MPHASIS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.6
| Stock Code | MPHASIS | Market Cap | 40,422 Cr. | Current Price | 2,118 ₹ | High / Low | 3,037 ₹ |
| Stock P/E | 28.4 | Book Value | 307 ₹ | Dividend Yield | 2.69 % | ROCE | 33.7 % |
| ROE | 25.2 % | Face Value | 10.0 ₹ | DMA 50 | 2,446 ₹ | DMA 200 | 2,658 ₹ |
| Chg in FII Hold | 1.27 % | Chg in DII Hold | 8.18 % | PAT Qtr | 364 Cr. | PAT Prev Qtr | 393 Cr. |
| RSI | 27.7 | MACD | -121 | Volume | 8,42,701 | Avg Vol 1Wk | 5,11,898 |
| Low price | 2,025 ₹ | High price | 3,037 ₹ | PEG Ratio | 3.99 | Debt to equity | 0.09 |
| 52w Index | 9.19 % | Qtr Profit Var | -3.19 % | EPS | 73.6 ₹ | Industry PE | 20.9 |
📉 Chart & Trend: MPHASIS is trading at ₹2,118, well below its 50 DMA (₹2,446) and 200 DMA (₹2,658), confirming a bearish setup. RSI at 27.7 indicates oversold conditions, while MACD at -121 signals strong negative momentum. Bollinger Bands show price near the lower band, suggesting weakness but potential for a short-term rebound.
📊 Volume: Current volume (8.42 L) is higher than the 1-week average (5.11 L), reflecting strong selling pressure but also possible accumulation at lower levels.
📈 Momentum Signals: Short-term momentum is weak. Support levels are seen at ₹2,025 (recent low) and strong support at ₹2,000. Resistance lies at ₹2,446 (50 DMA) and ₹2,658 (200 DMA).
🎯 Entry Zone: ₹2,025–₹2,050 (risk-managed entry zone).
🚪 Exit Zone: ₹2,440–₹2,460 (near 50 DMA resistance).
🔎 Trend Status: Bearish reversal. The stock is reversing from highs and struggling to regain momentum. Sustained recovery requires price stability above ₹2,658.
Positive
- Strong ROCE (33.7%) and ROE (25.2%) show excellent capital efficiency.
- Low debt-to-equity ratio (0.09) ensures financial stability.
- Dividend yield of 2.69% adds investor appeal.
- FII holding increased by 1.27% and DII holding by 8.18%, showing institutional confidence.
Limitation
- High P/E (28.4) compared to industry average (20.9) indicates relative overvaluation.
- PEG ratio of 3.99 suggests expensive growth prospects.
- Price trading below both 50 DMA and 200 DMA reflects technical weakness.
Company Negative News
- PAT declined from ₹393 Cr to ₹364 Cr, showing earnings pressure.
- Quarterly profit variation at -3.19% indicates slowing growth momentum.
Company Positive News
- EPS at ₹73.6 remains strong, reflecting consistent earnings power.
- Institutional buying (FII and DII) supports long-term confidence in the company.
Industry
- Industry PE at 20.9 highlights sector valuations are lower than the company’s, suggesting relative overvaluation.
- IT services sector is cyclical, sensitive to global demand, outsourcing trends, and currency fluctuations.
Conclusion
⚠️ MPHASIS is in a bearish reversal phase, trading below key moving averages with oversold RSI and negative MACD. While fundamentals show strong efficiency, low debt, and institutional support, stretched valuations and declining profits limit upside. Short-term traders may consider entries near ₹2,025–₹2,050 with exits around ₹2,440–₹2,460, while long-term investors should wait for earnings improvement and price stability above ₹2,658 before fresh accumulation.
Would you like me to also prepare a sector overlay with peer benchmarking for IT services stocks? That would highlight whether MPHASIS is relatively stronger or weaker compared to Infosys, TCS, and other peers.