buy to Hold is consistent with the mixed technical signals, particularly the mildly bearish monthly KST and neutral RSI, which temper enthusiasm despite the bullish MACD and moving averages.

Sector Context and Industry Positioning

Mphasis operates within the Computers - Software & Consulting sector, a space characterised by rapid innovation and competitive pressures. The sector has seen varied performance recently, with technology stocks facing headwinds from global macroeconomic uncertainties and shifting IT spending patterns. Against this backdrop, Mphasis’s technical improvement is noteworthy, signalling potential resilience and selective investor interest.

Investors should consider the broader sector dynamics alongside the company’s technical momentum, as sector-wide trends often influence individual stock trajectories.

Price Range and Volatility Considerations

The stock’s 52-week high stands at ₹3,078.50, while the 52-week low is ₹2,025.05, indicating a wide trading range and significant volatility over the past year. The current price of ₹2,871.00 places Mphasis closer to its upper range, suggesting that the recent bullish momentum has pushed the stock towards resistance levels. Traders should monitor price action near the 52-week high for potential breakout or reversal signals.

Volatility, as reflected in Bollinger Bands, remains supportive of the bullish trend, but investors should remain alert to any sudden shifts in volume or momentum that could signal a change in trend.

Investor Takeaway and Outlook

In summary, Mphasis Ltd. is exhibiting a technical momentum shift towards a bullish trend, supported by strong MACD and moving average signals. However, the neutral RSI and mixed readings from KST and Dow Theory suggest that investors should approach with measured optimism. The recent Mojo Grade downgrade to Hold reflects this balanced view.

Long-term investors may find comfort in the stock’s robust multi-year returns and relative outperformance against the Sensex, while short-term traders should watch for confirmation of volume support and potential resistance near the 52-week high.

Given the evolving technical landscape and sector dynamics, a cautious but attentive stance is advisable, with close monitoring of key indicators for any signs of trend reversal or acceleration.

Summary of Key Technical Indicators for Mphasis Ltd.

• MACD: Weekly and Monthly - Bullish


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


• Bollinger Bands: Weekly and Monthly - Bullish


• Moving Averages: Daily - Bullish


• KST: Weekly - Bullish; Monthly - Mildly Bearish


• Dow Theory: Weekly - No Trend; Monthly - Mildly Bullish


• OBV: Weekly and Monthly - No Trend

Performance Comparison with Sensex

• 1 Week: Mphasis +1.93%, Sensex -1.69%


• 1 Month: Mphasis -1.45%, Sensex -1.92%


• Year-to-Date: Mphasis +2.88%, Sensex -1.87%


• 1 Year: Mphasis +3.32%, Sensex +9.56%


• 3 Years: Mphasis +41.04%, Sensex +38.78%


• 5 Years: Mphasis +73.83%, Sensex +68.97%


• 10 Years: Mphasis +541.13%, Sensex +236.47%

Conclusion

Mphasis Ltd. stands at a technical inflection point with bullish momentum gaining traction, supported by key indicators and relative outperformance. While some caution is warranted due to mixed signals and sector volatility, the stock’s technical profile and long-term returns make it a noteworthy candidate for investors seeking exposure to the Computers - Software & Consulting sector.

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