HCL Technologies Declines 1.23% Amid Mixed Signals and Options Activity

16 February 2026: Modest Gains Amid Broader Market Strength

HCL Technologies began the week on a positive note, closing at Rs.1,463.00, up 0.55% from the previous close. This gain was slightly below the Sensex’s 0.70% rise to 36,787.89. Trading volume was moderate at 55,454 shares. The stock’s intraday range was narrow, reflecting cautious optimism as the broader market showed strength. Despite this, technical indicators suggested a mild bearish momentum persisting from prior sessions.

17 February 2026: Technical Momentum Shifts to Sideways Amid Mixed Signals

On 17 February, HCL Technologies advanced further by 1.34% to Rs.1,482.65, outperforming the Sensex’s 0.32% gain. This day marked a notable shift in the stock’s technical momentum from mildly bearish to a sideways trend. Daily moving averages turned mildly bullish, although weekly and monthly indicators remained subdued. The Relative Strength Index (RSI) hovered in neutral territory, indicating indecision among investors. Volume surged to 181,932 shares, reflecting increased trading interest amid mixed market signals.

18 February 2026: Heavy Put Option Activity Signals Bearish Sentiment

The stock reversed course on 18 February, declining 1.06% to Rs.1,466.90 while the Sensex rose 0.43%. This day saw HCL Technologies emerge as the most active stock in put option trading, with 2,331 contracts traded at the Rs.1,440 strike price, generating a turnover of approximately ₹10.78 crores. The underlying stock price was Rs.1,465.40, placing the strike slightly out-of-the-money. This surge in put buying indicated growing bearish sentiment or hedging activity ahead of the 24 February expiry. Delivery volumes dropped sharply by 51.73% compared to the five-day average, signalling reduced conviction among buyers.

19 February 2026: Robust Call Option Activity and Open Interest Surge Amid Mixed Market Signals

On 19 February, HCL Technologies experienced a mixed session, closing at Rs.1,450.40, down 1.12%, while the Sensex fell 1.45%. Despite the price decline, call option activity surged with 9,963 contracts traded at the Rs.1,500 strike, generating a turnover of ₹531.43 lakhs. Open interest increased by 11.65% to 1,43,414 contracts, reflecting fresh positions being established. The stock briefly touched an intraday high of Rs.1,501.80, surpassing the Rs.1,500 level, which likely fuelled bullish option interest. However, the stock remained below all key moving averages, indicating technical vulnerability. Delivery volume remained subdued, down 56.21% from the five-day average, highlighting cautious investor participation in the cash market.

20 February 2026: Week Closes Lower Amid Volatile Market Conditions

HCL Technologies ended the week on 20 February at Rs.1,437.05, down 0.92% from the previous day’s close, while the Sensex gained 0.41%. The stock’s decline capped a week of mixed price action and heightened derivatives activity. The technical landscape remains complex, with the stock trading below all major moving averages and exhibiting subdued momentum. The surge in open interest and option volumes throughout the week suggests that traders are positioning for increased volatility as the 24 February expiry approaches.

Key Takeaways

Mixed Technical Signals: The week saw a transition from mildly bearish to sideways momentum, with daily moving averages showing short-term bullishness but weekly and monthly indicators remaining cautious. The stock’s position below all major moving averages underscores ongoing technical vulnerability.

Derivatives Market Activity: Heavy put option volumes at the Rs.1,440 strike on 18 February indicated bearish sentiment or hedging, while the subsequent surge in call options at Rs.1,500 on 19 February reflected speculative optimism. The 11.65% rise in open interest suggests active repositioning ahead of the 24 February expiry, contributing to expected volatility.

Volume and Participation Trends: Declining delivery volumes throughout the week point to reduced conviction among long-term investors, with speculative trading dominating. Despite this, liquidity remains robust, supporting sizeable trades without significant price impact.

Relative Performance: HCL Technologies underperformed the Sensex by 1.62 percentage points over the week, closing down 1.23% versus the Sensex’s 0.39% gain. Sectoral weakness in Computers - Software & Consulting added pressure, although the stock showed relative resilience on days of broader market declines.

Dividend and Market Cap: The stock’s attractive dividend yield of approximately 3.68% and large-cap status provide some defensive appeal amid near-term uncertainty.

Conclusion

HCL Technologies Ltd’s performance over the week ending 20 February 2026 reflects a complex interplay of technical consolidation, shifting market sentiment, and active derivatives positioning. The stock’s decline of 1.23% contrasts with the Sensex’s modest gain, highlighting relative weakness amid sectoral and broader market dynamics. Heavy put and call option activity, coupled with a significant rise in open interest, signals heightened volatility and divergent investor views as the 24 February expiry approaches.

Technical indicators suggest a cautious outlook, with the stock trading below key moving averages and exhibiting subdued momentum. Reduced delivery volumes indicate waning long-term investor participation, while derivatives market activity points to speculative and hedging strategies dominating near-term trading. The company’s solid fundamentals, large-cap stature, and attractive dividend yield offer some support, but the downgrade to a Hold rating by MarketsMOJO underscores the need for prudence.

Investors and traders should closely monitor price action around critical support and resistance levels, as well as evolving open interest trends, to gauge the stock’s directional bias in the coming sessions. The interplay of technical signals and option market positioning will be key to navigating the stock’s near-term trajectory in a volatile environment.

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