Mphasis: SEBI RA Deepak Pal Flags ₹2,800 As Key Entry Zone Ahead Of Q1 Earnings

Mphasis has been in a steady uptrend on the daily chart, consistently trading above its 50-day and 100-day exponential moving averages (EMAs), signaling a broadly bullish structure, according to SEBI-registered analyst Deepak Pal.

The stock’s recent dip appears to be mild profit booking ahead of its Q1 results, which are due on July 24.

Mphasis shares are just below the short-term support near the 14-day EMA between ₹2,830 and ₹2,850, Pal said. Despite the pullback, the Parabolic SAR remains below the price, indicating that the uptrend is still intact.

At the time of writing, the stock was trading marginally lower at ₹2,795.30.

Momentum indicators show a mixed setup; the moving average convergence/divergence (MACD) is in positive territory but starting to flatten, while the relative strength index (RSI) at 55.72 suggests moderate strength without being in the overbought zone.

With earnings due on July 24, volatility is likely to rise, Pal said. A strong Q1 could reignite bullish momentum, potentially pushing the stock toward the ₹3,000 - ₹3,050 zone. On the downside, a dip toward ₹2,800 could offer a favourable risk-reward entry.

Pal recommends a stop-loss just below the key support at ₹2,725.

Mphasis, backed by Blackstone, is an IT services firm with operations in cloud, AI, and digital transformation, serving BFSI, logistics, and healthcare sectors.

Fundamentally, the company makes over ₹14,000 crore in annual revenue, ₹1,400 crore in net profit, 17 - 18% margins, a 19% ROE, and has a virtually debt-free balance sheet. The stock trades at a moderate 30x P/E, the analyst noted.

Despite macroeconomic headwinds, Mphasis’s strong client base, consistent dividend payments, and digital-first strategy support its long-term growth.

The stock has experienced buying momentum over the past three months, gaining more than 17%. Year-to-date, it has declined 2.2%.

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