HEXT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | HEXT | Market Cap | 26,419 Cr. | Current Price | 432 ₹ | High / Low | 900 ₹ |
| Stock P/E | 31.0 | Book Value | 53.3 ₹ | Dividend Yield | 2.66 % | ROCE | 33.4 % |
| ROE | 26.6 % | Face Value | 1.00 ₹ | DMA 50 | 558 ₹ | DMA 200 | 654 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | 0.18 % | PAT Qtr | 142 Cr. | PAT Prev Qtr | 271 Cr. |
| RSI | 32.6 | MACD | -50.1 | Volume | 32,45,692 | Avg Vol 1Wk | 16,35,909 |
| Low price | 400 ₹ | High price | 900 ₹ | PEG Ratio | 4.16 | Debt to equity | 0.13 |
| 52w Index | 6.35 % | Qtr Profit Var | -27.7 % | EPS | 12.8 ₹ | Industry PE | 20.9 |
📊 Chart & Trend Analysis: HEXT is trading at ₹432, well below both its 50 DMA (₹558) and 200 DMA (₹654), reflecting strong bearish pressure. RSI at 32.6 indicates oversold conditions, while MACD at -50.1 confirms negative momentum. Bollinger Bands show price hugging the lower band, suggesting continued selling pressure. Volume is higher than the weekly average, indicating strong participation in the downtrend.
📈 Momentum Signals: Short-term momentum is weak, with RSI oversold and MACD negative. A technical rebound may occur if support holds, but trend remains bearish. Consolidation is possible near current levels before reversal attempts.
💹 Entry & Exit Zones:
- Optimal Entry: ₹420–₹430 (near support, oversold RSI)
- Stop-Loss: ₹400 (recent low)
- Exit Zone: ₹550–₹560 (near 50 DMA resistance)
- Major Resistance: ₹654 (200 DMA)
📉 Trend Status: The stock is trending bearish, with oversold RSI hinting at a possible short-term rebound if support levels hold.
Positive
- Strong ROCE (33.4%) and ROE (26.6%) highlight efficient capital use.
- Dividend yield of 2.66% provides steady income for investors.
- Debt-to-equity ratio of 0.13 reflects low leverage.
Limitation
- Stock P/E of 31.0 is higher than industry average (20.9), suggesting overvaluation.
- PEG ratio of 4.16 indicates expensive growth prospects.
- Price trading far below both 50 DMA and 200 DMA shows weak technical strength.
Company Negative News
- Decline in FII holding (-0.16%) shows reduced foreign investor confidence.
- Quarterly PAT dropped to ₹142 Cr. from ₹271 Cr., showing earnings pressure.
- Quarterly profit variation of -27.7% highlights operational weakness.
Company Positive News
- DII holdings increased (+0.18%), showing domestic institutional support.
- EPS of ₹12.8 reflects profitability despite recent weakness.
Industry
- IT services industry benefits from digital transformation demand but faces margin pressures.
- Industry PE at 20.9 highlights relatively cheaper peers compared to HEXT’s P/E of 31.0.
Conclusion
⚖️ HEXT is technically weak, trending bearish with oversold RSI and strong selling pressure. Traders may consider entry near ₹420–₹430 with strict stop-loss at ₹400, targeting ₹550–₹560 in the short term. Long-term investors should be cautious due to high valuations and declining profitability, waiting for earnings recovery before accumulation.
Would you like me to extend this into a peer benchmarking overlay (e.g., Coforge, Mphasis, L&T Technology Services) so you can evaluate sector rotation opportunities alongside HEXT?