Technical Momentum Shifts to Bearish Territory
The latest technical analysis reveals that Sasken Technologies Ltd’s momentum has shifted from mildly bearish to outright bearish. The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, is bearish on both weekly and monthly charts, signalling sustained downward pressure. The Relative Strength Index (RSI) on the weekly timeframe also confirms bearish momentum, while the monthly RSI remains neutral, indicating no immediate oversold or overbought conditions.
Bollinger Bands, which measure volatility and price levels relative to moving averages, have turned bearish on both weekly and monthly charts. This suggests that the stock is trading near the lower band, reflecting increased selling pressure and potential continuation of the downtrend. Daily moving averages further reinforce this negative outlook, with the stock price currently below key averages, indicating a lack of short-term buying interest.
Price Action and Volatility
On 24 Feb 2026, Sasken Technologies closed at ₹1,190.00, down 3.00% from the previous close of ₹1,226.80. The intraday range was between ₹1,190.00 and ₹1,226.75, highlighting increased volatility amid bearish sentiment. The stock is trading close to its 52-week low of ₹1,155.00, significantly below its 52-week high of ₹1,710.25, underscoring the extent of the recent decline.
This price weakness contrasts sharply with the broader market, as the Sensex has shown resilience with a 1-year return of 10.60%, while Sasken Technologies has declined by 29.73% over the same period. Year-to-date, the stock has fallen 21.38%, compared to a modest 2.26% decline in the Sensex, indicating underperformance relative to the benchmark.
Trend Indicators Confirm Bearish Outlook
The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures to identify trend shifts, is bearish on both weekly and monthly timeframes. This aligns with the Dow Theory assessment, which shows no clear trend on the weekly chart and only a mildly bullish signal on the monthly chart, suggesting that any positive momentum is weak and likely insufficient to reverse the prevailing downtrend.
On-Balance Volume (OBV), a volume-based indicator that tracks buying and selling pressure, shows no trend on the weekly chart but a bullish signal on the monthly chart. This divergence may indicate some accumulation by long-term investors, but it has yet to translate into a meaningful price recovery.
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Mojo Score and Market Capitalisation Insights
Sasken Technologies currently holds a Mojo Score of 41.0, categorised as a Sell rating, a downgrade from its previous Hold grade as of 28 Feb 2025. This reflects a deterioration in the company’s overall technical and fundamental outlook. The market capitalisation grade stands at 3, indicating a mid-tier valuation relative to peers in the Computers - Software & Consulting sector.
The downgrade in Mojo Grade is consistent with the technical indicators’ bearish signals and the stock’s underperformance against the Sensex. Investors should note that the company’s sector is highly competitive and sensitive to technology trends, which may be contributing to the cautious stance.
Comparative Returns Highlight Underperformance
Examining returns over various periods reveals Sasken Technologies’ relative weakness. Over one week, the stock declined by 1.94%, while the Sensex was flat with a 0.02% gain. Over one month, Sasken fell 4.14%, contrasting with the Sensex’s 2.15% rise. The year-to-date and one-year returns are particularly stark, with Sasken down 21.38% and 29.73% respectively, against Sensex gains of -2.26% and 10.60%.
Longer-term returns over three, five, and ten years show positive absolute gains for Sasken, at 31.83%, 37.29%, and 368.32% respectively, but these lag behind the Sensex’s corresponding returns of 39.74%, 67.42%, and 255.80%. This suggests that while the company has delivered strong long-term growth, recent performance has faltered significantly.
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Investor Implications and Outlook
The convergence of bearish signals across multiple technical indicators suggests that Sasken Technologies is currently in a downtrend with limited near-term upside. The stock’s proximity to its 52-week low and the negative momentum in MACD, RSI, Bollinger Bands, and moving averages indicate that investors should exercise caution.
While the monthly OBV’s bullish signal hints at some underlying accumulation, this has not yet translated into price strength. The Dow Theory’s mildly bullish monthly trend is insufficient to offset the dominant bearish weekly signals. Consequently, the risk-reward profile appears skewed towards further downside or consolidation at best.
Investors with a medium to long-term horizon may wish to monitor for signs of technical reversal, such as a sustained break above key moving averages or a positive MACD crossover. Until then, the current technical landscape advises a defensive stance or consideration of alternative investments within the sector.
Sector Context and Market Environment
The Computers - Software & Consulting sector has faced headwinds amid global technology spending uncertainties and competitive pressures. Sasken Technologies’ technical deterioration may reflect broader sector challenges, including margin pressures and evolving client demands. Comparatively, the Sensex’s positive returns over one year and longer periods underscore the selective nature of sector and stock performance.
Given the sector’s dynamic environment, technical analysis remains a vital tool for timing entry and exit points. Sasken’s current technical profile suggests that investors should remain vigilant and consider risk management strategies to mitigate potential losses.
Summary
Sasken Technologies Ltd’s stock is exhibiting a clear bearish momentum shift, confirmed by multiple technical indicators across daily, weekly, and monthly timeframes. The downgrade in Mojo Grade to Sell and the stock’s underperformance relative to the Sensex reinforce the cautious outlook. While some long-term accumulation signals exist, the prevailing trend remains negative, advising investors to approach with prudence and consider alternative opportunities within the sector.
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