Mphasis Limited Share Price was trading 2.3 percent higher on Tuesday and the stock has touched intraday high of Rs 3201. The stock touched 52-week high in today's session and we will review technical charts for the counter, along with Fibonacci Retracement Levels.

Mphasis Limited (NSE: MPHASIS) has demonstrated its prowess in the IT services sector with a robust financial performance and a clear growth trajectory. The stock has reached its 52-week high of ₹3,201.90, a significant milestone reflecting investor confidence. With a market capitalization of ₹601.44 billion and a P/E ratio of 37.92, Mphasis continues to position itself as a key player in the IT services industry. Let us have a look at its recent performance, technical analysis, and competitive positioning to offer actionable insights for investors.

Stock Metrics and Performance

Mphasis Limited has exhibited resilience and growth amid volatile market conditions. Below is a snapshot of its key metrics:

Stock Snapshot

Recent Analyst Recommendations

ICICI Securities, in a recent report dated December 1, 2024, maintained a "BUY" rating with a target price of ₹3,350, citing strong deal wins and a robust pipeline. Motilal Oswal, in its November 2024 update, rated the stock as "HOLD" with a target price of ₹3,200, cautioning about margin pressures despite healthy revenue growth.

Technical Analysis Insights

1. Candlestick Patterns
The daily chart for Mphasis Limited reveals a Bullish Marubozu, indicating strong buying interest throughout the trading session. This pattern suggests the potential for further upside in the short term.

2. Fibonacci Retracement Levels
Using the 52-week high of ₹3,201.90 and the 52-week low of ₹2,187.00, the Fibonacci retracement levels are:

38.2% Retracement: ₹2,731.48
50% Retracement: ₹2,694.45
61.8% Retracement: ₹2,657.42
The stock is currently trading near its 52-week high, signaling strong bullish momentum. A retracement toward the 38.2% level could provide a buying opportunity.

3. Support and Resistance Levels
Immediate Support: ₹3,150
Key Resistance: ₹3,250
Breakout Target: ₹3,400
A sustained move above ₹3,250 could lead to further gains, with ₹3,400 as the next target.

Competitive Analysis

Mphasis faces stiff competition from other major IT services players, such as Tata Consultancy Services (TCS) and Infosys.

Tata Consultancy Services (TCS)
TCS, the largest IT services company in India, boasts a market capitalization of over ₹13 trillion. Its diversified portfolio and global reach make it a formidable competitor. However, its high valuation poses challenges for investors seeking short-term gains.

Infosys
Infosys, with a market cap of ₹7.50 trillion, is another key competitor. It has consistently delivered robust revenue growth but faces challenges in maintaining margins amid a competitive pricing environment.

Actionable Insights for Investors

1. Short-Term Traders:
The Bullish Marubozu pattern suggests strong momentum. Traders could consider entering around ₹3,150 with a target of ₹3,250 and a stop loss at ₹3,100.

2. Long-Term Investors:
Mphasis' strong deal pipeline and consistent performance make it a compelling long-term bet. Investors could accumulate on dips, particularly near ₹2,700, based on Fibonacci retracement levels.

3. Risk Factors:
Investors should monitor margin pressures and global IT spending trends, which could impact Mphasis' revenue growth.