HCL Technologies Ltd Technical Momentum Shifts Amid Market Pressure

Current Price and Market Context

As of 24 February 2026, HCL Technologies closed at ₹1,426.35, down 0.74% from the previous close of ₹1,437.05. The stock traded within a range of ₹1,416.90 to ₹1,441.65 during the day, remaining well below its 52-week high of ₹1,770.00 but comfortably above the 52-week low of ₹1,304.00. This price action underscores a consolidation phase after a period of significant volatility.

Technical Trend Evolution

Technical analysis reveals a shift in momentum. The overall trend has transitioned from mildly bearish to sideways, indicating a pause in the downward pressure and a potential base-building phase. This is corroborated by the daily moving averages, which currently present a mildly bullish signal, suggesting short-term support for the stock price.

However, longer-term indicators paint a more cautious picture. The weekly and monthly Moving Average Convergence Divergence (MACD) remain bearish and mildly bearish respectively, signalling that the underlying momentum has yet to fully recover. The Relative Strength Index (RSI) on both weekly and monthly charts shows no clear signal, hovering in neutral territory, which aligns with the sideways price movement.

Bollinger Bands and KST Indicators

Bollinger Bands on weekly and monthly timeframes continue to indicate bearish pressure, with the stock price frequently touching or breaching the lower bands. This suggests elevated volatility and potential downside risk if support levels fail to hold. The Know Sure Thing (KST) indicator, a momentum oscillator, remains mildly bearish on both weekly and monthly charts, reinforcing the cautious stance among technical traders.

Volume and Dow Theory Signals

On-Balance Volume (OBV) analysis shows no clear trend on the weekly scale but a mildly bullish signal on the monthly scale, hinting at accumulation over a longer horizon. Dow Theory assessments are mixed: weekly readings are mildly bullish, while monthly readings show no definitive trend, reflecting uncertainty in the broader market sentiment towards the stock.

Comparative Performance and Market Returns

HCL Technologies’ recent returns have lagged behind the broader Sensex benchmark. Over the past week, the stock declined by 2.51%, while the Sensex gained a marginal 0.02%. The one-month performance is more stark, with HCL falling 16.42% against a 2.15% rise in the Sensex. Year-to-date, the stock is down 12.19%, compared to a 2.26% decline in the Sensex, and over the last year, HCL has dropped 16.14% while the Sensex advanced 10.60%.

Longer-term returns show a more positive trend, with HCL Technologies delivering a 30.29% gain over three years and 56.72% over five years, though these still trail the Sensex’s respective 39.74% and 67.42% gains. Over a decade, HCL’s 243.00% return is slightly behind the Sensex’s 255.80%, indicating solid but not market-leading growth.

Mojo Score and Grade Revision

MarketsMOJO assigns HCL Technologies a Mojo Score of 65.0, reflecting a Hold rating, downgraded from Buy on 9 February 2026. The Market Cap Grade remains at 1, indicating a large-cap status but with limited recent momentum. This downgrade reflects the mixed technical signals and the stock’s underperformance relative to the benchmark indices.

Investor Implications and Outlook

For investors, the current technical landscape suggests caution. The mildly bullish daily moving averages offer some near-term support, but the prevailing bearishness in weekly and monthly MACD and Bollinger Bands signals potential challenges ahead. The sideways trend may indicate a consolidation phase before a clearer directional move emerges.

Given the stock’s recent underperformance relative to the Sensex and the downgrade in Mojo Grade, investors should closely monitor key support levels around ₹1,400 and resistance near ₹1,450. A sustained break above the daily moving averages and a positive shift in MACD could signal renewed buying interest. Conversely, a breach below recent lows may trigger further downside.

Sector and Industry Context

Within the Computers - Software & Consulting sector, HCL Technologies faces stiff competition from peers who have demonstrated stronger technical momentum and earnings growth. The sector itself has been volatile amid global economic uncertainties and shifting technology spending patterns. Investors should weigh HCL’s technical signals alongside fundamental factors such as order book growth, margin trends, and currency fluctuations.

Conclusion

HCL Technologies Ltd currently exhibits a complex technical profile with mixed signals across multiple timeframes. While daily moving averages suggest some short-term bullishness, the broader weekly and monthly indicators remain cautious. The sideways trend reflects market indecision, with the stock consolidating after a period of weakness relative to the Sensex.

Investors are advised to monitor technical developments closely, particularly MACD and Bollinger Band behaviour, to gauge the next directional move. The recent downgrade to Hold by MarketsMOJO underscores the need for prudence, especially given the stock’s recent underperformance. However, the company’s long-term track record and sector positioning may offer opportunities for patient investors willing to navigate the current technical uncertainty.

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