Key Events This Week
23 Feb: Stock opens at Rs.1,680.15, down 0.59% despite Sensex gain
24 Feb: Sharp decline of 3.63% on weak volume and Sensex fall
25 Feb: Mojo Grade upgraded to Hold by MarketsMOJO on technical and valuation improvements
26 Feb: Technical momentum shifts to bearish despite 1.62% price gain
27 Feb: Week closes at Rs.1,596.25, down 3.94% on heavy selling
Monday, 23 February 2026: Modest Decline Amid Sensex Gains
Tata Communications began the week at Rs.1,680.15, down 0.59% from the previous close, while the Sensex rose 0.39% to 36,817.86. The stock’s decline contrasted with the broader market’s positive momentum, signalling early weakness. Trading volume was moderate at 10,295 shares, reflecting cautious investor sentiment ahead of key developments later in the week.
Tuesday, 24 February 2026: Sharp Drop on Weak Market and Volume
The stock fell sharply by 3.63% to Rs.1,619.10, on lower volume of 5,950 shares, as the Sensex declined 0.78% to 36,530.09. This day marked the steepest single-session loss of the week, reflecting intensified selling pressure amid broader market weakness. The decline set the stage for the subsequent technical upgrade announcement.
Wednesday, 25 February 2026: Mojo Grade Upgrade and Mixed Technical Signals
On 25 February, Tata Communications was upgraded by MarketsMOJO from a 'Sell' to a 'Hold' rating, citing improvements in technical indicators and valuation metrics. The stock closed at Rs.1,635.25, up 1.00% on heavy volume of 260,469 shares, outperforming the Sensex’s 0.41% gain to 36,679.75. Despite this positive rating shift, the stock remained below its 52-week high of Rs.2,004.00, reflecting ongoing challenges.
The upgrade was driven by a shift in technical momentum from bearish to mildly bearish, with weekly RSI turning bullish and monthly MACD softening. Valuation metrics showed the stock trading at a discount relative to peers, with a robust ROCE of 18.37% and an attractive Enterprise Value to Capital Employed ratio of 3.8. However, the PEG ratio remained elevated at 9.5, indicating modest profit growth expectations.
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Thursday, 26 February 2026: Technical Momentum Turns Bearish Despite Price Gain
The stock gained 1.62% to close at Rs.1,661.75 on moderate volume of 13,507 shares, outperforming the Sensex’s 0.19% rise to 36,748.49. However, technical momentum shifted from mildly bearish to bearish, reflecting increased caution. Key indicators such as MACD remained bearish on weekly charts, while RSI showed neutral readings on weekly and monthly timeframes.
Bollinger Bands continued to signal downside risk, and daily moving averages remained bearish, indicating persistent short-term selling pressure. The Know Sure Thing (KST) indicator presented mixed signals, bearish weekly but mildly bullish monthly, while Dow Theory showed mildly bullish weekly trends but neutral monthly. On-balance volume (OBV) lacked clear directional trend, suggesting subdued market conviction.
Friday, 27 February 2026: Heavy Selling Closes Week Lower
On the final trading day of the week, Tata Communications declined 3.94% to Rs.1,596.25 on increased volume of 20,296 shares, underperforming the Sensex’s 1.16% fall to 36,322.56. This marked the week’s lowest close and capped a 5.55% weekly loss. The decline reflected profit-taking and technical weakness amid broader market volatility.
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Weekly Price Performance: Tata Communications vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-23 | Rs.1,680.15 | -0.59% | 36,817.86 | +0.39% |
| 2026-02-24 | Rs.1,619.10 | -3.63% | 36,530.09 | -0.78% |
| 2026-02-25 | Rs.1,635.25 | +1.00% | 36,679.75 | +0.41% |
| 2026-02-26 | Rs.1,661.75 | +1.62% | 36,748.49 | +0.19% |
| 2026-02-27 | Rs.1,596.25 | -3.94% | 36,322.56 | -1.16% |
Key Takeaways from the Week
Positive Signals: The upgrade to a Hold rating by MarketsMOJO on 24 February reflected improved technical indicators such as a bullish weekly RSI and softened monthly MACD, alongside attractive valuation metrics including a strong ROCE of 18.37% and reasonable Enterprise Value to Capital Employed ratio of 3.8. The stock’s long-term returns remain robust, with a 10-year gain of 378.07%, outperforming the Sensex.
Cautionary Factors: Despite technical improvements, the stock faced persistent short-term selling pressure, reflected in daily moving averages and bearish MACD on weekly charts. Financial performance remains flat with modest profit growth, and the company carries a high debt-to-equity ratio of 12.62 times, increasing financial risk. The stock underperformed the Sensex over the week, falling 5.55% compared to the index’s 0.96% decline.
Market Context: Tata Communications operates in a competitive telecom services sector undergoing rapid technological change. Mixed technical signals and subdued volume trends suggest investor caution amid regulatory and sectoral uncertainties. The stock’s recent price volatility underscores the need for close monitoring of support levels near Rs.1,600 and evolving technical momentum.
Conclusion: A Week of Mixed Momentum and Valuation Reassessment
Tata Communications Ltd’s week was marked by a technical upgrade to Hold, signalling a cautious shift from bearishness amid improved valuation and some positive momentum indicators. However, the stock’s 5.55% weekly decline and persistent bearish signals in key technical indicators highlight ongoing challenges. The company’s flat financial trends and high leverage temper optimism, suggesting that while downside risk may be moderating, a sustained recovery remains uncertain.
Investors should weigh the balanced outlook reflected in the Mojo Grade of Hold, recognising Tata Communications’ long-term resilience but acknowledging the current consolidation phase. Monitoring technical developments and sector dynamics will be essential to assess the stock’s trajectory in the coming weeks.
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