HCL Tech can crack 12% from here; check stock strategy

Technical chart shows presence of strong support for HCL Technologies stock in the ₹1,515 - ₹1,533 range.

HCL Technologies (HCL Tech) stock slipped over 4 per cent in Tuesday's intra-day trade to a low of ₹1,550 on the NSE day after the IT firm reported a 10 per cent dip in Q1 net profit.  At 10:10 AM, HCL Tech stock quoted at ₹1,553, down 4.1 per cent. In comparison, the NSE Nifty was up 0.2 per cent at 25,125 levels, and the Nifty IT was down 0.3 per cent at 37,150.  The fall in stock price was attributed to the company slashing down in its margin guidance for the full fiscal year. Analysts too have trimmed their estimates post FY26 guidance. READ MORE  On the earnings front, HCL Tech Q1FY26 net profit declined 9.7 per cent year-on-year to ₹3,843 crore; even as the company's revenue grew by 8.2 per cent to ₹30,349 crore when compared to the year ago period.  Meanwhile, analysts at HSBC Global Research have maintained a 'Hold' rating on the stock with a target price of ₹1,730 per share. This implied a potential upside of 5.6 per cent when compared to yesterday's closing price.  The overseas brokerage firm said that Q1 revenues were largely in line with expectations, though operational margin miss was sharp and so was margin guidance cut for FY26. Following which, HSBC has cut its operating margins forecast for FY26e to 17.5 per cent, now reflecting lower utilisation, expected headwinds from restructuring costs and continued investment in sales & marketing.  "HCLT has performed well recently and is winning market share with improved traction in digital services. Also, its relatively smaller size should allow it to grow faster. However, we believe the stock is not cheap. With our Target Price implying around 6 per cent upside, we rate the stock Hold", HSBC Global said in its research note.  ALSO READ | TCS stock breaks near-term support post Q1 show, can dip another 5%; charts  On the bourses, HCL Tech stock had rallied 37 per cent from a low of ₹1,279 in April to a high of ₹1,753 in March 2025. At present levels, the stock has shed 11.4 per cent from its recent peak.  Will HCL Tech stock continue to slide, or will there be some respite. Here's what the technical chart suggests. 

HCL Tech

Current Price: ₹1,553  Likely Target: ₹1,370  Downside Risk: 11.8%  Support: ₹1,515; ₹1,533  Resistance: ₹1,600; ₹1,640; ₹1,670  Technically, HCL Tech stock looks fairly weak on the chart, as it not only trades below all its key moving averages, but also the lower-end of the Bollinger Bands. This implies that the very near-term bias for the counter is likely to be bearish as long as the stock trades below ₹1,600 levels. 

 

  However, the weekly chart shows that the stock is now trading close to its key trend line support, which more or less converges with the 100-Week Moving Average (100-WMA) around ₹1,520 levels. This level also coincides with the April gap-up low of ₹1,515 levels. Thus, suggesting that the stock can find considerable support around ₹1,515 - ₹1,533 range.  In case the stock breaks below this support zone, HCL Tech may then extend the fall towards ₹1,370 levels - this implies a potential downside risk of nearly 12per cent from present levels.  In order to negate the sentiment; the stock will need to climb back above its 100-Day Moving Average (100-DMA), which stands at ₹1,600 levels. Key hurdles on the upside can be anticipated around ₹1,640 and ₹1,670 levels.