HCLTECH - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | HCLTECH | Market Cap | 4,52,458 Cr. | Current Price | 1,666 ₹ | High / Low | 1,752 ₹ |
| Stock P/E | 36.9 | Book Value | 115 ₹ | Dividend Yield | 3.24 % | ROCE | 43.1 % |
| ROE | 32.6 % | Face Value | 2.00 ₹ | DMA 50 | 1,651 ₹ | DMA 200 | 1,604 ₹ |
| Chg in FII Hold | -0.43 % | Chg in DII Hold | 0.57 % | PAT Qtr | 3,682 Cr. | PAT Prev Qtr | 2,657 Cr. |
| RSI | 47.4 | MACD | 15.6 | Volume | 19,36,318 | Avg Vol 1Wk | 28,46,884 |
| Low price | 1,303 ₹ | High price | 1,752 ₹ | PEG Ratio | 9.17 | Debt to equity | 0.03 |
| 52w Index | 80.8 % | Qtr Profit Var | 4.42 % | EPS | 42.6 ₹ | Industry PE | 23.9 |
📊 Chart & Trend Analysis: HCLTECH is trading at ₹1,666, comfortably above its 50 DMA (₹1,651) and 200 DMA (₹1,604), showing medium-term strength. RSI at 47.4 indicates neutral momentum, neither overbought nor oversold. MACD at 15.6 reflects a mild bullish crossover, but volume (19.3L) is below the weekly average (28.4L), suggesting limited participation. Bollinger Bands show price near the mid-range, pointing to consolidation.
📈 Momentum Signals: Short-term momentum is mildly positive, supported by MACD crossover, but weaker volume caps breakout potential. RSI neutrality signals sideways consolidation rather than strong trend continuation.
🎯 Entry Zone: ₹1,640 – ₹1,655 (near 50 DMA support)
🚪 Exit Zone: ₹1,720 – ₹1,740 (near resistance and recent high)
🔎 Trend Status: Consolidating with mild bullish bias. A breakout above ₹1,752 could trigger a fresh uptrend, while sustained trade below ₹1,640 may signal reversal.
Positive
- High ROCE (43.1%) and ROE (32.6%) reflect strong capital efficiency.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- Dividend yield of 3.24% adds investor appeal.
- Quarterly PAT growth from ₹2,657 Cr. to ₹3,682 Cr. highlights earnings momentum.
Limitation
- Elevated P/E ratio (36.9) compared to industry average (23.9) suggests overvaluation.
- PEG ratio of 9.17 indicates expensive growth prospects.
- Below-average trading volume reduces conviction in breakout moves.
Company Negative News
- Decline in FII holding (-0.43%) signals reduced foreign investor confidence.
Company Positive News
- Increase in DII holding (+0.57%) shows domestic institutional support.
- Quarterly profit variation of 4.42% indicates steady growth.
Industry
- IT sector remains resilient with ongoing demand for digital transformation.
- Industry P/E at 23.9 highlights moderate sector valuation compared to HCLTECH’s premium.
Conclusion
⚖️ HCLTECH is consolidating with a mild bullish bias. Entry near ₹1,640–₹1,655 offers favorable risk-reward, while exits near ₹1,720–₹1,740 are optimal. Strong fundamentals support long-term holding, but high valuation and weak volume caution against aggressive short-term positions.
Would you like me to extend this into a peer benchmarking overlay (Infosys, TCS, Wipro) so you can compare HCLTECH’s relative strength within the IT basket?