Technical Trend Evolution and Price Movement
As of 2 January 2026, Tech Mahindra’s share price closed at ₹1,607.05, marking a 0.98% increase from the previous close of ₹1,591.40. The stock traded within a range of ₹1,587.40 to ₹1,613.00 during the day, inching closer to its 52-week high of ₹1,736.35. This price action reflects a strengthening momentum after a period of consolidation, supported by a bullish daily moving average alignment.
The technical trend has upgraded from mildly bullish to bullish, reflecting improved price momentum and investor confidence. This is particularly significant given the stock’s recent relative underperformance against the Sensex over the one-week horizon, where Tech Mahindra declined by 1.47% compared to the Sensex’s 0.26% drop. However, over the one-month period, the stock outperformed with a 5.14% gain versus a 0.53% decline in the Sensex, signalling a potential turnaround in momentum.
MACD and Momentum Oscillators
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD is bullish, indicating that the short-term momentum is gaining strength relative to the longer-term trend. This suggests that buyers are increasingly dominant in the near term. Conversely, the monthly MACD remains mildly bearish, reflecting some caution among longer-term investors and the possibility of resistance near the upper price levels.
Complementing the MACD, the Know Sure Thing (KST) oscillator also shows a bullish weekly reading but remains mildly bearish on the monthly scale. This divergence between short- and long-term momentum indicators highlights a transitional phase where the stock is gaining traction but has yet to fully convince longer-term trend followers.
Relative Strength Index and Bollinger Bands
The Relative Strength Index (RSI) currently shows no definitive signal on both weekly and monthly charts, hovering in a neutral zone. This suggests that the stock is neither overbought nor oversold, providing room for further upward movement without immediate risk of a technical pullback.
Bollinger Bands, however, provide a more optimistic outlook. The weekly Bollinger Bands are mildly bullish, indicating that price volatility is expanding upwards, often a precursor to sustained rallies. On the monthly timeframe, the bands are bullish, reinforcing the potential for a longer-term uptrend as the stock price approaches the upper band boundary.
Moving Averages and Volume Trends
Daily moving averages have turned bullish, with the stock price trading above key averages such as the 50-day and 200-day moving averages. This alignment is a classic technical confirmation of an upward trend and tends to attract momentum traders and institutional investors alike.
On the volume front, the On-Balance Volume (OBV) indicator is bullish on a weekly basis, signalling that buying volume is outpacing selling volume. This volume confirmation supports the price gains and suggests that the rally is backed by genuine investor interest rather than speculative spikes. The monthly OBV, however, remains neutral, indicating that longer-term volume trends have yet to decisively confirm the bullish momentum.
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Dow Theory and Broader Market Context
According to Dow Theory assessments, the weekly trend is mildly bullish, indicating that the stock is in the early stages of a confirmed upward phase. The monthly Dow Theory reading shows no clear trend, reflecting the mixed signals from other monthly indicators and the need for further confirmation before a sustained long-term rally can be declared.
Comparing Tech Mahindra’s returns with the Sensex over various timeframes reveals a complex performance picture. While the stock has underperformed the Sensex over the past year with a -5.69% return versus the Sensex’s 8.51%, it has outpaced the benchmark over the medium to long term. Over three years, Tech Mahindra has delivered a 58.10% return compared to the Sensex’s 40.02%, and over ten years, it has gained 209.23% against the Sensex’s 225.63%. This suggests that while short-term volatility persists, the company has demonstrated solid growth over extended periods.
Mojo Score Upgrade and Market Capitalisation Insights
Reflecting these technical improvements, Tech Mahindra’s Mojo Score has increased to 72.0, earning a Buy grade as of 1 January 2026, upgraded from a previous Hold rating. This upgrade signals enhanced confidence in the stock’s near-term prospects based on a comprehensive analysis of technical and fundamental factors. The company holds a Market Cap Grade of 1, indicating a large-cap status with significant market presence and liquidity.
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Investor Takeaway and Outlook
Tech Mahindra’s recent technical developments suggest a positive shift in momentum, particularly on shorter timeframes. The bullish weekly MACD, daily moving averages, and supportive volume trends provide a strong foundation for potential price appreciation in the near term. However, the mixed signals on monthly indicators such as MACD, KST, and OBV counsel caution, indicating that longer-term investors should monitor for confirmation before committing heavily.
The neutral RSI readings imply that the stock is not currently overextended, allowing room for further gains without immediate risk of a sharp correction. The proximity to the 52-week high of ₹1,736.35 also suggests that resistance levels will be closely watched by market participants.
Given the upgrade in the Mojo Grade to Buy and the solid medium- to long-term return profile relative to the Sensex, Tech Mahindra remains an attractive proposition for investors seeking exposure to the Computers - Software & Consulting sector. The company’s technical momentum, combined with its fundamental strengths, positions it well for potential upside as market conditions evolve.
Conclusion
In summary, Tech Mahindra Ltd. is exhibiting a clear shift towards bullish technical momentum, supported by key indicators and an upgraded Mojo Score. While short-term signals are encouraging, the mixed monthly trends advise a measured approach. Investors should consider these technical insights alongside broader market factors and company fundamentals when evaluating their positions in this large-cap software and consulting stock.
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