Price Movement and Market Context
On 9 Feb 2026, Tech Mahindra’s share price closed at ₹1,618.30, down 1.69% from the previous close of ₹1,646.15. The stock traded within a range of ₹1,600.10 to ₹1,651.95 during the day, remaining below its 52-week high of ₹1,850.00 but comfortably above the 52-week low of ₹1,209.70. This price action reflects a degree of volatility amid broader market fluctuations.
Comparatively, the stock’s recent returns have been mixed against the Sensex benchmark. Over the past week, Tech Mahindra declined by 7.17%, contrasting with the Sensex’s 1.59% gain. However, on a one-month and year-to-date basis, the stock outperformed the Sensex, delivering returns of 1.09% and 1.69% respectively, while the Sensex fell by 1.74% and 1.92%. Over longer horizons, Tech Mahindra has demonstrated robust growth, with a three-year return of 60.96% versus Sensex’s 38.13%, a five-year return of 68.66% compared to 64.75%, and a remarkable ten-year return of 240.80% marginally surpassing the Sensex’s 239.52%.
Technical Indicator Analysis
The technical landscape for Tech Mahindra reveals a nuanced picture. The Moving Average Convergence Divergence (MACD) indicator presents a divergence between weekly and monthly signals. On a weekly basis, the MACD remains bullish, indicating positive momentum in the short term. Conversely, the monthly MACD has turned mildly bearish, signalling potential medium-term caution.
The Relative Strength Index (RSI) offers no definitive signals on either the weekly or monthly charts, suggesting that the stock is neither overbought nor oversold at present. This neutral RSI reading implies that momentum could swing in either direction depending on forthcoming market catalysts.
Bollinger Bands on both weekly and monthly timeframes are mildly bullish, indicating that price volatility is contained within an upward trending channel. This suggests a controlled environment for price appreciation, albeit without strong breakout signals.
Daily moving averages reinforce a mildly bullish trend, with short-term averages positioned above longer-term averages, supporting a cautiously optimistic outlook for near-term price action.
Additional Technical Trends
The Know Sure Thing (KST) oscillator aligns with the MACD, showing bullish momentum on the weekly chart but a mildly bearish tone on the monthly chart. This divergence underscores the importance of monitoring both short- and medium-term trends to gauge the stock’s trajectory accurately.
Dow Theory analysis remains positive, with both weekly and monthly trends classified as bullish. This traditional market theory suggests that the stock is in an overall upward trend, supported by higher highs and higher lows.
On-Balance Volume (OBV) readings are bullish on the weekly scale, indicating accumulation by investors, but show no clear trend on the monthly scale, reflecting uncertainty in longer-term volume dynamics.
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Mojo Score and Grade Revision
Tech Mahindra’s current Mojo Score stands at 64.0, reflecting a Hold rating, a downgrade from its previous Buy grade as of 6 Feb 2026. This adjustment signals a more cautious stance by analysts, likely influenced by the mixed technical signals and recent price weakness. The company holds a Market Cap Grade of 1, indicating a relatively modest market capitalisation ranking within its sector.
The downgrade suggests that while the stock retains underlying strength, investors should be mindful of potential headwinds and monitor technical developments closely before committing to new positions.
Sector and Industry Positioning
Operating within the Computers - Software & Consulting sector, Tech Mahindra faces competitive pressures and rapid technological evolution. Its technical indicators, particularly the bullish weekly MACD and Dow Theory trends, suggest resilience amid sector volatility. However, the mildly bearish monthly MACD and KST readings caution that medium-term momentum may be under pressure, possibly reflecting broader industry challenges or company-specific factors.
Investors should weigh these technical insights alongside fundamental analysis and sector trends to form a comprehensive view.
Strategic Implications for Investors
The current mildly bullish technical trend indicates that Tech Mahindra may offer selective buying opportunities, especially for traders focusing on short-term momentum. However, the absence of strong RSI signals and the divergence between weekly and monthly indicators advise prudence. Investors with a longer-term horizon might consider waiting for clearer confirmation of trend direction before increasing exposure.
Given the stock’s recent underperformance relative to the Sensex over the past week and year, alongside its strong multi-year returns, a balanced approach that incorporates both technical and fundamental factors is advisable.
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Conclusion: Navigating Mixed Technical Signals
Tech Mahindra Ltd.’s recent technical parameter changes highlight a shift from outright bullishness to a more tempered mildly bullish stance. The interplay of weekly bullish momentum indicators with monthly mildly bearish signals suggests a stock in transition, requiring close monitoring by investors.
While the downgrade to a Hold Mojo Grade reflects caution, the company’s strong long-term returns and sector positioning provide a foundation for potential recovery. Investors should consider integrating these technical insights with broader market and fundamental analysis to optimise portfolio decisions in the evolving market landscape.
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