⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HCLTECH - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | HCLTECH | Market Cap | 3,25,898 Cr. | Current Price | 1,201 ₹ | High / Low | 1,780 ₹ |
| Stock P/E | 26.1 | Book Value | 95.4 ₹ | Dividend Yield | 4.50 % | ROCE | 53.9 % |
| ROE | 41.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,375 ₹ | DMA 200 | 1,504 ₹ |
| Chg in FII Hold | -0.70 % | Chg in DII Hold | 0.58 % | PAT Qtr | 4,833 Cr. | PAT Prev Qtr | 3,682 Cr. |
| RSI | 28.8 | MACD | -57.4 | Volume | 25,50,163 | Avg Vol 1Wk | 41,10,850 |
| Low price | 1,184 ₹ | High price | 1,780 ₹ | PEG Ratio | 7.46 | Debt to equity | 0.04 |
| 52w Index | 2.84 % | Qtr Profit Var | 58.7 % | EPS | 28.1 ₹ | Industry PE | 21.2 |
HCLTECH shows signs of being oversold with RSI at 28.8, which could trigger a short-term rebound. However, the negative MACD (-57.4) and price trading below both 50 DMA (1,375 ₹) and 200 DMA (1,504 ₹) indicate bearish momentum. The optimal entry price would be near 1,180–1,200 ₹, close to its support zone. If already holding, consider exiting around 1,350–1,400 ₹ where resistance from the 50 DMA may limit upside.
✅ Positive
- Strong ROCE (53.9%) and ROE (41%) highlight efficient capital use.
- Low debt-to-equity ratio (0.04) ensures financial stability.
- Dividend yield of 4.5% provides steady returns.
- Quarterly profit growth of 58.7% shows strong performance momentum.
⚠️ Limitation
- Stock P/E (26.1) is higher than industry average (21.2), suggesting overvaluation.
- PEG ratio of 7.46 indicates limited growth potential relative to price.
- Decline in FII holdings (-0.70%) reflects reduced foreign investor confidence.
- Trading volumes below weekly average, showing weak momentum.
📉 Company Negative News
- Reduced foreign institutional investor participation.
- Stock trading below key moving averages, signaling bearish sentiment.
📈 Company Positive News
- Quarterly profit surged from 3,682 Cr. to 4,833 Cr.
- Consistent dividend payout with attractive yield.
🏭 Industry
- IT sector remains resilient but faces global demand uncertainty.
- Industry P/E at 21.2 suggests moderate valuation compared to HCLTECH’s higher P/E.
🔎 Conclusion
HCLTECH offers a potential swing trade opportunity due to oversold conditions, with entry near 1,180–1,200 ₹. However, upside may be capped around 1,350–1,400 ₹. Strong fundamentals support long-term holding, but swing traders should remain cautious given weak momentum and valuation concerns.