Analysis: HCLTECH

Today’s pick is HCLTECH. [stockquote]HCLTECH[/stockquote]. After being range-bound between 450 and 500 for the first half of the year, it broke-out in July, and has continued with the uptrend since. The stock just saw its 52 week high at 660 levels. In the last three months, the stock moved 8% against 13% rise of Nifty’s.


Oscillators RSI and CMO are at currently at 51 and 4 – in no man’s land.

The MACD line just crossed signal line in a bearish manner which can pull the stock down for a short-term. Also, the short-term 9×4 technical just saw a bearish cross over for the stock.

The long-term GMMA lines are well spread out, and hence are giving a positive outlook for the stock.


HCLTECH’s average correlation of 0.49 with the Nifty is positive. The stock will replicate the movements of Nifty. [stockquote]NIFTYBEES[/stockquote]


HCLTECH has a historical volatility in the range of 0.3 to 0.7. The scrip’s volatility is currently in the lower side of the range.

Looking at these technicals the stock is short-term SELL. A longer term call can be taken once it becomes clear that the stock holds the current trend-line.

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