Price Movement and Market Context
On 20 Feb 2026, Tata Power closed at ₹369.50, down 2.57% from the previous close of ₹379.25. The intraday range saw a high of ₹381.75 and a low of ₹368.25, reflecting heightened volatility. The stock remains below its 52-week high of ₹416.70 and above the 52-week low of ₹329.75, indicating a broad trading range but with recent weakness.
Comparatively, Tata Power’s one-week return of -2.87% underperformed the Sensex’s -1.41%, signalling relative weakness. However, over longer horizons, the stock has outpaced the benchmark with a 5-year return of 305.38% versus Sensex’s 62.11%, and a 10-year return of 528.40% compared to Sensex’s 247.96%. This long-term outperformance contrasts with the current short-term technical deterioration.
Technical Trend Shift: From Mildly Bearish to Bearish
The technical trend for Tata Power has shifted from mildly bearish to outright bearish, reflecting a worsening momentum profile. The daily moving averages have turned bearish, with the stock trading below key averages, signalling downward pressure. The weekly MACD indicator is firmly bearish, while the monthly MACD remains mildly bearish, indicating that momentum is weakening across multiple timeframes.
Bollinger Bands on the weekly chart have also turned bearish, with the price moving towards the lower band, suggesting increased selling pressure and potential for further downside. The monthly Bollinger Bands remain mildly bearish, reinforcing the cautious outlook.
Momentum Indicators: Mixed Signals but Overall Negative Bias
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This lack of momentum confirmation from RSI suggests that the stock is neither oversold nor overbought, but the absence of bullish RSI divergence limits upside potential in the near term.
The Know Sure Thing (KST) indicator is bearish on the weekly timeframe and mildly bearish on the monthly, further supporting the view of weakening momentum. Meanwhile, the On-Balance Volume (OBV) indicator shows no clear trend on either weekly or monthly charts, indicating that volume is not confirming any strong directional move.
Dow Theory and Broader Technical Context
Interestingly, the Dow Theory on the weekly chart remains mildly bullish, suggesting some underlying strength in the broader trend. However, the monthly Dow Theory shows no clear trend, reflecting uncertainty over the longer term. This divergence between short-term bearish momentum and mild bullish signals from Dow Theory highlights the complexity of the current technical landscape.
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Mojo Score and Market Capitalisation Assessment
Tata Power’s Mojo Score has declined to 28.0, reflecting a strong sell recommendation, a downgrade from the previous sell grade on 19 Feb 2026. This downgrade underscores the deteriorating technical and fundamental outlook. The company’s market cap grade remains at 1, indicating a relatively low market capitalisation compared to peers in the power sector, which may limit institutional interest and liquidity.
Sector and Industry Positioning
Operating within the power sector, Tata Power faces sectoral headwinds including regulatory challenges and fluctuating commodity prices. The power industry has seen mixed performance recently, with some companies benefiting from renewable energy transitions while others struggle with legacy infrastructure costs. Tata Power’s technical weakness may reflect broader sector pressures as well as company-specific factors.
Investor Implications and Outlook
For investors, the current technical signals suggest caution. The bearish moving averages and MACD, combined with the stock’s underperformance relative to the Sensex over the past week, indicate potential for further downside in the near term. The neutral RSI and lack of volume confirmation imply that any recovery may be tentative and short-lived without a catalyst.
Long-term investors may find comfort in Tata Power’s strong historical returns over five and ten years, but the recent technical deterioration warrants close monitoring. A sustained break below the 52-week low of ₹329.75 could trigger further selling pressure, while a rebound above key moving averages would be needed to restore confidence.
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Conclusion: Technical Weakness Dominates Near-Term Outlook
Tata Power Company Ltd’s technical parameters have shifted decisively towards bearishness, with multiple indicators signalling weakening momentum and increased downside risk. The downgrade to a strong sell Mojo Grade reflects this negative technical environment. While the stock’s long-term performance remains impressive, short-term investors should exercise caution and consider alternative opportunities until a clear technical recovery emerges.
Monitoring key support levels, particularly around ₹330, and watching for any improvement in moving averages and MACD will be critical for assessing the stock’s next directional move. Until then, the prevailing technical signals suggest a cautious stance is warranted.
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