HCL - Stronger Case of an Upside

HCL Technologies has been one of the few IT companies that has not participated in this rally as much as one would expect from a top IT firm.

• MACD crossover just happened yesterday.
• The price has broken the intermeidate 61.8% fibonacci series by over 3% to Rs. 580, confirming a possible upside to this movement.
• RSI was largely benefited by the recent two days rally in the stock.
• The only exciting part of this stock comes from the OBV chart. The stock has seen a large amount of selling and we have almost a completely new set of investors in this stock. Right from mid April, the stock has seen greater amount of people selling in this stock rather than buying. The stock is approximately 10% discount to that price. However, for the same price the stock some strong declines in the OBV chart.

Given the nature of this movement in the Tech Sector, there looks to be an opportunity to be made in HCL. However, caution would certainly be an important element.