HCLTECH - IntraDay Trade Analysis with Live Signals

Last Updated Time : 20 Dec 25, 07:02 am

IntraDay Trade Rating: 4.1

📊 Analysis: HCLTECH shows strong intraday potential. RSI at 58.2 and positive MACD (24.3) indicate bullish momentum. Current price (1,642 ₹) is above both 50 DMA (1,597 ₹) and 200 DMA (1,581 ₹), reflecting technical strength. Volume (20.0L) is above average weekly volume (18.1L), confirming active participation. Fundamentals are robust with ROCE 43.1%, ROE 32.6%, and low debt-to-equity (0.03). However, quarterly PAT declined (-17.4%), and valuation is stretched with P/E at 36.8 compared to industry PE of 26.4.

💹 Optimal Buy Price: 1,635–1,645 ₹ (near DMA support).

🎯 Profit-Taking Exit Levels: 1,670–1,690 ₹ (short-term resistance zone).

🛡️ Stop-Loss / Loss Protection: 1,620 ₹ (below intraday support).

⏱️ If Already Holding: Exit intraday if price fails to sustain above 1,670 ₹ with volume confirmation, or if RSI dips below 56 with weakening MACD. Hold only if momentum continues above 1,690 ₹, targeting 1,710–1,725 ₹.

Positive

• ✅ Strong ROCE (43.1%) and ROE (32.6%) reflect excellent capital efficiency.
• ✅ Low debt-to-equity (0.03) ensures financial stability.
• ✅ Dividend yield (3.25%) adds shareholder value.
• ✅ Price above 50 DMA and 200 DMA indicates technical strength.
• ✅ DII holding increased (+1.63%), showing domestic investor confidence.

Limitation

• ⚠️ Quarterly PAT decline (-17.4%) shows earnings pressure.
• ⚠️ High P/E (36.8) compared to industry PE (26.4) indicates overvaluation.
• ⚠️ FII holding decreased (-1.92%), showing foreign investor caution.
• ⚠️ PEG ratio (9.15) suggests limited growth visibility.

Company Negative News

• ❌ No major external negative news reported, but profit decline and valuation risks are concerns.

Company Positive News

• 🌟 Strong fundamentals with high ROCE and ROE.
• 🌟 DII inflows support investor confidence.

Industry

• 🏭 Industry PE at 26.4 is lower than HCLTECH’s PE (36.8), suggesting premium valuation.
• 🏭 IT services sector outlook remains stable with global demand drivers.

Conclusion

📌 HCLTECH is a good candidate for intraday trading with bullish momentum indicators, strong fundamentals, and technical support above DMA levels. While valuation is stretched and quarterly profit decline is a concern, strong ROCE/ROE and volume participation favor short-term trades. Suitable for cautious intraday traders with tight stop-loss discipline, aiming for quick scalps near resistance zones.

Would you like me to extend this into a peer benchmarking overlay against other IT service majors (like Infosys, TCS, Wipro) to compare intraday strength and sector rotation opportunities?