Is Hexaware Tech. technically bullish or bearish?

Technical Trend Shift and Price Action

On 4 December 2025, Hexaware Tech’s technical trend transitioned from mildly bearish to mildly bullish, signalling a tentative improvement in market sentiment. The stock closed at ₹795.65, up from the previous close of ₹757.80, marking a notable intraday gain. Today’s trading range between ₹750.55 and ₹808.40 further underscores increased volatility and buying interest near the upper band.

Despite this positive shift, the stock remains below its 52-week high of ₹900.15, indicating room for further upside before challenging recent peaks. The 52-week low of ₹592.95 provides a significant support level, highlighting the stock’s resilience over the past year.

Mixed Technical Indicators: A Closer Look

Hexaware’s technical indicators present a mixed but cautiously optimistic outlook. The Moving Average Convergence Divergence (MACD) on a weekly timeframe is bullish, suggesting upward momentum in the near term. However, the monthly MACD remains mildly bearish, indicating that longer-term momentum has yet to fully confirm a sustained uptrend.

The Relative Strength Index (RSI) on both weekly and monthly charts shows no clear signal, implying that the stock is neither overbought nor oversold at present. This neutral RSI reading suggests that the stock has room to move in either direction without immediate risk of reversal due to extreme conditions.

Bollinger Bands provide a more encouraging signal, with both weekly and monthly indicators showing bullish tendencies. This suggests that price volatility is expanding upwards, often a sign of strengthening trend and potential breakout.

Contrasting Signals from Other Indicators

The daily moving averages remain mildly bearish, reflecting some short-term caution among traders. Meanwhile, the Know Sure Thing (KST) indicator diverges across timeframes: bearish on the weekly chart but bullish on the monthly. This divergence highlights the tension between short-term selling pressure and longer-term accumulation.

Dow Theory readings are mildly bullish on both weekly and monthly scales, reinforcing the notion that the broader trend is gradually improving. The On-Balance Volume (OBV) indicator is mildly bullish on the weekly chart but shows no clear trend monthly, suggesting that volume flows are supportive but not decisively so.

Performance Relative to Benchmarks

Hexaware Tech’s recent returns have outpaced the broader Sensex benchmark over short-term periods, signalling strong relative strength. Over the past week, the stock gained 6.78%, while the Sensex declined by 0.53%. The one-month return is even more impressive at 14.47%, compared to the Sensex’s 2.16% rise.

However, longer-term returns tell a more nuanced story. While the stock has delivered a 69.02% gain over five years, this lags the Sensex’s 89.14% return over the same period. Over a decade, Hexaware’s 214.11% gain is also slightly behind the Sensex’s 232.57%. This suggests that while the company has shown strong recent momentum, it has historically underperformed the broader market over extended horizons.

Sector Context and Industry Positioning

Operating within the Computers - Software & Consulting industry, Hexaware Tech is part of a highly competitive and rapidly evolving sector. Technical analysis must be considered alongside sector trends, which often influence stock price movements. The sector has generally benefited from digital transformation tailwinds, but is also subject to cyclical pressures and global IT spending patterns.

Given this backdrop, the mildly bullish technical trend could reflect growing investor confidence in Hexaware’s ability to capitalise on industry growth opportunities. Yet, the presence of mixed signals across indicators advises caution and the need for close monitoring of price action and volume trends.

Key Support and Resistance Levels

From a technical standpoint, the stock’s immediate support lies near the recent low of ₹750.55, which coincides with the lower end of today’s trading range. A sustained break below this level could signal a return to bearish momentum. Conversely, resistance is likely to be encountered near the recent high of ₹808.40 and the 52-week peak of ₹900.15, which remains a significant hurdle for bulls to overcome.

Investors should watch for a decisive move above these resistance levels to confirm a stronger bullish trend. Until then, the mildly bullish stance suggests a cautious optimism rather than an unequivocal uptrend.

Conclusion: A Tentative Bullish Outlook with Caveats

In summary, Hexaware Technologies currently exhibits a mildly bullish technical profile, supported by positive weekly MACD, bullish Bollinger Bands, and improving Dow Theory signals. The recent trend change from mildly bearish to mildly bullish reflects a shift in market sentiment that could pave the way for further gains.

However, the presence of bearish signals on some indicators such as the monthly MACD and weekly KST, alongside mildly bearish daily moving averages, suggests that the stock is not yet in a fully confirmed uptrend. Investors should remain vigilant for confirmation through sustained price advances above key resistance levels and stronger volume support.

Given the stock’s outperformance relative to the Sensex in the short term, Hexaware Tech appears well-positioned to capitalise on near-term momentum. Yet, the mixed technical signals counsel a balanced approach, combining optimism with prudent risk management.

For investors seeking exposure to the Computers - Software & Consulting sector, Hexaware’s current technical stance offers a cautiously constructive entry point, provided that ongoing market developments and technical confirmations are closely monitored.

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