MPHASIS - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 3.9

Technical Analysis Summary

• Trend: Consolidating near key moving averages
• Moving Averages: Price (₹2,760) is slightly below DMA 50 (₹2,797) and above DMA 200 (₹2,730), indicating neutral to mildly bullish setup
• RSI (46.8): Neutral zone, suggesting indecision in momentum
• MACD (10.1): Positive crossover, hinting at potential upward movement
• Bollinger Bands: Price near mid-band, indicating range-bound action with breakout potential
• Volume: Above average (13.8L vs 6.0L), showing strong participation and interest

Entry & Exit Zones

• Support: ₹2,730 – ₹2,740 (DMA 200 and recent base)
• Resistance: ₹2,800 – ₹2,850 (DMA 50 and prior swing highs)
• Optimal Entry: ₹2,740 – ₹2,760 on pullback with MACD support
• Exit Zone: ₹2,800 – ₹2,850 if price struggles near resistance

Positive

• Strong ROCE (33.7%) and ROE (25.2%) reflect operational efficiency
• EPS of ₹75.6 and consistent dividend yield of 2.06%
• Quarterly PAT growth from ₹298 Cr. to ₹393 Cr.
• Positive DII sentiment (+0.57%) and strong volume surge

Limitation

• Price trading below DMA 50, indicating short-term resistance
• High PEG ratio (4.99) suggests overvaluation relative to growth
• Decline in FII holding (-0.47%)
• RSI below 50, indicating lack of strong bullish momentum

Company Negative News

• Concerns over global IT spending slowdown and client budget constraints

Company Positive News

• Strong deal pipeline and focus on cloud and digital transformation services
• Improved profitability and healthy margins in recent quarters

Industry

• MPHASIS operates in the IT services and digital transformation sector
• Peers include Infosys, HCLTech, and LTI Mindtree

Conclusion

MPHASIS is currently consolidating near key technical levels with mixed momentum indicators. While fundamentals remain strong and volume is encouraging, short-term caution is advised due to resistance near the 50-DMA and high valuation metrics. Traders may consider entry near ₹2,740 with targets around ₹2,850, monitoring RSI and MACD for confirmation of breakout strength.