Key Events This Week
2 Feb: Stock opens at Rs.1,723.80 amid market weakness
3 Feb: New 52-week high of Rs.1,850 reached
4 Feb: Intraday low of Rs.1,603.20 amid heavy selling and open interest surge
5 Feb: Minor recovery with Rs.1,646.15 close
6 Feb: Week closes at Rs.1,619.10, down 1.64% on the day
2 February 2026: Weak Start Amid Broader Market Decline
Tech Mahindra began the week on a subdued note, closing at Rs.1,723.80, down 1.12% (Rs.19.50) from the previous Friday’s close of Rs.1,743.30. This decline mirrored the broader market, with the Sensex falling 1.03% to 35,814.09. The stock’s volume was moderate at 28,625 shares, reflecting cautious investor sentiment amid a negative market environment.
3 February 2026: New 52-Week High Amid Mixed Market Conditions
On 3 February, Tech Mahindra surged to a new 52-week high of Rs.1,850, marking a significant intraday gain of 7.32% from the previous close. Despite this strong performance, the stock closed at Rs.1,715.65, down 0.47% on the day, indicating some profit-taking after the intraday peak. The broader market rebounded strongly, with the Sensex gaining 2.63% to 36,755.96. The stock’s rally was supported by solid fundamentals, including a high return on equity of 16.46% and a robust return on capital employed of 21.57% for the half-year. Institutional investors hold a substantial 55.89% stake, underscoring confidence in the company’s prospects.
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4 February 2026: Sharp Intraday Decline and Open Interest Surge
The stock faced significant selling pressure on 4 February, closing at Rs.1,645.00, down 4.12% (Rs.70.65) from the previous day’s close. Intraday volatility was elevated at 111.75%, with the share price touching a low of Rs.1,603.20, a 6.55% drop from the prior close. This decline outpaced the IT - Software sector’s 3.51% fall and contrasted with the Sensex’s modest 0.37% gain. The opening gap down of 2.96% signalled immediate bearish sentiment.
Notably, derivatives activity surged, with open interest rising 14.58% to 53,172 contracts, accompanied by a total volume of 68,433 contracts. The futures segment alone accounted for ₹98,282 lakhs in value, while options turnover reached ₹59,047 crores, indicating heightened hedging and speculative activity. Despite the price weakness, delivery volumes increased by 25.99% on 3 February, suggesting accumulation by some investors.
Technically, the stock remained above its 50-day, 100-day, and 200-day moving averages but fell below the short-term 5-day and 20-day averages, reflecting short-term weakness amid longer-term support.
5 February 2026: Minor Recovery Amid Consolidation
On 5 February, Tech Mahindra showed signs of stabilisation, closing marginally higher at Rs.1,646.15, up 0.07% (Rs.1.15) from the previous day. The Sensex declined 0.53% to 36,695.11, while the stock’s volume dropped to 33,169 shares. This slight recovery followed two consecutive days of declines, indicating a possible consolidation phase as investors digested recent volatility and derivatives market activity.
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6 February 2026: Week Ends on a Soft Note
The week concluded with Tech Mahindra closing at Rs.1,619.10, down 1.64% (Rs.27.05) on the day. The Sensex edged up 0.10% to 36,730.20. The stock’s volume was 29,760 shares, reflecting moderate trading activity. The cumulative weekly decline of 7.12% contrasted sharply with the Sensex’s 1.51% gain, highlighting the stock’s underperformance amid mixed market signals and sectoral pressures.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.1,723.80 | -1.12% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.1,715.65 | -0.47% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.1,645.00 | -4.12% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.1,646.15 | +0.07% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.1,619.10 | -1.64% | 36,730.20 | +0.10% |
Key Takeaways
Positive Signals: Tech Mahindra’s new 52-week high of Rs.1,850 on 3 February demonstrated strong underlying momentum supported by solid financial metrics such as a 16.46% ROE and 21.57% ROCE. Institutional ownership remains high at 55.89%, reflecting confidence in the company’s fundamentals. The recent upgrade to a Mojo Grade of Buy with a score of 71.0 further endorses the stock’s medium-term prospects.
Cautionary Signals: The stock’s 7.12% weekly decline amid a 1.51% Sensex gain highlights short-term weakness and sectoral headwinds. Elevated intraday volatility and a sharp 14.58% surge in derivatives open interest on 4 February suggest increased speculative activity and uncertainty. The stock’s price trading below short-term moving averages signals potential near-term resistance and consolidation.
Conclusion
Tech Mahindra Ltd.’s week was characterised by a sharp reversal from a new 52-week high to a notable decline, reflecting a complex interplay of strong fundamentals, market volatility, and sector pressures. While the stock’s financial health and institutional backing remain robust, recent price action and derivatives market activity indicate heightened uncertainty and short-term weakness. Investors should monitor technical indicators and open interest trends closely as the stock navigates this consolidation phase amid a mixed broader market environment.
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