Shares of HCL Technologies on Wednesday extended their fall for the third consecutive session. The stock today settled 0.26 per cent lower at Rs 1,081.20. Around 36,000 shares changed hands today on BSE, which was half compared to the two-week average of 72,000 shares. Turnover on the counter stood at Rs 3.89 crore, commanding a market capitalisation (m-cap) of Rs 2,93,401.47 crore. At today’s closing price of Rs 1,081.20, the scrip traded 23.47 per cent higher from its 52-week low of Rs 875.65, hit on August 29 last year. That said, it has fallen 10.13 per cent from its one-year high level of Rs 1,203, touched on April 5, 2022.
On a year-to-date (YTD) basis, the counter has 4.04 per cent. Kotak Institutional Equities has given a ‘Buy’ call for HCL Tech while pegging it at a fair value of Rs 1,280 over the next 12 months.
Ganesh Dongre, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “On the daily charts, the stock has seen consolidating in the zone of Rs 1,010-1,150 from the last two-three months. The stock price is holding above its 200-DMA price placed at Rs 1,010, which is bullish in nature. One can buy this stock on dip with the stop loss of Rs 1,010 for a target price of Rs 1,150.”
Ravi Singhal, CEO, GCL, said, “The stock looks very weak on technical charts amid the fallout of banks in the US and Europe. There are concerns that banks there could cut IT spending on digital infrastructure, which may impact domestic IT firms. For HCL Tech, Singhal lowered the target price to Rs 1,000. He advised traders to keep a stop loss at Rs 1,122.
AR Ramachandran from Tips2trades said, “HCL Tech looks flat to bearish on the daily charts with strong resistance at Rs 1,110. A daily close below its support of Rs 1,069 could lead to Rs 1,030 in the near term.”
The stock traded higher than the 200-day moving averages but lower than the 5-day, 20-, 50- and 100-day moving averages. The counter’s 14-day relative strength index (RSI) came at 43.20. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 25.32.
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The scrip has an average target price of Rs 1,177.08, Trendlyne data showed, suggesting a potential upside of 8.84 per cent. It has a one-year beta of 0.97, indicating average volatility on the counter.
On the earnings front, HCL Tech reported a 19 per cent increase in the consolidated net income to Rs 4,096 crore for the third quarter that ended December 31, 2022, against a net income of Rs 3,442 crore in the year-ago period.
The company is scheduled to hold meetings on April 19 and 20 this year to consider its financial results for the financial year ending March 31, 2023, (FY23) and interim dividend payment.
Meanwhile, Indian equity benchmarks extended their gains for the second straight session, led by gains in pharma, state-owned lenders, automobile, consumer goods and financials.
