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Investors with a short-term perspective can buy the stock of HCL Technologies at current levels. After a medium-term downtrend from the February high of ₹624, the stock registered a 52-week low at ₹375.5 in late March and found support. Key support at ₹400 also provided base for the stock in early April this year.
Triggered by positive divergence on the daily RSI as well as the price rate of change indicator, the stock reversed direction thereafter and began to trend upwards. Since then, it started rallying and breached the 21-day moving average in early April.
On Thursday, the stock gained 3.4 per cent accompanied by above average volume, strengthening the short-term uptrend. With this rally, the stock now tests a vital resistance at ₹478 with a positive bias. An upward break of this level can take the stock northwards further.
The daily RSI is charting higher in the neutral region and the weekly RSI has entered the neutral region from the bearish zone. Besides, the daily price rate of change indicator features in the positive terrain implying buying interest. Short-term targets are ₹500 and ₹510.
Traders can buy with a stop-loss at ₹467.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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