Technical Trend Overview and Momentum Shift
Recent technical assessments reveal that HCL Technologies’ momentum has softened. The weekly and monthly Moving Average Convergence Divergence (MACD) indicators have both turned mildly bearish, signalling a loss of upward momentum. The MACD, which measures the relationship between two moving averages of the stock’s price, suggests that the bullish momentum that supported gains earlier this year is waning. This is further corroborated by the monthly Bollinger Bands, which have shifted to a bearish stance, indicating increased volatility and a potential for downward price pressure.
Conversely, the daily moving averages remain mildly bullish, suggesting that short-term price action still holds some positive bias. However, this is tempered by the weekly and monthly Know Sure Thing (KST) indicators, which are mildly bearish, reflecting a broader medium-term caution among investors. The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory and indicating neither overbought nor oversold conditions.
Price Action and Volatility
On 10 Feb 2026, HCL Technologies closed at ₹1,600.80, up marginally by 0.45% from the previous close of ₹1,593.55. The stock traded within a range of ₹1,594.95 to ₹1,619.70 during the day, reflecting moderate intraday volatility. Despite this, the price remains below its 52-week high of ₹1,770.00 and comfortably above the 52-week low of ₹1,304.00, indicating a broad trading range that investors should monitor closely for breakout or breakdown signals.
Comparative Performance Against Sensex
When benchmarked against the Sensex, HCL Technologies has underperformed in the short term. Over the past week, the stock declined by 4.49%, while the Sensex gained 2.94%. Similarly, the one-month return for HCL was -3.70% compared to the Sensex’s modest 0.59% rise. Year-to-date, the stock’s return of -1.45% slightly trails the Sensex’s -1.36%, indicating a broadly similar but slightly weaker performance.
Longer-term returns paint a more favourable picture for HCL Technologies. Over one year, the stock has declined by 7.26%, contrasting with the Sensex’s robust 7.97% gain. However, over three, five, and ten-year horizons, HCL has outperformed the benchmark, delivering returns of 39.65%, 68.19%, and an impressive 294.36% respectively, compared to the Sensex’s 38.25%, 63.78%, and 249.97%. This long-term outperformance underscores the company’s resilience and growth potential despite recent technical headwinds.
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In-Depth Technical Indicator Analysis
The weekly MACD’s mildly bearish reading suggests that the momentum loss is not yet severe but warrants caution. The MACD histogram has shown a gradual decline in positive momentum bars, indicating that the bullish trend is weakening. On the monthly scale, the MACD line remains below its signal line, reinforcing the subdued momentum outlook.
The RSI’s neutral stance on both weekly and monthly charts implies that the stock is neither overbought nor oversold, which often precedes a period of consolidation or sideways movement. This aligns with the overall technical trend change from mildly bullish to sideways, suggesting that investors may await clearer directional cues before committing to new positions.
Bollinger Bands on the weekly chart are sideways, indicating that price volatility has stabilised after recent fluctuations. However, the monthly Bollinger Bands’ bearish signal points to a potential widening of the bands with downward price pressure, which could translate into increased volatility in the medium term.
Moving averages on the daily chart remain mildly bullish, with the 50-day moving average still above the 200-day moving average, a classic sign of an uptrend. Yet, the narrowing gap between these averages signals a possible weakening of this trend if the price fails to sustain above key support levels.
The KST indicator, which aggregates multiple rate-of-change measures, is mildly bearish on both weekly and monthly timeframes, reinforcing the cautious tone. Meanwhile, Dow Theory and On-Balance Volume (OBV) indicators show no clear trend, suggesting that volume and price action are not currently confirming any strong directional bias.
Market Capitalisation and Mojo Score Implications
HCL Technologies holds a Market Cap Grade of 1, indicating a large market capitalisation relative to its peers in the Computers - Software & Consulting sector. The company’s Mojo Score has been downgraded from a Buy to a Hold on 9 Feb 2026, reflecting the recent technical softness and mixed momentum signals. The current Mojo Score stands at 62.0, which is moderate and consistent with a Hold rating, signalling that investors should exercise caution and monitor developments closely.
This downgrade suggests that while HCL Technologies remains fundamentally sound, the technical indicators advise a more conservative stance in the near term. Investors should weigh these signals alongside broader market conditions and sectoral trends before making allocation decisions.
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Investor Takeaways and Outlook
For investors, the current technical landscape of HCL Technologies suggests a period of consolidation and sideways movement in the near term. The mildly bearish MACD and KST indicators, combined with neutral RSI readings, imply that the stock may struggle to sustain strong upward momentum without fresh catalysts.
Given the stock’s recent underperformance relative to the Sensex in the short term, investors should be cautious about initiating new long positions until clearer bullish signals emerge. However, the long-term outperformance relative to the benchmark index remains a positive factor for those with a longer investment horizon.
Monitoring key support levels near ₹1,590 and resistance around ₹1,620 will be critical in the coming weeks. A decisive break above the daily moving averages and the recent intraday high could signal a resumption of the uptrend, while a breakdown below support may open the door to further downside risk.
In summary, HCL Technologies currently exhibits a mixed technical profile with a shift towards sideways momentum. Investors should balance these technical signals with fundamental considerations and broader market trends to make informed decisions.
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