Momentum Unlocked: Is Mphasis on the Verge of a Technical Rally?

Image Source: The Financial Express

Mphasis Ltd. has staged a notable technical comeback, crossing its 200-day exponential moving average (EMA)—a crucial indicator of long-term momentum. According to senior technical analyst Shitij Gandhi of SMC Global Securities, the stock has also broken out of an ascending triangle pattern, suggesting bullish potential in the near term.

Key Highlights:

- Mphasis reclaimed its 200-DMA, signaling the resumption of upward trend strength.
- A breakout from the ascending triangle suggests a price target range of ₹2,975–₹3,000 in the next 5–7 weeks.
- Gandhi recommends a buy-on-dips strategy, with strong support near ₹2,750.
- Boosted by AI-led business momentum, over 65% of Mphasis’ new deals are now AI-driven.
- Q4 results showed ₹3,717.5 crore in revenue and ₹446.5 crore in net profit, indicating healthy sequential growth of 4.4%.

Outlook:

With bullish chart patterns, favorable technical indicators, and sectoral tailwinds from AI and digital transformation, Mphasis looks poised for further upside. Analysts advise watching for volume confirmation and broader market sentiment. If momentum holds, the stock could challenge its 52-week high in the medium term.

Source: Economic Times, Financial Express, World News