Investors with a short-term perspective can sell the stock of HCL Technologies at current levels. The stock’s medium-term uptrend which started from the May low of ₹1,257 came to a halt after hitting a high at ₹1,775 levels in early October. The stock then tumbled, breaking its medium-term uptrend line and 50-day moving average decisively. A corrective rally followed and the stock resumed its short-term downtrend. On Monday, the stock fell 2 per cent, breaching its immediate support at ₹1,600. Moreover, it is hovering well below its 21- as well as 50-day moving averages. The daily relative strength index has entered the bearish zone from the neutral region and negative bias is seen in the weekly RSI. The daily moving average convergence divergence indicator has signalled a sell. The short-term outlook for the stock is bearish. It can decline to ₹1,500 and then to ₹1,470 level in the upcoming trading sessions. Sell the stock with a stop-loss at ₹1,595.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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