HCLTECH - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📈 HCLTECH is trending upward with bullish momentum, though volume and resistance near the 200-DMA warrant caution.

📈 Technical Analysis

• 📈 Chart Pattern: The stock is forming a bullish continuation pattern, recovering from recent lows and approaching resistance near 1,565 ₹.
• 📈 Moving Averages: Price is above the 50-DMA (1,492 ₹) but slightly below the 200-DMA (1,565 ₹), indicating short-term strength with medium-term resistance.
• 📈 RSI (62.6): Bullish zone, suggesting upward momentum without being overbought.
• 📈 MACD (23.9): Positive crossover, reinforcing bullish sentiment.
• 📈 Bollinger Bands: Price near upper band, indicating breakout potential with moderate volatility.
• 📉 Volume Trend: Current volume (18.12L) is below 1-week average (22.11L), showing mild divergence in participation.

📍 Entry & Exit Zones

• ✅ Entry Zone: 1,490 ₹ – 1,520 ₹ (near 50-DMA and support zone)
• 🚪 Exit Zone: 1,590 ₹ – 1,620 ₹ (resistance near 200-DMA and prior swing highs)

📊 Trend Status

• 📈 Current Trend: Trending upward
• ⚠️ Bias: Bullish with caution due to volume and 200-DMA resistance

✅ Positive

• Strong ROCE (43.1%) and ROE (32.6%) reflect excellent capital efficiency.
• Price above 50-DMA and MACD crossover support bullish sentiment.
• DII holding increased by 1.63%, indicating strong domestic institutional confidence.
• Attractive dividend yield of 3.46% enhances long-term appeal.

⚠️ Limitation

• Price still below 200-DMA — medium-term resistance remains.
• Volume below average — rally may lack conviction.
• High PEG ratio (8.57) suggests valuation concerns relative to growth.

📉 Company Negative News

• FII holding dropped by 1.92%, indicating reduced foreign investor confidence.
• Quarterly PAT declined from 2,888 Cr. to 2,657 Cr. — a 17.4% drop.

📈 Company Positive News

• EPS of 44.6 ₹ and P/E of 34.4 are reasonable compared to industry PE (29.6).
• Strong fundamentals and low debt-to-equity ratio (0.03) support long-term stability.

🏭 Industry

• IT services sector remains resilient with global demand for digital transformation and cloud solutions.
• HCLTECH trades slightly above industry PE (34.4 vs 29.6), reflecting premium valuation and strong positioning.

🧾 Conclusion

• HCLTECH is trending upward with bullish technical indicators and strong fundamentals.
• Short-term traders may consider entries near 1,500 ₹ and exits near 1,620 ₹.
• Long-term investors should monitor volume strength and earnings consistency before increasing exposure.

Sources: TopStockResearch Chart

TSR

, Investing.com Technicals

Investing.com India

, Trendlyne Technicals

Trendlyne