HCLTECH - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

📈 Analysis: HCLTECH offers a solid swing trade opportunity with strong fundamentals and improving technical momentum. The current price of ₹1,529 is above the 50 DMA (₹1,495) but slightly below the 200 DMA (₹1,564), suggesting a potential breakout if momentum continues. RSI at 58.1 and MACD at 22.7 indicate bullish sentiment. The company boasts excellent ROCE (43.1%) and ROE (32.6%), a low debt-to-equity ratio (0.03), and a healthy dividend yield of 3.53%. While the PEG ratio of 8.51 signals overvaluation and PAT declined quarter-over-quarter, rising DII interest supports near-term upside.

🎯 Optimal Entry Price: ₹1,510–₹1,525 (on minor pullback near 50 DMA)

🚪 Exit Strategy (if holding): Consider exiting near ₹1,580–₹1,600 (approaching 200 DMA) or if RSI crosses 70 with MACD flattening.

✅ Positive

• 📈 Price above 50 DMA — short-term bullish momentum
• 📊 ROCE (43.1%) and ROE (32.6%) — excellent capital efficiency
• 💰 Dividend yield of 3.53% — strong income support
• 📉 Debt-to-equity ratio of 0.03 — minimal leverage
• 📈 DII holding increased (+1.63%) — domestic investor confidence

⚠️ Limitation

• 📉 Price still below 200 DMA — resistance ahead
• 📉 PEG ratio of 8.51 — expensive relative to growth
• 📉 FII holding decreased (-1.92%) — foreign investor caution
• 📉 PAT declined from ₹2,888 Cr. to ₹2,657 Cr. — earnings contraction
• 📉 Volume below weekly average — reduced trading interest

📰 Company Negative News

• No major public negative news, but earnings dip and FII outflow are cautionary signals

🌟 Company Positive News

• Strong return ratios and rising DII interest reflect operational strength and domestic support

🏭 Industry

• Industry P/E is 29.7 — HCLTECH trades at a slight premium, reflecting investor optimism
• IT services sector benefits from global digital transformation and enterprise tech demand

🧾 Conclusion

HCLTECH is a fundamentally strong and technically improving swing trade candidate. Entry near support offers a tactical opportunity. Exit near resistance or on RSI/MACD confirmation is advisable.

I can also help you compare HCLTECH’s setup with peers like Infosys or TCS to sharpen your swing strategy.