HCL Technologies Ltd NSE: HCLTECH was one of the biggest gainers in trade today. The stock rallied by close to 5% on the back of heavy volumes which is being seen as a huge positive by the traders on the street. The rally in the stock was on the back of a good set of results posted by the IT giants like TCS in the fourth quarter which beat most street expectations both on the revenue and the profitability front. The falling Indian rupee was also seen as a driver for most IT stocks during the trading day. Many believe that the sharp depreciation in the Indian rupee could lead to higher revenues for most IT companies in the coming quarters which is seen as a huge positive for HCL Technologies Ltd NSE: HCLTECH.
It is imperative to state that the stellar results from TCS meant that IT companies like HCL Technologies Ltd NSE: HCLTECH were bought into by investors on expectations that the company would continue on its upward growth trajectory going forward. The falling indian rupee would also act as an impetus for the company. The company has reiterated that it would be spending a lot of efforts on improving its AI platforms going forward which is being seen as a huge positive by analysts on the street. Many analysts believe that IT companies like HCLTech and TCS could become the rank outperformers for the Indian markets during the year.
HCL Technologies LtdNSE: HCLTECH has given a massive breakout on the daily charts. The stock is currently trading above all important daily moving averages which is a bullish signal. The momentum indicators for the stock have given a clear buy signal which is indicative of the strong bullish bias. The RSI for the stock continues to be in positive territory and shows no signs of a reversal which is being seen as a huge positive by the traders on the street. The stock continues to see massive support near the Rs. 1025 level and might find some resistance near levels of Rs. 1100 according to analysts on the street. The company has been forming higher highs and higher lows which is indicative of the buying interest coming in at all dips which is a bullish signal for the stock going forward. Many believe that only a fall below the psychological level of Rs.1000 would cause the stock to head lower.
Looking at the derivatives data for Tata Consultancy Services Limited NSE: TCS continues to see huge open interest buildup at the 1100 CE which many believe would be a resistance for the stock in the near term. On the put side 1000 put continues to see highest open interest which is indicative of the strong support at those levels.