Tata Communications Ltd Technical Momentum Shifts Amid Mixed Market Signals

Current Market Performance and Price Action

As of 25 Feb 2026, Tata Communications Ltd (NSE: 952728) closed at ₹1,628.30, down 3.09% from the previous close of ₹1,680.15. The stock’s intraday range was between ₹1,591.05 and ₹1,679.95, indicating heightened volatility. Over the past 52 weeks, the share price has fluctuated between a low of ₹1,293.00 and a high of ₹2,004.00, underscoring a wide trading band that reflects both market uncertainty and opportunity.

Comparatively, the stock’s recent weekly return of -1.37% slightly outperformed the Sensex’s -1.47% over the same period. However, year-to-date (YTD) performance remains weak at -10.76%, significantly lagging the Sensex’s -3.51%. Over longer horizons, Tata Communications has delivered a 13.62% return over one year and an impressive 378.07% over ten years, outperforming the Sensex’s 256.13% gain in the same decade.

Technical Indicator Analysis: Mixed Signals Across Timeframes

The technical landscape for Tata Communications is nuanced, with several key indicators offering divergent signals across weekly, monthly, and daily timeframes.

MACD (Moving Average Convergence Divergence): The weekly MACD remains bearish, signalling downward momentum in the short term. The monthly MACD, however, has softened to a mildly bearish stance, suggesting that longer-term selling pressure may be easing but not yet reversing.

RSI (Relative Strength Index): Weekly RSI readings have turned bullish, indicating that the stock may be gaining upward momentum and could be approaching oversold conditions that often precede a rebound. The monthly RSI, however, shows no clear signal, reflecting a neutral stance over the longer term.

Bollinger Bands: On a weekly basis, Bollinger Bands remain bearish, with the stock price trending near the lower band, which often signals increased volatility and potential downside risk. Monthly Bollinger Bands have shifted to mildly bearish, consistent with the MACD’s longer-term outlook.

Moving Averages: Daily moving averages continue to be bearish, with the stock trading below key averages such as the 50-day and 200-day moving averages. This suggests that short-term price momentum remains weak and that the stock has yet to establish a sustained recovery.

KST (Know Sure Thing): The weekly KST indicator is bearish, reinforcing short-term caution. Conversely, the monthly KST has improved to mildly bullish, hinting at a potential longer-term trend reversal if momentum continues to build.

Dow Theory: Weekly Dow Theory analysis is mildly bullish, indicating that the stock may be forming a base or beginning a new upward phase. Monthly Dow Theory shows no clear trend, reflecting uncertainty in the broader market context.

On-Balance Volume (OBV): Both weekly and monthly OBV indicators show no discernible trend, suggesting that volume flows have not decisively confirmed either buying or selling pressure recently.

Technical Trend Shift and Market Implications

The overall technical trend for Tata Communications has shifted from outright bearish to mildly bearish, reflecting a tentative improvement in momentum but still cautioning investors. This shift is significant as it suggests that while the stock remains under pressure, the intensity of selling has moderated, potentially setting the stage for a stabilisation or gradual recovery.

Investors should note that the daily moving averages remain bearish, which means short-term price action is still weak. However, the weekly RSI’s bullish signal and the mildly bullish monthly KST and Dow Theory readings provide some optimism for medium to longer-term investors. This divergence between short-term weakness and longer-term potential recovery is a common pattern in stocks undergoing consolidation phases.

Given the stock’s recent 3.09% decline on 25 Feb 2026, traders may look for confirmation of a bottom before committing fresh capital. Support levels near the 52-week low of ₹1,293.00 could act as a floor, while resistance near the recent high of ₹2,004.00 remains a key target for any sustained rally.

Comparative Performance and Sector Context

Within the Telecom - Services sector, Tata Communications holds a Mojo Score of 50.0 and a Mojo Grade of Hold, upgraded from Sell on 24 Feb 2026. This upgrade reflects a recognition of improving technical and fundamental conditions, although the stock’s Market Cap Grade remains low at 2, indicating a relatively modest market capitalisation compared to peers.

When compared to the broader Sensex index, Tata Communications has underperformed on a year-to-date basis but outperformed over the one-year and ten-year horizons. This suggests that while short-term headwinds persist, the company’s long-term growth story remains intact, supported by its strategic positioning in the telecom services industry.

Investor Takeaway and Outlook

For investors evaluating Tata Communications Ltd, the current technical signals suggest a cautious but watchful stance. The mildly bearish overall trend combined with mixed indicator readings implies that the stock is in a phase of consolidation rather than a clear directional move. The weekly RSI’s bullishness and monthly KST’s mild improvement offer hope for a potential turnaround, but the persistent bearish daily moving averages and MACD caution against premature optimism.

Long-term investors may find value in the stock’s attractive historical returns and improving fundamental outlook, as reflected in the recent Mojo Grade upgrade. However, short-term traders should monitor key technical levels closely, particularly the support near ₹1,293 and resistance around ₹2,000, to gauge momentum shifts.

Overall, Tata Communications remains a stock with a complex technical profile, balancing between recovery potential and ongoing market pressures. Investors are advised to combine technical analysis with fundamental insights and sector trends to make informed decisions in this evolving landscape.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today