Key Events This Week
2026-01-01: Golden Cross formation signalling potential bullish breakout
2026-01-02: Mojo Grade upgraded to Buy on strong technical and financial metrics
2026-01-02: Technical momentum shifts to bullish outlook confirmed by multiple indicators
2026-01-02: Week closes at Rs.1,611.00 (-0.14%)
Monday, 29 December 2025: Modest Decline Amid Broader Market Weakness
Tech Mahindra opened the week at Rs.1,612.10, slipping slightly by 0.07% from the previous Friday’s close of Rs.1,613.20. This marginal decline occurred alongside a 0.41% drop in the Sensex to 37,140.23, reflecting a cautious market mood. The stock’s volume of 26,424 shares indicated moderate trading interest, but no significant catalysts emerged to drive price movement.
Tuesday, 30 December 2025: Continued Downtrend with Slight Underperformance
The stock price fell further to Rs.1,604.80, a 0.45% decrease, while the Sensex remained nearly flat, down 0.01% at 37,135.83. The volume declined to 23,229 shares, suggesting reduced trading activity. The lack of positive news and subdued market sentiment contributed to the stock’s underperformance relative to the benchmark.
Wednesday, 31 December 2025: Sharper Decline Despite Sensex Rally
On the last trading day of 2025, Tech Mahindra’s shares dropped 0.83% to Rs.1,591.40, marking the week’s lowest close. This decline contrasted with a strong Sensex gain of 0.83% to 37,443.41, highlighting the stock’s relative weakness. Volume fell further to 18,544 shares, indicating cautious investor sentiment ahead of the new year.
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Thursday, 1 January 2026: Golden Cross Formation Spurs Bullish Sentiment
Tech Mahindra rebounded strongly on the first trading day of 2026, gaining 0.98% to close at Rs.1,607.05. This price action coincided with the formation of a Golden Cross, where the 50-day moving average crossed above the 200-day moving average, a widely recognised bullish technical signal. The stock traded within a range of Rs.1,587.40 to Rs.1,613.00, maintaining proximity to its 52-week high of Rs.1,736.35.
The Golden Cross suggests a potential trend reversal and improved long-term momentum, supported by bullish daily and weekly technical indicators such as MACD and Bollinger Bands. This development was accompanied by an upgrade in the Mojo Grade from Hold to Buy, reflecting enhanced analyst confidence. The volume rose to 23,794 shares, indicating renewed investor interest.
Friday, 2 January 2026: Technical Momentum Strengthens Amid Upgrade
On the final day of the week, Tech Mahindra edged up 0.25% to Rs.1,611.00, supported by a bullish shift in technical momentum. Multiple indicators including MACD, RSI, and moving averages signalled a confident upward trend, while on-balance volume confirmed accumulation. Despite some mildly bearish monthly signals, the overall technical outlook turned positive.
The stock’s Mojo Score stands at 72.0 with a Buy rating, reflecting strong technical and financial metrics. Institutional investors hold a significant 55.41% stake, underscoring confidence from sophisticated market participants. The company reported consistent profit growth, with a 26.76% increase in PAT over the first nine months of FY25-26 and a robust ROCE of 21.57% for the half-year period.
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| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2025-12-29 | Rs.1,612.10 | -0.07% | 37,140.23 | -0.41% |
| 2025-12-30 | Rs.1,604.80 | -0.45% | 37,135.83 | -0.01% |
| 2025-12-31 | Rs.1,591.40 | -0.83% | 37,443.41 | +0.83% |
| 2026-01-01 | Rs.1,607.05 | +0.98% | 37,497.10 | +0.14% |
| 2026-01-02 | Rs.1,611.00 | +0.25% | 37,799.57 | +0.81% |
Key Takeaways
Positive Signals: The formation of the Golden Cross on 1 January 2026 marked a pivotal technical event, signalling a potential bullish breakout and improved long-term momentum. The upgrade in Mojo Grade to Buy and a Mojo Score of 72.0 reinforce this positive outlook. Financially, Tech Mahindra demonstrated strong profit growth, operational efficiency, and institutional backing, with a 26.76% PAT increase and a 21.57% ROCE for the half-year period.
Cautionary Notes: Despite the technical optimism, the stock underperformed the Sensex over the week and the past year, reflecting some lingering concerns about valuation and growth sustainability. Monthly technical indicators remain mildly bearish or neutral, suggesting that longer-term momentum requires monitoring. The premium valuation metrics, including a P/E ratio of 35.11 and a P/B ratio of 5.7, may limit upside potential if growth slows.
Conclusion
Tech Mahindra Ltd.’s week was characterised by a subtle decline in price amid a broader market rally, but the emergence of a Golden Cross and a subsequent upgrade in analyst sentiment signal a potential shift towards sustained bullish momentum. The stock’s technical indicators and financial fundamentals present a balanced picture of opportunity and caution. Investors should weigh the recent positive technical developments against valuation considerations and the mixed performance relative to the Sensex. Overall, the stock appears poised for selective accumulation as it navigates early 2026 with improving momentum and solid operational metrics.
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