Sterlite Technologies Ltd Technical Momentum Shifts to Bullish Amid Mixed Indicators

Technical Trend Upgrade Reflects Growing Confidence

On 16 Feb 2026, Sterlite Technologies Ltd’s technical grade was upgraded from Sell to Hold, with a Mojo Score rising to 51.0. This upgrade reflects a positive reassessment of the stock’s near-term prospects, supported by a shift in technical trends from mildly bullish to bullish. The company’s current market capitalisation grade stands at 3, indicating a mid-tier valuation within its sector.

The stock closed at ₹153.65 on 17 Feb 2026, down 1.44% from the previous close of ₹155.90. Intraday volatility saw a high of ₹157.90 and a low of ₹151.90, suggesting some short-term profit-taking despite the broader positive technical signals.

MACD and Moving Averages Signal Strengthening Uptrend

The Moving Average Convergence Divergence (MACD) indicator remains bullish on both weekly and monthly timeframes, signalling sustained upward momentum. This is complemented by daily moving averages that also maintain a bullish posture, reinforcing the stock’s positive price trajectory. The alignment of these indicators suggests that the recent price corrections may be temporary pullbacks within a broader uptrend.

Moving averages on the daily chart continue to support the stock price, with the short-term averages positioned above longer-term averages, a classic bullish signal. This technical setup often attracts momentum traders and institutional investors looking for confirmation of trend strength.

RSI Presents Mixed Signals, Highlighting Caution

Relative Strength Index (RSI) readings present a more nuanced picture. While the weekly RSI shows no clear signal, the monthly RSI remains bearish. This divergence indicates that although short-term momentum is improving, longer-term momentum may still be under pressure. Investors should be cautious of potential overextension or consolidation phases in the coming weeks.

The bearish monthly RSI suggests that the stock may have experienced some overbought conditions in the past months, necessitating a period of correction or sideways movement before further gains can be sustained.

Bollinger Bands and KST Confirm Bullish Bias

Bollinger Bands on the weekly chart are mildly bullish, while the monthly bands confirm a bullish trend. This indicates that price volatility is contained within an upward channel, supporting the case for continued price appreciation. The Know Sure Thing (KST) indicator also aligns with this view, showing bullish signals on both weekly and monthly charts.

These indicators collectively suggest that Sterlite Technologies Ltd is in a phase of constructive price consolidation, which often precedes significant upward moves.

Other Technical Measures: Dow Theory and OBV

Dow Theory analysis shows no clear trend on the weekly timeframe but indicates a mildly bullish trend on the monthly scale. Meanwhile, On-Balance Volume (OBV) is neutral weekly but bullish monthly, signalling that buying volume is gradually increasing over the longer term. This volume-price relationship is critical for confirming the sustainability of the current bullish momentum.

Comparative Performance Against Sensex

Sterlite Technologies Ltd has outperformed the Sensex significantly over multiple periods. The stock’s one-week return stands at 7.56%, compared to the Sensex’s decline of 0.94%. Over one month, the stock surged 63.28%, while the Sensex was down 0.35%. Year-to-date, Sterlite Tech has gained 48.24%, contrasting with the Sensex’s 2.28% loss.

Over the past year, the stock’s return of 113.62% dwarfs the Sensex’s 9.66% gain, highlighting the company’s strong growth trajectory. However, over longer horizons such as three, five, and ten years, the stock’s returns of 20.30%, 10.16%, and 185.12% respectively lag behind the Sensex’s 35.81%, 59.83%, and 259.08%. This suggests that while recent momentum is robust, the stock has historically underperformed the broader market over extended periods.

Sector Context and Industry Positioning

Sterlite Technologies operates within the Telecom - Equipment & Accessories sector, a space characterised by rapid technological evolution and competitive pressures. The company’s technical upgrade to a Hold rating with a Mojo Score of 51.0 reflects a stabilising outlook amid sector volatility.

Its market cap grade of 3 places it in a moderate valuation bracket, suggesting room for growth relative to larger peers. The recent bullish technical signals may attract investors seeking exposure to telecom infrastructure growth, especially as 5G rollouts and fibre optic deployments accelerate across India and globally.

Price Action and Volatility Insights

Despite the bullish technical backdrop, the stock’s day change of -1.44% on 17 Feb 2026 indicates some short-term profit-taking or market hesitation. The 52-week high of ₹163.40 and low of ₹53.90 illustrate significant price appreciation over the past year, with the current price near the upper range, which may invite cautious trading.

Investors should monitor price action around the ₹155-158 range, which has acted as a resistance zone in recent sessions. A sustained breakout above this level, supported by volume, could confirm the bullish momentum and open the path towards the 52-week high.

Outlook and Investor Considerations

The technical upgrade and mixed indicator signals suggest that Sterlite Technologies Ltd is at a pivotal juncture. The bullish MACD, moving averages, and KST indicators provide a strong foundation for potential upside, while the bearish monthly RSI and recent price dip counsel prudence.

Investors should consider the stock’s recent outperformance relative to the Sensex and its sector peers, balanced against the possibility of short-term consolidation. A Hold rating remains appropriate given the current technical and fundamental landscape, with potential for upgrade should momentum sustain.

Summary of Technical Ratings and Market Position

Sterlite Technologies Ltd’s technical indicators present a cautiously optimistic picture. The weekly and monthly MACD and KST indicators are bullish, daily moving averages support an uptrend, and Bollinger Bands suggest contained volatility within an upward channel. Conversely, the monthly RSI remains bearish, and weekly Dow Theory and OBV readings show no clear trend, indicating some uncertainty.

The stock’s recent upgrade from Sell to Hold by MarketsMOJO on 16 Feb 2026, with a Mojo Score of 51.0, reflects this balanced outlook. Investors should watch for confirmation of trend continuation through price and volume action in the coming weeks.

Given the stock’s strong recent returns—113.62% over one year compared to Sensex’s 9.66%—Sterlite Technologies remains an attractive candidate for investors seeking exposure to the telecom equipment sector’s growth, albeit with a measured approach due to mixed momentum signals.

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