HCL Technologies Ltd Faces Technical Momentum Shift Amid Bearish Signals

Technical Trend Overview and Price Movement

As of 23 Feb 2026, HCL Technologies Ltd (stock code 308453) closed at ₹1,437.05, down 0.92% from the previous close of ₹1,450.40. The stock’s intraday range was between ₹1,431.40 and ₹1,455.30, reflecting modest volatility. Over the past 52 weeks, the share price has fluctuated between ₹1,304.00 and ₹1,770.00, indicating a wide trading band but recent weakness.

The technical trend has shifted from a neutral sideways pattern to a mildly bearish one, signalling a potential change in investor sentiment. This is corroborated by the weekly and monthly technical indicators, which predominantly suggest caution.

MACD and Momentum Indicators Signal Bearishness

The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, shows a bearish signal on the weekly chart and a mildly bearish stance on the monthly chart. This suggests that the short-term momentum is weakening, with the MACD line likely crossing below the signal line on the weekly timeframe, a classic sell signal for technical traders.

Complementing this, the Know Sure Thing (KST) indicator also reflects a mildly bearish trend on both weekly and monthly charts, reinforcing the view of diminishing upward momentum. The absence of a clear trend in Dow Theory analysis on both weekly and monthly scales further emphasises the current uncertainty in directional bias.

RSI and Bollinger Bands: Mixed Signals

The Relative Strength Index (RSI) remains neutral with no clear signal on both weekly and monthly charts, indicating that the stock is neither overbought nor oversold at present. This neutrality suggests that while momentum is weakening, there is no immediate sign of a sharp reversal or capitulation.

However, Bollinger Bands present a bearish signal on both weekly and monthly timeframes. The stock price appears to be testing the lower band, which often indicates increased selling pressure and potential continuation of the downward trend. This technical setup warns investors to be cautious as volatility may increase.

Moving Averages and On-Balance Volume Offer Mild Bullish Support

On a daily basis, moving averages provide a mildly bullish signal, suggesting that short-term price averages remain supportive despite recent declines. This could imply that the stock may find some support near current levels, potentially limiting further downside in the near term.

On-Balance Volume (OBV), a volume-based indicator, shows no clear trend on the weekly chart but a mildly bullish signal on the monthly chart. This divergence between price and volume may indicate accumulation by institutional investors over the longer term, which could provide a foundation for future price recovery.

Comparative Performance Against Sensex

HCL Technologies’ recent returns have lagged behind the benchmark Sensex index across multiple time horizons. Over the past week, the stock declined by 1.23%, while the Sensex gained 0.23%. The one-month return for HCL was a steep negative 15.01%, contrasting with a modest 0.77% gain in the Sensex.

Year-to-date, HCL has fallen 11.53%, significantly underperforming the Sensex’s 2.82% decline. Over the last year, the stock’s return was -14.88%, whereas the Sensex appreciated by 9.35%. Even over longer periods such as three and five years, HCL’s returns of 28.86% and 51.27% respectively trail the Sensex’s 36.45% and 62.73% gains. Over a decade, the stock’s cumulative return of 238.05% is slightly below the Sensex’s 249.29%.

This persistent underperformance relative to the benchmark highlights the challenges faced by HCL Technologies in maintaining investor confidence amid evolving market dynamics and sectoral pressures.

Mojo Score and Rating Revision

Reflecting the technical and fundamental outlook, MarketsMOJO has revised HCL Technologies’ Mojo Grade from a previous Buy to a Hold as of 09 Feb 2026. The current Mojo Score stands at 60.0, indicating a moderate level of confidence in the stock’s near-term prospects. The Market Cap Grade remains at 1, signalling the company’s large-cap status but also suggesting limited upside potential under current conditions.

Investors should note that the downgrade to Hold aligns with the mildly bearish technical signals and the stock’s recent price underperformance, signalling a need for caution and close monitoring of further developments.

Investor Takeaway and Outlook

HCL Technologies Ltd’s technical indicators collectively suggest a cautious stance for investors. The mildly bearish weekly MACD and Bollinger Bands, combined with neutral RSI readings, point to a potential continuation of the recent downward momentum. However, the mildly bullish daily moving averages and monthly OBV hint at underlying support that could stabilise the stock in the near term.

Given the stock’s underperformance relative to the Sensex and the downgrade to a Hold rating, investors should carefully weigh the risks of further declines against the possibility of a technical rebound. Monitoring key support levels near ₹1,430 and observing volume trends will be critical in assessing the stock’s next directional move.

Longer-term investors may find value in HCL’s established market position and sector fundamentals, but the current technical setup advises prudence and selective exposure until clearer bullish signals emerge.

Summary of Key Technical Metrics:

• MACD: Weekly Bearish, Monthly Mildly Bearish
• RSI: Neutral on Weekly and Monthly
• Bollinger Bands: Bearish on Weekly and Monthly
• Moving Averages: Daily Mildly Bullish
• KST: Mildly Bearish on Weekly and Monthly
• Dow Theory: No clear trend
• OBV: Mildly Bullish on Monthly, No trend on Weekly

Investors should continue to monitor these indicators alongside broader market conditions and company-specific developments to make informed decisions.

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