Intraday Price Movement and Volatility
On the trading day, Tech Mahindra opened sharply lower, down 2.96% from its prior close, signalling immediate bearish sentiment. The stock continued to decline throughout the session, ultimately hitting an intraday low of Rs 1,603.2, marking a 6.55% drop. This intraday volatility was significant, with a weighted average price volatility of 111.75%, indicating substantial price swings within the day.
Despite the intraday weakness, the stock remained above its 50-day, 100-day, and 200-day moving averages, suggesting that longer-term technical support levels have not been breached. However, it traded below its 5-day and 20-day moving averages, reflecting short-term downward momentum.
Recent Performance Trends
Tech Mahindra has been on a declining trajectory for two consecutive trading days, cumulatively losing 5.51% in returns during this period. The one-day performance on 4 Feb 2026 was a decline of 4.51%, which contrasted sharply with the Sensex’s modest gain of 0.13% on the same day. Over the past week, the stock has fallen 7.05%, while the Sensex advanced 1.83%, highlighting the stock’s relative underperformance.
Longer-term performance shows a mixed picture. Over one month, Tech Mahindra gained 1.69%, outperforming the Sensex’s 2.23% decline. Over three months, the stock surged 16.29%, significantly ahead of the Sensex’s 0.47% rise. However, on a one-year basis, the stock declined 0.88%, lagging the Sensex’s 6.70% gain. Year-to-date, Tech Mahindra has posted a 2.94% gain, outperforming the Sensex’s 1.61% loss. Over three and five years, the stock has delivered strong cumulative returns of 61.87% and 69.02% respectively, both exceeding the Sensex’s corresponding gains.
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Sector and Market Context
The Computers - Software & Consulting sector, to which Tech Mahindra belongs, declined by 3.51% on the day, indicating broader sectoral weakness. Tech Mahindra underperformed the sector by 1.92%, reflecting additional company-specific pressures beyond sector trends.
Meanwhile, the broader market displayed resilience. The Sensex, after opening 487.07 points lower, rebounded sharply by 521.41 points to close at 83,773.47, a marginal gain of 0.04%. The index remains 2.85% below its 52-week high of 86,159.02. Notably, mega-cap stocks led the market recovery, while Tech Mahindra, despite its large-cap status, lagged behind.
Mojo Score and Rating Update
Tech Mahindra holds a Mojo Score of 71.0, categorised as a Buy rating, upgraded from a previous Hold on 14 Jan 2026. The company’s Market Cap Grade is 1, indicating a large-cap classification. Despite the recent intraday weakness, the rating upgrade reflects improved underlying fundamentals and quality metrics assessed by MarketsMOJO.
Technical Indicators and Moving Averages
The stock’s position relative to its moving averages provides insight into its technical condition. Trading above the 50-day, 100-day, and 200-day moving averages suggests that medium- and long-term trends remain intact. However, the stock’s trading below the 5-day and 20-day moving averages signals short-term selling pressure and potential consolidation or correction phases.
Volatility and Price Pressure
High intraday volatility of 111.75% underscores the unsettled trading environment for Tech Mahindra. The stock’s sharp intraday decline to Rs 1,603.2, down 6.55%, indicates strong price pressure. This volatility may be attributed to profit-taking or repositioning by market participants amid mixed sectoral and market signals.
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Summary of Market Sentiment
Tech Mahindra’s intraday decline and relative underperformance against both its sector and the Sensex reflect cautious market sentiment towards the stock on 4 Feb 2026. While the broader market showed resilience, the IT - Software sector faced headwinds, which weighed on Tech Mahindra’s price action. The stock’s short-term technical indicators point to continued pressure, although longer-term moving averages provide some support.
Investors and market participants are likely monitoring the stock’s price action closely amid this volatility, balancing the recent rating upgrade and strong longer-term performance against the immediate price pressure and sectoral weakness.
Conclusion
Tech Mahindra Ltd. experienced a challenging trading session marked by a significant intraday low of Rs 1,603.2, reflecting a 6.55% drop. The stock’s performance was impacted by sectoral declines and short-term technical pressures despite a positive rating upgrade and solid longer-term returns. Market volatility and price pressure remain key factors influencing the stock’s near-term trajectory.
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