HCLTECH - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.9

HCLTECH shows long-term strength in its fundamentals, but technical indicators and current price action suggest caution for swing trading. It may be undergoing a deeper correction, and it’s best suited for bottom-fishing strategies rather than momentum-based entries.

🧾 Fundamental Snapshot

P/E: 23.5 vs Industry PE: 29.1 → Reasonably valued

PEG Ratio: 2.60 → Overvalued relative to growth potential

EPS: ₹62.6 | Book Value: ₹257 → Robust earnings and decent asset base

ROCE: 31.9% | ROE: 25.2% → Excellent capital efficiency

Dividend Yield: 3.67% → Attractive for short-term holders

Debt-to-Equity: 0.09 → Financially sound

📌 Fundamentals are solid, but valuation is stretched.

📉 Technical Signals

Current Price: ₹1,472

Trading below both DMA 50 & DMA 200 → Downtrend confirmed

RSI: 21.9 → Deeply oversold; potential reversal soon

MACD: -53.7 → Strong bearish momentum

Volume Surge: ~65L vs 44L avg → Heavy selling or capitulation

52W Index: 23.9% → Near yearly low of ₹1,303

📌 Stock has dropped significantly; signs of exhaustion building, but no reversal yet.

🎯 Swing Trade Strategy

This setup calls for a wait-and-watch approach, ideally catching a bounce from support zones with improving momentum indicators.

✅ Optimal Entry Price

Buy Zone: ₹1,440–₹1,475 Enter only if RSI moves above 28 and MACD starts flattening

🚪 Exit Plan

Target Price: ₹1,580–₹1,620 Before major resistance near DMA 50

Stop-Loss: ₹1,420 Below support and psychological ₹1,430 zone

👜 If Already Holding

→ Consider partial exit around ₹1,580 if price stabilizes → Use trailing stop near ₹1,460 if momentum improves → Exit fully if RSI drops below 20 or MACD continues to widen negatively

Want to explore stronger setups within IT or midcap tech stocks showing MACD turnarounds and RSI recoveries? I can shortlist a few based on your preferred risk appetite.

Edit in a page