HCLTECH - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.1

📊 Chart Patterns: HCLTECH is trading above both its 50 DMA (1,597 ₹) and 200 DMA (1,581 ₹), reflecting a bullish structure. The price is mid-range between its 52-week low (1,303 ₹) and high (2,012 ₹), suggesting potential for further upside but resistance near upper levels.

📈 Moving Averages:

- 50 DMA: 1,597 ₹ (support)

- 200 DMA: 1,581 ₹ (major support)

The stock is comfortably above both averages, confirming an uptrend.

📉 RSI: 58.2 → Neutral to bullish, not overbought, leaving room for further gains.

📈 MACD: 24.3 → Positive crossover, confirming bullish momentum.

📊 Bollinger Bands: Price near upper band, showing strong buying interest but risk of short-term pullback.

📊 Volume Trends: Current volume (20.0 lakh) is higher than 1-week average (18.1 lakh), indicating strong participation and momentum support.

🎯 Momentum Signals:

- Short-term bias: Bullish with strong momentum

- Entry Zone: 1,600–1,630 ₹ (near DMA support)

- Exit Zone: 1,700–1,750 ₹ (resistance zone)

- Breakout potential above 1,750 ₹ could target 1,850–1,900 ₹.

📌 Trend Status: Trending upward with bullish signals. Consolidation possible near resistance, but breakout potential remains strong.

Positive

• Strong ROCE (43.1%) and ROE (32.6%) highlight excellent capital efficiency.
• Dividend yield of 3.25% provides attractive shareholder returns.
• Stock trading above both 50 DMA and 200 DMA confirms bullish structure.
• DII holdings increased (+1.63%), reflecting domestic institutional support.

Limitation

• Stock P/E (36.8) is higher than industry PE (26.4), suggesting premium valuation.
• Quarterly PAT declined (2,657 Cr vs 2,888 Cr), showing earnings pressure (-17.4%).
• PEG ratio (9.15) highlights valuation concerns relative to growth.
• FII holdings decreased (-1.92%), showing reduced foreign investor confidence.

Company Negative News

• Quarterly profit variation (-17.4%) indicates earnings slowdown.
• FII outflows (-1.92%) may weigh on sentiment.

Company Positive News

• DII inflows (+1.63%) reflect strong domestic institutional support.
• Strong fundamentals with high ROCE and ROE support long-term growth prospects.

Industry

• Industry PE: 26.4, lower than HCLTECH’s PE of 36.8, suggesting overvaluation.
• IT services sector remains resilient, supported by global digital transformation demand.

Conclusion

⚖️ HCLTECH is trending upward with bullish signals supported by MACD, RSI, and DMA levels. Entry near 1,600–1,630 ₹ offers accumulation opportunity, while resistance lies at 1,700–1,750 ₹. A breakout above 1,750 ₹ could extend momentum towards 1,850–1,900 ₹. Investors may accumulate on dips for long-term growth, while traders can ride the trend with stop-loss near 1,580 ₹.