MPHASIS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | MPHASIS | Market Cap | 52,757 Cr. | Current Price | 2,770 ₹ | High / Low | 3,037 ₹ |
| Stock P/E | 37.0 | Book Value | 307 ₹ | Dividend Yield | 2.06 % | ROCE | 33.7 % |
| ROE | 25.2 % | Face Value | 10.0 ₹ | DMA 50 | 2,822 ₹ | DMA 200 | 2,773 ₹ |
| Chg in FII Hold | 1.27 % | Chg in DII Hold | 8.18 % | PAT Qtr | 364 Cr. | PAT Prev Qtr | 393 Cr. |
| RSI | 44.7 | MACD | -17.2 | Volume | 1,68,239 | Avg Vol 1Wk | 4,22,831 |
| Low price | 2,025 ₹ | High price | 3,037 ₹ | PEG Ratio | 5.06 | Debt to equity | 0.09 |
| 52w Index | 73.6 % | Qtr Profit Var | -3.19 % | EPS | 73.6 ₹ | Industry PE | 23.9 |
📊 Chart & Trend Analysis:
MPHASIS is trading at ₹2,770, slightly below its 50 DMA (₹2,822) and near its 200 DMA (₹2,773), indicating mild weakness and sideways consolidation. RSI at 44.7 suggests neutral momentum, not yet oversold. MACD at -17.2 shows bearish crossover, signaling short-term weakness. Bollinger Bands place price near the mid-to-lower range, reflecting consolidation. Current volume (1.68 lakh) is significantly below the 1-week average (4.22 lakh), showing reduced participation and lack of strong buying pressure.
📈 Momentum Signals:
- RSI neutral, indicating consolidation with mild bearish bias.
- MACD negative crossover confirms short-term weakness.
- Price hovering around 200 DMA suggests indecision.
- Low volume indicates lack of conviction in current moves.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹2,720 – ₹2,750 (near support at 200 DMA).
- Exit Zone: ₹2,850 – ₹2,900 (resistance at 50 DMA and recent highs).
- Stop Loss: ₹2,680 (below key support zone).
📌 Trend Status: The stock is consolidating with mild bearish bias, holding near long-term support but struggling to break above resistance levels.
Positive
- Strong ROCE (33.7%) and ROE (25.2%) highlight efficient capital use.
- Low debt-to-equity ratio (0.09) ensures financial stability.
- Dividend yield of 2.06% provides steady shareholder returns.
- EPS of ₹73.6 reflects strong earnings base.
Limitation
- High P/E (37.0) compared to industry average (23.9) suggests overvaluation.
- PEG ratio of 5.06 indicates expensive growth prospects.
- Quarterly PAT declined from ₹393 Cr. to ₹364 Cr., showing earnings pressure.
Company Negative News
- Quarterly profit variation (-3.19%) reflects margin pressure.
- Volume weakness indicates lack of strong investor conviction.
Company Positive News
- FII holding increased (+1.27%), showing foreign investor confidence.
- DII holding surged (+8.18%), reflecting strong domestic institutional support.
- Consistent dividend payout supports investor sentiment.
Industry
- Industry P/E at 23.9 is lower, making peers relatively more attractive on valuation.
- IT services sector remains resilient but faces global demand fluctuations and margin pressures.
Conclusion
⚖️ MPHASIS is consolidating near its 200 DMA with mild bearish signals from MACD and low volume. While fundamentals remain strong with high ROE, low debt, and institutional support, valuations are stretched and earnings have softened. Short-term traders may consider entry near ₹2,720–₹2,750 with exits around ₹2,850–₹2,900, while long-term investors should wait for earnings stability and better valuation alignment with industry peers before fresh accumulation.