Price Movement and Market Context
Tata Communications Ltd (NSE: 952728), a key player in the Telecom - Services sector, closed at ₹1,644.50 on 26 Feb 2026, marking a 1.57% increase from the previous close of ₹1,619.10. The stock traded within a range of ₹1,584.45 to ₹1,658.85 during the day, reflecting moderate intraday volatility. Despite this positive daily movement, the stock remains below its 52-week high of ₹2,004.00 and comfortably above its 52-week low of ₹1,293.00, indicating a wide trading band over the past year.
Comparatively, Tata Communications has outperformed the Sensex over the one-year horizon, delivering a 17.04% return against the benchmark’s 10.29%. However, year-to-date (YTD) performance shows a decline of 9.87%, underperforming the Sensex’s 3.46% drop. Over longer periods, the stock’s returns are mixed: a 36.75% gain over three years trails the Sensex’s 38.36%, and a five-year return of 49.99% lags behind the Sensex’s 61.20%. Notably, the ten-year return of 396.98% significantly outpaces the Sensex’s 258.10%, underscoring the company’s long-term growth potential.
Technical Trend Analysis: Shift to Bearish Momentum
The technical trend for Tata Communications has shifted from mildly bearish to bearish, signalling increased downside risk in the near term. This shift is corroborated by several key indicators:
- Moving Averages (Daily): The stock is trading below its daily moving averages, a classic bearish signal indicating downward momentum in the short term.
- MACD (Moving Average Convergence Divergence): The weekly MACD remains bearish, reflecting sustained selling pressure. The monthly MACD is mildly bearish, suggesting some weakening in the downtrend but no clear reversal yet.
- Bollinger Bands: Weekly Bollinger Bands indicate bearish momentum, with the price gravitating towards the lower band. Monthly bands are mildly bearish, hinting at potential volatility but no decisive breakout.
Conversely, some indicators provide a more balanced or even mildly bullish outlook on longer timeframes:
- KST (Know Sure Thing): Weekly KST is bearish, but the monthly KST has turned mildly bullish, signalling possible momentum building over the medium term.
- Dow Theory: Weekly signals are mildly bullish, while monthly trends show no clear direction, reflecting market indecision at higher timeframes.
- RSI (Relative Strength Index): Both weekly and monthly RSI readings currently show no strong signal, indicating the stock is neither overbought nor oversold.
Volume and On-Balance Volume (OBV) Insights
Volume-based indicators such as OBV show no definitive trend on weekly or monthly charts, suggesting that trading volumes have not decisively confirmed the price movements. This lack of volume confirmation often signals caution, as price moves without volume support may lack sustainability.
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Mojo Score and Grade Upgrade
Reflecting these technical developments, Tata Communications’ MarketsMOJO score stands at 50.0, with a Mojo Grade upgraded from Sell to Hold as of 24 Feb 2026. This upgrade signals a cautious improvement in the stock’s outlook, though it remains a neutral recommendation rather than a clear buy. The company’s market cap grade is 2, indicating a mid-tier valuation relative to its peers in the Telecom - Services sector.
Interpreting the Mixed Technical Signals
The juxtaposition of bearish short-term indicators with mildly bullish monthly signals suggests that Tata Communications is at a technical crossroads. The daily and weekly charts warn of potential near-term weakness, while monthly indicators hint at a possible stabilisation or recovery in the medium term. Investors should monitor key support levels near ₹1,580 and resistance around ₹1,660 to gauge the stock’s next directional move.
Given the absence of strong RSI signals, the stock is not currently in an extreme condition, which may allow for a measured rebound if buying interest returns. However, the bearish MACD and moving averages caution against aggressive long positions until clearer confirmation emerges.
Comparative Sector and Market Performance
Within the Telecom - Services sector, Tata Communications’ performance is mixed but generally in line with sector trends. The stock’s one-month return of 5.29% outpaces the Sensex’s 0.91%, indicating short-term relative strength. However, the year-to-date underperformance and bearish technical trend suggest investors should remain vigilant amid broader market uncertainties.
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Investor Takeaway and Outlook
For investors, Tata Communications presents a nuanced technical picture. The recent upgrade to a Hold rating reflects a tentative improvement, but the prevailing bearish momentum on shorter timeframes advises caution. Traders may consider waiting for confirmation of a trend reversal, such as a sustained move above daily moving averages or a bullish MACD crossover, before increasing exposure.
Long-term investors can take comfort from the stock’s strong ten-year returns and relative resilience compared to the Sensex. However, the current technical signals suggest that near-term volatility and downside risk remain elevated. Monitoring volume trends and key technical levels will be critical to navigating the stock’s path forward.
Summary of Key Technical Indicators for Tata Communications Ltd
- Technical Trend: Shifted from mildly bearish to bearish
- MACD: Weekly - Bearish; Monthly - Mildly Bearish
- RSI: Weekly & Monthly - No clear signal
- Bollinger Bands: Weekly - Bearish; Monthly - Mildly Bearish
- Moving Averages (Daily): Bearish
- KST: Weekly - Bearish; Monthly - Mildly Bullish
- Dow Theory: Weekly - Mildly Bullish; Monthly - No Trend
- OBV: Weekly & Monthly - No Trend
In conclusion, Tata Communications Ltd’s technical parameters indicate a cautious stance for investors, balancing short-term bearish momentum against potential medium-term stabilisation. Close attention to evolving technical signals will be essential for informed decision-making in the coming weeks.
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