HCLTECH - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | HCLTECH | Market Cap | 3,25,396 Cr. | Current Price | 1,199 ₹ | High / Low | 1,780 ₹ |
| Stock P/E | 26.1 | Book Value | 95.4 ₹ | Dividend Yield | 4.50 % | ROCE | 53.9 % |
| ROE | 41.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,389 ₹ | DMA 200 | 1,510 ₹ |
| Chg in FII Hold | -0.70 % | Chg in DII Hold | 0.58 % | PAT Qtr | 4,833 Cr. | PAT Prev Qtr | 3,682 Cr. |
| RSI | 28.6 | MACD | -53.2 | Volume | 53,12,743 | Avg Vol 1Wk | 59,30,119 |
| Low price | 1,184 ₹ | High price | 1,780 ₹ | PEG Ratio | 7.45 | Debt to equity | 0.04 |
| 52w Index | 2.53 % | Qtr Profit Var | 58.7 % | EPS | 28.1 ₹ | Industry PE | 21.6 |
📉 Chart Patterns & Trend: HCLTECH is trading below both its 50 DMA (₹1,389) and 200 DMA (₹1,510), confirming a bearish structure. Current price (₹1,199) is hovering near strong support at ₹1,184, suggesting vulnerability to further downside unless a rebound occurs.
📊 Momentum Indicators: RSI at 28.6 indicates oversold conditions, but MACD at -53.2 shows strong bearish momentum. Bollinger Bands suggest price hugging the lower band, reinforcing weakness.
📈 Volume Trends: Current volume (53.1 lakh) is slightly below average weekly volume (59.3 lakh), reflecting muted participation and lack of aggressive buying.
🎯 Entry Zone: ₹1,185 – ₹1,200 (oversold RSI near support may trigger short-term bounce).
🚪 Exit Zone: ₹1,380 – ₹1,420 (near 50 DMA resistance; profit-taking zone if rebound materializes).
🔎 Status: The stock is consolidating near support but remains in a broader downtrend. Any rebound is corrective unless price sustains above 200 DMA.
Positive
- Strong ROE (41%) and ROCE (53.9%) highlight operational efficiency.
- Dividend yield of 4.5% provides steady investor returns.
- Quarterly PAT growth of 58.7% shows strong earnings momentum.
Limitation
- High PEG ratio (7.45) signals overvaluation relative to growth.
- P/E of 26.1 is above industry average (21.6), limiting valuation comfort.
- Technical weakness with price below both 50 & 200 DMA.
Company Negative News
- FII holdings decreased (-0.70%), showing reduced foreign investor confidence.
Company Positive News
- Strong quarterly PAT (₹4,833 Cr vs ₹3,682 Cr previous quarter).
- DII holdings increased (+0.58%), indicating domestic institutional support.
Industry
- IT sector facing margin pressures due to global demand slowdown.
- Industry PE at 21.6 reflects competitive valuation environment.
Conclusion
⚠️ HCLTECH is technically weak, trading below key moving averages with bearish momentum. Fundamentals remain strong, but valuations are stretched. Short-term traders may consider entry near ₹1,185 with exits around ₹1,380–₹1,420. Long-term investors should wait for confirmation of reversal above 200 DMA before fresh accumulation.
Would you like me to extend this into a peer benchmarking overlay (Infosys, TCS, Wipro) so you can see how HCLTECH stacks up against sector leaders on technical and valuation metrics?