Current Price Action and Market Context
As of 10 Feb 2026, Tata Communications Ltd (NSE: 952728) closed at ₹1,575.50, marking a 1.55% increase from the previous close of ₹1,551.45. The intraday range saw a low of ₹1,535.25 and a high of ₹1,582.00, indicating moderate volatility within the session. The stock remains well below its 52-week high of ₹2,004.00 but comfortably above the 52-week low of ₹1,293.00, reflecting a recovery phase after a period of consolidation.
Comparatively, the broader Sensex index has outperformed Tata Communications over multiple time horizons. While the stock has delivered a 0.39% return over the past week, the Sensex surged 2.94%. Over one month, Tata Communications declined 9.57%, contrasting with a modest 0.59% gain in the Sensex. Year-to-date, the stock is down 13.65%, significantly underperforming the Sensex’s 1.36% decline. Over longer periods, however, Tata Communications has shown resilience, with a 10-year return of 313.63% surpassing the Sensex’s 249.97% gain, underscoring its long-term growth potential despite recent headwinds.
Technical Trend Shift: Sideways to Mildly Bullish
The technical trend for Tata Communications has transitioned from a sideways pattern to a mildly bullish trajectory. This shift is primarily driven by daily moving averages, which have turned mildly bullish, signalling a potential uptrend in the short term. The stock’s price currently trades above key daily moving averages, suggesting improving buying interest.
However, the weekly and monthly technical indicators present a more mixed picture. The weekly MACD remains bearish, indicating that momentum on a medium-term basis is still subdued. The monthly MACD is mildly bearish, reinforcing the notion that the stock has yet to establish a strong upward momentum over the longer term.
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RSI and Momentum Oscillators: Divergent Signals
The Relative Strength Index (RSI) on the weekly chart is bullish, indicating that the stock has gained positive momentum in the short term. This suggests that buyers are increasingly active, potentially driving prices higher in the near future. Conversely, the monthly RSI shows no clear signal, reflecting a lack of decisive momentum over the longer term.
The Know Sure Thing (KST) indicator adds further complexity. On a weekly basis, KST remains bearish, signalling caution for medium-term investors. Yet, the monthly KST is mildly bullish, hinting at a possible emerging uptrend over the coming months. This divergence between weekly and monthly momentum oscillators underscores the importance of a multi-timeframe approach when analysing Tata Communications.
Bollinger Bands and Volatility Assessment
Bollinger Bands on both weekly and monthly charts are mildly bearish, suggesting that the stock is experiencing moderate volatility with a slight downward bias. The price currently trades near the lower band on the weekly timeframe, which could indicate oversold conditions and a potential bounce-back. However, the monthly mild bearishness implies that volatility remains elevated and investors should be cautious of sudden price swings.
Moving Averages and Volume Trends
Daily moving averages have turned mildly bullish, with the stock price trading above its 20-day and 50-day moving averages. This alignment typically signals short-term strength and can attract momentum traders. However, the absence of a clear trend in On-Balance Volume (OBV) on both weekly and monthly charts suggests that volume is not confirming the price moves, which may limit the sustainability of any rally.
Dow Theory and Trend Confirmation
According to Dow Theory, there is no definitive trend on either the weekly or monthly charts. This lack of confirmation from a classical trend analysis perspective indicates that Tata Communications remains in a consolidation phase, with neither bulls nor bears firmly in control. Investors should therefore monitor for a breakout or breakdown to confirm the next directional move.
Mojo Score and Rating Update
MarketsMOJO assigns Tata Communications a Mojo Score of 65.0, reflecting a Hold rating. This represents a downgrade from a previous Buy rating as of 04 Aug 2025. The Market Cap Grade stands at 2, indicating moderate market capitalisation strength within the telecom services sector. The downgrade reflects the mixed technical signals and recent underperformance relative to the broader market.
Long-Term Performance and Sector Context
Despite recent technical challenges, Tata Communications has delivered robust long-term returns. Over the past decade, the stock has appreciated by 313.63%, outperforming the Sensex’s 249.97% gain. Over five years, the stock’s 50.34% return trails the Sensex’s 63.78%, while the three-year return of 27.60% also lags the Sensex’s 38.25%. This suggests that while the company has strong fundamentals and growth potential, it has faced sector-specific or company-specific headwinds in recent years.
Within the telecom services sector, Tata Communications operates in a highly competitive environment marked by rapid technological change and pricing pressures. The mixed technical signals may reflect investor uncertainty about the company’s ability to sustain growth amid evolving market dynamics.
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Investor Takeaway and Outlook
For investors, Tata Communications presents a nuanced technical picture. The mildly bullish daily moving averages and weekly RSI suggest potential for short-term gains, but the bearish weekly MACD and Bollinger Bands caution against over-optimism. The absence of volume confirmation and lack of trend confirmation from Dow Theory further emphasise the need for prudence.
Given the stock’s recent underperformance relative to the Sensex and the downgrade to a Hold rating, investors may consider waiting for clearer technical confirmation before increasing exposure. Those with a longer-term horizon might view current levels as an opportunity to accumulate selectively, given the company’s strong decade-long performance and strategic position in the telecom services sector.
Monitoring key technical levels such as the 50-day moving average and the upper Bollinger Band will be critical in assessing whether Tata Communications can sustain a bullish momentum. Additionally, a shift in weekly MACD to a bullish stance would provide a stronger signal of trend reversal.
Summary of Technical Indicators:
- MACD: Weekly Bearish, Monthly Mildly Bearish
- RSI: Weekly Bullish, Monthly No Signal
- Bollinger Bands: Weekly and Monthly Mildly Bearish
- Moving Averages: Daily Mildly Bullish
- KST: Weekly Bearish, Monthly Mildly Bullish
- Dow Theory: No Trend on Weekly and Monthly
- OBV: No Trend on Weekly and Monthly
In conclusion, Tata Communications Ltd is at a technical crossroads, with mixed signals suggesting cautious optimism. Investors should weigh these factors carefully within the broader market and sector context before making allocation decisions.
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