MPHASIS - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.0

📈 Chart Patterns & Trend: MPHASIS is trading at ₹2,888, above both its 50 DMA (₹2,824) and 200 DMA (₹2,755). This indicates a bullish uptrend with strong support from moving averages, though the stock is facing resistance near its recent high of ₹3,197.

📊 Moving Averages: Price above both short- and long-term averages confirms bullish sentiment. Key support lies near ₹2,820 (50 DMA) and ₹2,750 (200 DMA), while resistance is around ₹3,150–₹3,200.

📉 RSI: At 56.0, RSI is in the bullish zone but not overbought, suggesting room for further upside.

📈 MACD: Positive MACD (26.3) signals strong bullish momentum, supporting continuation of the uptrend.

📉 Bollinger Bands: Price is near the upper band, indicating short-term resistance around ₹3,150–₹3,200. A breakout above this level could trigger fresh highs.

📊 Volume Trends: Current volume (4.58L) is significantly higher than the weekly average (2.92L), showing strong buying interest and confirming bullish sentiment.

🎯 Entry Zone: ₹2,820–₹2,860 (near support)

🚪 Exit Zone: ₹3,150–₹3,200 (near resistance/high)

Positive

• Strong ROCE (33.7%) and ROE (25.2%) reflect excellent efficiency and profitability.
• Debt-to-equity ratio of 0.09 indicates low leverage risk.
• DII holding increased (+0.57%), showing domestic institutional support.
• Quarterly PAT improved from ₹298 Cr. to ₹393 Cr. (+5.63%).
• Dividend yield of 2.00% provides steady income for investors.

Limitation

• High P/E (38.3) compared to industry PE (26.4) suggests premium valuation.
• PEG ratio of 5.24 highlights expensive valuation relative to growth.
• FII holding decreased (-0.47%), showing reduced foreign investor confidence.

Company Negative News

• High valuation multiples raise concerns about sustainability of current price levels.
• Reduced foreign institutional participation adds pressure on sentiment.

Company Positive News

• Strong quarterly profit growth supports earnings momentum.
• Domestic institutional investors increased stake, showing local confidence.
• Debt-light balance sheet supports long-term stability.

Industry

• Industry PE at 26.4 is lower than MPHASIS’s PE (38.3), suggesting premium valuation.
• IT services sector benefits from digital transformation, outsourcing demand, and global technology adoption.

Conclusion

📌 MPHASIS is in a bullish uptrend, trading above key moving averages with positive MACD and supportive RSI. Entry near ₹2,820–₹2,860 offers favorable risk-reward, while resistance at ₹3,150–₹3,200 provides exit targets. Strong fundamentals and profitability support long-term growth, though high valuation and reduced foreign participation warrant cautious optimism in the near term.