Tata Communications Ltd Faces Bearish Technical Shift Amid Market Pressure

Technical Trend Shift and Price Movement

The telecom services company’s share price closed at ₹1,654.25 on 20 Feb 2026, down slightly by 0.12% from the previous close of ₹1,656.20. The intraday range saw a high of ₹1,677.00 and a low of ₹1,645.00, reflecting subdued volatility. Over the past week, Tata Communications has underperformed the broader market, with a 1W return of -2.77% compared to the Sensex’s -1.41%. This underperformance extends to the monthly and year-to-date periods, where the stock has declined by 6.22% and 9.34% respectively, against Sensex returns of -0.90% and -3.19%.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart and mildly bearish on the monthly chart, signalling that downward momentum is prevailing in the short to medium term. The bearish weekly MACD suggests that recent price action is dominated by selling pressure, while the mildly bearish monthly MACD indicates that the longer-term trend is also weakening, though not decisively so.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) currently shows no clear signal on both weekly and monthly timeframes, hovering in a neutral zone that neither indicates overbought nor oversold conditions. This lack of directional RSI signal suggests that the stock is consolidating but remains vulnerable to further downside if selling intensifies.

Bollinger Bands reinforce the bearish outlook, with the weekly bands indicating a bearish stance and the monthly bands mildly bearish. The price is trading near the lower band on the weekly chart, which often signals increased volatility and potential continuation of the downward trend rather than an imminent reversal.

Moving Averages and KST Indicator

Daily moving averages have turned bearish, with the stock price trading below key averages such as the 50-day and 200-day moving averages. This technical positioning confirms the prevailing negative momentum and suggests resistance at higher levels. The Know Sure Thing (KST) indicator presents a mixed picture: bearish on the weekly timeframe but mildly bullish on the monthly. This divergence indicates some underlying strength in the longer-term momentum, though it is currently overshadowed by short-term weakness.

Volume and Dow Theory Signals

On-Balance Volume (OBV) and Dow Theory indicators show no clear trend on either weekly or monthly charts, implying that volume patterns and market breadth are not providing strong confirmation for either bulls or bears. This absence of volume support for price moves adds to the uncertainty and suggests that any directional move may lack conviction.

Comparative Performance and Market Context

Despite recent technical setbacks, Tata Communications has delivered strong long-term returns. Over the past year, the stock has gained 10.43%, outperforming the Sensex’s 8.64% rise. Over five and ten years, the stock’s returns have been 64.86% and an impressive 379.42% respectively, significantly outpacing the Sensex’s 62.11% and 247.96% gains. This long-term outperformance highlights the company’s resilience and growth potential despite short-term technical challenges.

Mojo Grade Downgrade Reflects Technical Weakness

Reflecting the deteriorating technical landscape, Tata Communications’ Mojo Grade was downgraded from Hold to Sell on 16 Feb 2026. The current Mojo Score stands at 44.0, indicating a weak technical outlook. The Market Cap Grade remains low at 2, underscoring the stock’s limited market capitalisation strength relative to peers. This downgrade signals caution for investors, suggesting that the stock may face further downside pressure unless technical conditions improve.

Sector and Industry Positioning

Operating within the Telecom - Services sector, Tata Communications faces competitive pressures and evolving industry dynamics. The sector has seen mixed performance recently, with some peers showing resilience while others struggle with regulatory and technological challenges. Tata Communications’ current technical indicators place it in a vulnerable position relative to its industry peers, emphasising the need for investors to monitor developments closely.

Outlook and Investor Considerations

Given the bearish technical signals across multiple indicators, investors should exercise caution with Tata Communications in the near term. The absence of strong volume confirmation and neutral RSI readings suggest that the stock could remain range-bound or decline further before any meaningful recovery. However, the long-term return profile remains attractive, which may appeal to investors with a longer investment horizon willing to weather short-term volatility.

Summary

Tata Communications Ltd is currently navigating a challenging technical environment, with key momentum indicators signalling bearish trends. The downgrade in Mojo Grade to Sell reflects this shift, underscoring the need for investors to be vigilant. While short-term technicals suggest caution, the company’s strong long-term returns and sector positioning may offer opportunities for patient investors. Monitoring technical indicators such as MACD, moving averages, and Bollinger Bands will be crucial in assessing any potential reversal or further deterioration in momentum.

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