Technical Trend Overview and Price Movement
As of 6 Jan 2026, Tech Mahindra’s share price closed at ₹1,600.00, down 0.68% from the previous close of ₹1,611.00. The stock traded within a daily range of ₹1,575.90 to ₹1,609.35, remaining below its 52-week high of ₹1,736.35 but comfortably above the 52-week low of ₹1,209.70. This price action reflects a consolidation phase following a period of moderate gains.
The technical trend has shifted from bullish to mildly bullish, signalling a tempering of upward momentum. This subtle change is underscored by the mixed signals from key technical indicators across different timeframes.
MACD Signals: Divergence Between Weekly and Monthly Perspectives
The Moving Average Convergence Divergence (MACD) indicator presents a bifurcated view. On the weekly chart, the MACD remains bullish, indicating that short-term momentum continues to favour buyers. This suggests that recent price advances have been supported by positive momentum, potentially providing a foundation for further gains in the near term.
Conversely, the monthly MACD has turned mildly bearish, signalling a weakening of longer-term momentum. This divergence implies that while short-term traders may find opportunities, longer-term investors should exercise caution as the broader trend shows signs of deceleration.
RSI and Bollinger Bands: Neutral to Mildly Bullish Signals
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, suggesting a balanced demand-supply dynamic without extreme price pressures.
Bollinger Bands provide a more optimistic outlook. Weekly Bollinger Bands are mildly bullish, reflecting price action near the upper band and suggesting potential for continued upward movement. The monthly Bollinger Bands are outright bullish, indicating that volatility-adjusted price levels support a positive trend over the longer term.
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Moving Averages and KST: Short-Term Strength Versus Longer-Term Caution
Daily moving averages remain bullish, reinforcing the short-term positive momentum. The stock price is trading above key moving averages, which often act as dynamic support levels, suggesting that buyers are still in control in the immediate term.
The Know Sure Thing (KST) indicator echoes this mixed sentiment. Weekly KST is bullish, supporting the notion of continued short-term strength. However, the monthly KST is mildly bearish, aligning with the monthly MACD’s cautionary stance and indicating that longer-term momentum is losing steam.
Dow Theory and On-Balance Volume (OBV): Lack of Clear Long-Term Direction
Dow Theory analysis reveals a mildly bearish trend on the weekly timeframe, while the monthly timeframe shows no clear trend. This suggests that the stock is in a phase of indecision or transition, with neither bulls nor bears firmly in control over the medium to long term.
On-Balance Volume (OBV) indicators on both weekly and monthly charts show no discernible trend, indicating that volume flow is not strongly supporting either buying or selling pressure. This volume neutrality further emphasises the current consolidation phase.
Comparative Returns: Tech Mahindra Versus Sensex
Examining Tech Mahindra’s returns relative to the benchmark Sensex provides additional context. Over the past week, the stock declined by 0.75%, while the Sensex gained 0.88%, reflecting short-term underperformance. However, over the past month, Tech Mahindra outperformed with a 1.92% gain compared to the Sensex’s 0.32% loss.
Year-to-date returns show a modest 0.54% increase for Tech Mahindra, slightly ahead of the Sensex’s 0.26%. Over the one-year horizon, the stock has underperformed, declining 5.27% against the Sensex’s robust 7.85% gain. Longer-term performance remains strong, with three-year returns of 58.29% versus 41.57% for the Sensex, and five-year returns of 59.35% trailing the Sensex’s 76.39%. Over a decade, Tech Mahindra has delivered a remarkable 207.34% return, closely tracking the Sensex’s 234.01%.
Mojo Score and Rating Upgrade
MarketsMOJO assigns Tech Mahindra a Mojo Score of 72.0, reflecting a solid technical and fundamental standing. The Mojo Grade was recently upgraded from Hold to Buy on 1 Jan 2026, signalling improved confidence in the stock’s prospects. The Market Cap Grade remains at 1, indicating a large-cap status with stable market capitalisation metrics.
Investment Implications and Outlook
The technical landscape for Tech Mahindra is characterised by a short-term bullish momentum tempered by caution on longer-term indicators. Investors should note the divergence between weekly and monthly MACD and KST signals, which suggest that while near-term price action may offer opportunities, the broader trend warrants vigilance.
Price consolidation near ₹1,600, supported by bullish daily moving averages and positive Bollinger Band signals, could provide a platform for renewed advances if volume and momentum indicators align. However, the absence of strong volume trends and the mildly bearish monthly momentum indicators caution against aggressive positioning without confirmation.
Given the mixed signals, a balanced approach is advisable. Investors with a medium to long-term horizon should monitor monthly MACD and KST developments closely, while short-term traders may capitalise on weekly bullish momentum and daily moving average support.
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Conclusion
Tech Mahindra Ltd. currently stands at a technical crossroads, with short-term indicators signalling bullish momentum while longer-term measures suggest a more cautious stance. The recent upgrade to a Buy rating by MarketsMOJO reflects confidence in the company’s fundamentals and near-term prospects, but the mixed technical signals advise a measured approach.
Investors should watch for confirmation of trend direction through volume and momentum indicators in the coming weeks. The stock’s relative strength against the Sensex over the medium term and its strong long-term returns underpin its appeal, but the recent price consolidation and technical divergences highlight the importance of disciplined risk management.
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