Shares of HCL Technologies extended their fall for the third time in a row. The stock was trading 0.26 per cent lower at Rs 1,081. On the BSE, around 36,000 shares changed hands, which is half compared to the two-week average of 72,000 shares. Turnover on the counter was at Rs 3.89 crore, with a market cap of Rs 2,93, 401.47 crore. The scrip was trading 23.47 per cent higher than its 52 week low of Rs 875.65, hit on August 29 last year. It has dropped 10.13 per cent from its one-year high of Rs 1,203, touched on April 5, 2022.
The counter has 4.04 per cent on the year-to-date YTD basis. Kotak Institutional Equities has given a 'Buy' call for HCL Tech while pegging it at a fair value of 1,280 over the next 12 months.
Ganesh Dongre, Senior Manager Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said that the stock has seen a consolidation from the last two-three months to Rs 1,010 -- 1,150 on the daily charts. The stock price is above its 200 DMA price of Rs 1,010, which is bullish in nature. One can buy this stock on dip with the stop loss of Rs 1,010 for a target price of Rs 1,150. Ravi Singhal, CEO, GCL, said that the stock looks very weak on technical charts due to the fallout of banks in the US and Europe. There are concerns that banks could cut IT spending on digital infrastructure, which could affect domestic IT firms. The target price was lowered to 1,000 for HCL Tech. He advised traders to keep their stop loss at Rs 1,122.
AR Ramachandran from Tips 2 trades said that HCL Tech looks flat to bearish on the daily charts with strong resistance at Rs 1,110. A daily close below its support of Rs 1,069 could lead to Rs 1,030 in the near term. The stock traded higher than the 200 day moving averages but was lower than the 5 day, 20 day, 50 and 100 day moving averages. The RSI came at 43.20, the counter's 14 day relative strength index. A level below 30 is considered oversold, while a value above 70 is considered overbought. The company's stock has a price-to- equity P E ratio of 25.32.
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The scrip has an average target price of Rs 1,177. The Trendlyne data showed a potential upside of 8.84 per cent. It has a one-year beta of 0.97, indicating average volatility on the counter.
HCL Tech reported a 19 per cent increase in the consolidated net income to Rs 4,096 crore for the third quarter ended December 31, 2022, against a net income of Rs 3,442 crore in the year-ago period.
The Indian equity benchmarks extended their gains for the second straight session, led by gains in pharma, state-owned lenders, automobile, consumer goods and financials.