HCL Technologies Ltd Sees Technical Momentum Shift Amid Mixed Indicator Signals

Price Movement and Market Context

On 30 Dec 2025, HCL Technologies closed at ₹1,630.20, down 1.86% from the previous close of ₹1,661.15. The intraday range was relatively tight, with a low of ₹1,626.05 and a high of ₹1,660.00. This decline contrasts with the broader market, where the Sensex has shown modest gains over the month but remains volatile. Over the past week, HCL’s stock return was -2.38%, underperforming the Sensex’s -1.02% return. However, over the one-month horizon, HCL marginally outperformed the Sensex with a 0.15% gain versus the benchmark’s -1.18% loss.

Longer-term returns reveal a mixed picture. Year-to-date, HCL has declined by 15.02%, significantly lagging the Sensex’s 8.39% gain. Similarly, over the past year, the stock is down 13.82% while the Sensex rose 7.62%. Conversely, over three and ten years, HCL has outperformed the Sensex, delivering returns of 56.07% and 281.53% respectively, compared to the Sensex’s 38.54% and 224.76%. This suggests that while short-term momentum has weakened, the company’s long-term growth trajectory remains robust.

Technical Indicators: A Mixed but Cautious Outlook

The technical landscape for HCL Technologies is nuanced. The overall technical trend has shifted from bullish to mildly bullish, signalling a tempering of upward momentum rather than a full reversal. This is reflected in the Moving Average Convergence Divergence (MACD) indicator, which remains bullish on the weekly chart but has turned mildly bearish on the monthly timeframe. The weekly MACD suggests that short-term momentum is still positive, but the monthly bearishness indicates caution for longer-term investors.

The Relative Strength Index (RSI) presents a more bearish signal on the weekly chart, indicating that the stock may be experiencing downward pressure or is approaching oversold territory in the short term. The monthly RSI, however, shows no clear signal, implying a neutral stance over the longer horizon.

Bollinger Bands provide additional insight. On a weekly basis, the bands are mildly bullish, suggesting that price volatility is contained and the stock is trading near the upper band, which often signals strength. The monthly Bollinger Bands are bullish, reinforcing the notion that the stock’s longer-term price action remains positive despite recent weakness.

Moving averages on the daily chart continue to be bullish, with the stock price trading above key averages, supporting the view that the near-term trend remains intact. The Know Sure Thing (KST) indicator aligns with this, showing bullish momentum weekly but mildly bearish signals monthly, echoing the mixed timeframe outlook.

Dow Theory analysis adds further complexity. The weekly Dow Theory trend is mildly bearish, indicating some short-term caution, while the monthly trend is mildly bullish, consistent with the longer-term positive outlook. On-Balance Volume (OBV) data shows no clear trend weekly but is mildly bullish monthly, suggesting that buying interest is gradually increasing over the longer term.

Mojo Score and Rating Revision

MarketsMOJO assigns HCL Technologies a Mojo Score of 72.0, reflecting a solid buy rating, though this represents a downgrade from the previous Strong Buy grade as of 24 Dec 2025. The downgrade aligns with the observed technical moderation and recent price softness. The company retains a Market Cap Grade of 1, indicating its status as a large-cap stock with significant market presence and liquidity.

Sector and Industry Positioning

Operating within the Computers - Software & Consulting sector, HCL Technologies remains a key player. Despite recent technical headwinds, the sector’s overall outlook remains constructive, supported by ongoing digital transformation trends and enterprise IT spending. HCL’s technical indicators, while mixed, suggest that the stock is consolidating rather than entering a sustained downtrend, which may offer investors an opportunity to accumulate at more attractive levels.

Comparative Performance and Investor Implications

Comparing HCL’s returns to the Sensex highlights the stock’s relative underperformance in the short term, particularly over the past year and year-to-date periods. However, the company’s strong three- and ten-year returns underscore its capacity for long-term value creation. Investors should weigh the current technical signals carefully, recognising that the mildly bullish trend and supportive moving averages may provide a foundation for recovery, but the bearish RSI and monthly MACD caution against excessive optimism.

Given the mixed signals, a prudent approach would be to monitor key technical levels closely. Support near the 52-week low of ₹1,304.00 and resistance around the 52-week high of ₹2,011.00 remain critical benchmarks. A sustained move above the daily moving averages and a positive shift in monthly MACD and RSI could signal a return to stronger bullish momentum.

Conclusion: Navigating a Transitional Phase

HCL Technologies Ltd is currently navigating a transitional phase in its technical momentum. The shift from a bullish to a mildly bullish trend, combined with mixed signals from key indicators such as MACD, RSI, and moving averages, suggests a period of consolidation rather than outright decline. While short-term bearishness is evident, particularly on weekly RSI and monthly MACD, the longer-term technicals and fundamental backdrop remain supportive.

Investors should remain vigilant, balancing the stock’s recent underperformance against its strong historical returns and sector fundamentals. The current technical setup may offer a strategic entry point for those with a medium- to long-term horizon, provided they monitor developments closely and adjust positions in response to evolving momentum signals.

Overall, HCL Technologies continues to be a significant player in the software and consulting space, with a technical profile that reflects both challenges and opportunities in the current market environment.

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