HCL Technologies Ltd Sees Technical Momentum Shift Amid Mixed Market Signals

Current Market Performance and Price Action

As of 2 Feb 2026, HCL Technologies closed at ₹1,668.50, down 1.53% from the previous close of ₹1,694.45. The stock traded within a range of ₹1,614.10 to ₹1,710.55 during the day, remaining below its 52-week high of ₹1,752.00 but comfortably above the 52-week low of ₹1,304.00. This price action indicates some short-term volatility, with the stock testing support levels near ₹1,610 while facing resistance around ₹1,710.

Technical Trend Shift: From Bullish to Mildly Bullish

The technical trend for HCL Technologies has shifted from a clear bullish stance to a mildly bullish one. This adjustment reflects a cautious optimism among traders and investors, as momentum indicators suggest a potential slowdown in the pace of gains. The daily moving averages remain bullish, signalling that the short-term trend is still positive, but weekly and monthly indicators present a more mixed picture.

MACD Analysis: Divergent Signals Across Timeframes

The Moving Average Convergence Divergence (MACD) indicator shows a bullish signal on the weekly chart, suggesting that momentum remains positive in the near term. However, the monthly MACD has turned mildly bearish, indicating that longer-term momentum may be weakening. This divergence suggests that while short-term traders may find opportunities, longer-term investors should exercise caution and monitor for further confirmation of trend direction.

RSI and Momentum Oscillators

The Relative Strength Index (RSI) currently shows no definitive signal on both weekly and monthly timeframes, hovering in a neutral zone. This lack of a clear RSI signal implies that the stock is neither overbought nor oversold, which aligns with the observed consolidation in price. The Know Sure Thing (KST) oscillator echoes this mixed sentiment, being bullish on the weekly scale but mildly bearish on the monthly, reinforcing the notion of a transitional phase in momentum.

Bollinger Bands and Volatility Insights

Bollinger Bands on both weekly and monthly charts indicate a mildly bullish stance, suggesting that price volatility is contained within an upward trending channel. This technical setup often precedes a breakout or a sustained move, but the mildness of the signal points to a cautious market awaiting further catalysts. The bands’ contraction and expansion patterns should be closely monitored for signs of impending volatility shifts.

Moving Averages and Daily Momentum

Daily moving averages continue to support a bullish trend, with the stock price trading above key averages such as the 50-day and 200-day moving averages. This alignment typically signals sustained buying interest and underpins the mildly bullish weekly and monthly outlooks. However, the recent day’s decline of 1.53% suggests some profit-taking or short-term resistance, which could test these moving averages as support levels.

Volume and On-Balance Volume (OBV) Analysis

On-Balance Volume (OBV) indicators show no clear trend on weekly and monthly charts, indicating that volume flow is not decisively favouring buyers or sellers. This neutral volume pattern aligns with the mixed momentum signals and suggests that market participants are currently indecisive, awaiting clearer directional cues.

Comparative Returns: HCL Technologies vs Sensex

Examining HCL Technologies’ returns relative to the Sensex reveals a nuanced performance. Over the past week, the stock declined by 2.23%, underperforming the Sensex’s 1.00% drop. However, over the last month and year-to-date periods, HCL outperformed the benchmark with gains of 3.30% and 2.72% respectively, while the Sensex fell by 4.67% and 5.28%. Over longer horizons, HCL’s returns have been robust, with a 3-year return of 47.04% compared to Sensex’s 35.67%, a 5-year return of 82.36% versus 74.40%, and a remarkable 10-year return of 285.33% against 224.57% for the Sensex. These figures underscore the company’s strong fundamental and market position despite short-term technical fluctuations.

Dow Theory and Trend Confirmation

According to Dow Theory, the weekly trend remains mildly bullish, while the monthly trend shows no clear direction. This suggests that while short-term price movements support a positive outlook, the longer-term trend requires further validation. Investors should watch for confirmation signals such as sustained higher highs and higher lows to reinforce confidence in the upward trajectory.

Mojo Score and Rating Update

MarketsMOJO has recently downgraded HCL Technologies’ Mojo Grade from Strong Buy to Buy as of 1 Feb 2026, reflecting the tempered technical momentum and mixed signals from key indicators. The company maintains a robust Mojo Score of 72.0, signalling favourable fundamentals and growth prospects. The Market Cap Grade remains at 1, indicating a large-cap status with strong market capitalisation. This rating adjustment suggests a prudent approach for investors, balancing the stock’s long-term strengths against near-term technical caution.

Investment Outlook and Strategic Considerations

Investors should consider the current mildly bullish technical environment as a phase of consolidation rather than a reversal. The mixed signals from MACD, RSI, and KST oscillators imply that momentum is stabilising, and a clearer directional trend may emerge in the coming weeks. The stock’s strong relative performance over medium and long-term periods versus the Sensex supports a positive fundamental backdrop.

Traders may find opportunities in short-term price swings, particularly if the stock sustains support near the ₹1,610 level and breaks above resistance around ₹1,710. Long-term investors should monitor the monthly MACD and Dow Theory signals for confirmation of trend strength before increasing exposure.

Conclusion

HCL Technologies Ltd is currently navigating a transitional phase in its price momentum, characterised by a shift from bullish to mildly bullish technical trends. While daily moving averages and weekly MACD remain supportive, monthly indicators and volume trends counsel caution. The stock’s solid long-term returns and recent Mojo Grade of Buy reflect underlying strength, but investors should remain vigilant for further technical confirmation before committing additional capital.

Overall, HCL Technologies presents a balanced risk-reward profile in the current market context, with potential for near-term growth tempered by the need for sustained momentum signals.

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