HCLTECH - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | HCLTECH | Market Cap | 3,67,892 Cr. | Current Price | 1,356 ₹ | High / Low | 1,780 ₹ |
| Stock P/E | 30.0 | Book Value | 115 ₹ | Dividend Yield | 3.98 % | ROCE | 43.1 % |
| ROE | 32.6 % | Face Value | 2.00 ₹ | DMA 50 | 1,478 ₹ | DMA 200 | 1,558 ₹ |
| Chg in FII Hold | -0.43 % | Chg in DII Hold | 0.57 % | PAT Qtr | 3,682 Cr. | PAT Prev Qtr | 2,657 Cr. |
| RSI | 37.0 | MACD | -54.2 | Volume | 26,74,372 | Avg Vol 1Wk | 27,46,688 |
| Low price | 1,276 ₹ | High price | 1,780 ₹ | PEG Ratio | 7.46 | Debt to equity | 0.03 |
| 52w Index | 15.8 % | Qtr Profit Var | 4.42 % | EPS | 42.6 ₹ | Industry PE | 20.9 |
📊 Chart & Trend Analysis: HCLTECH is currently trading at ₹1,356, below both its 50 DMA (₹1,478) and 200 DMA (₹1,558), indicating weakness and a bearish undertone. RSI at 37 suggests the stock is approaching oversold territory, while MACD at -54.2 confirms negative momentum. Bollinger Bands show price leaning toward the lower band, reflecting selling pressure. Volume is slightly below average, signaling reduced participation.
📈 Momentum Signals: Short-term momentum is weak, but oversold RSI hints at a possible technical rebound. MACD divergence is negative, confirming bearish sentiment. Consolidation may occur near support zones.
💹 Entry & Exit Zones:
- Optimal Entry: ₹1,300–₹1,320 (near support, oversold RSI)
- Stop-Loss: ₹1,276 (recent low)
- Exit Zone: ₹1,450–₹1,480 (near 50 DMA resistance)
- Major Resistance: ₹1,558 (200 DMA)
📉 Trend Status: The stock is consolidating with bearish bias, but oversold RSI suggests potential short-term reversal if support holds.
Positive
- Strong ROCE (43.1%) and ROE (32.6%) indicate efficient capital use.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- Dividend yield of 3.98% provides steady income for investors.
- Quarterly PAT improved to ₹3,682 Cr. from ₹2,657 Cr.
Limitation
- Stock P/E (30.0) is significantly higher than industry average (20.9), suggesting overvaluation.
- PEG ratio of 7.46 indicates expensive growth prospects.
- Price trading below both 50 DMA and 200 DMA shows weak technical strength.
Company Negative News
- Decline in FII holding (-0.43%) reflects reduced foreign investor confidence.
- Stock has corrected sharply from its 52-week high of ₹1,780.
Company Positive News
- DII holdings increased (+0.57%), showing domestic institutional support.
- Quarterly profit growth of 4.42% indicates operational improvement.
Industry
- IT sector faces global macro challenges but remains resilient with digital transformation demand.
- Industry PE at 20.9 highlights relatively cheaper peers compared to HCLTECH.
Conclusion
⚖️ HCLTECH is technically weak but fundamentally strong. Current price action suggests consolidation with bearish bias. Traders may consider accumulating near ₹1,300–₹1,320 with strict stop-loss at ₹1,276, targeting ₹1,450–₹1,480 in the short term. Long-term investors should wait for better valuations closer to industry PE levels.
Would you like me to also prepare a basket overlay with peer benchmarking (Infosys, TCS, Wipro) so you can compare sector rotation opportunities alongside HCLTECH?