Can I buy HCL Technologies at current levels? What is the outlook?

Ishwar Lal Pareek

HCL Technologies (₹1,262): Outlook is bullish for HCL Technologies. The stock has been moving up very well since October last year. Although the pace of the rise had slowed down since December last year, the sharp rise last week has given a very nice bullish breakout. This could boost the bullish momentum. The moving average indicators are also giving out positive signals and hint that downside could be limited. From long-term perspective, HCL Technologies’ share price can target ₹1,700 over the next one year. Immediate support is at ₹1,220.

Below that, ₹1,120 and then ₹1,100-1,080 are the next strong supports. The stock price has to decline below ₹1,080 to turn bearish. But that looks unlikely. Buy HCL Technologies at the current levels. Accumulate at ₹1,220. Keep the stop-loss at ₹1,040. Trail the stop-loss up to ₹1,320 as soon as the stock moves up to ₹1,410. Move the stop-loss further up to ₹1,480 when HCL Technologies’ share price moves up to ₹1,540. Exit the long positions at ₹1,680.

I have been holding Rain Industries share for nearly eight years now. What is the outlook?

Pankaj KR Basu

Rain Industries (₹180.40): The stock has been stuck below ₹210 since March last year. However, the price action since September last year indicates a rounding pattern on the charts. This leaves the bias positive. As such, the chances are high for the stock to breach ₹210, if not immediately but eventually in the coming months. That breakout will take the Rain Industries’ share price up to ₹290-295 over the next one year. Strong support is in the ₹150-140 region.

Only a fall below ₹140 will turn the outlook bearish. You have not mentioned your buy price. Keep a stop-loss at ₹130 and hold the stock. Move the stop-loss up to ₹205 as soon as the stock moves up to ₹240. Move the stop-loss further up to ₹245 when the price touches ₹260. Exit the shares at ₹290. Investors with a time-frame of one year or more can buy at current levels. Accumulate at ₹160. Keep the stop-loss at ₹130 and follow the same strategy mentioned above.

I am planning to make a long-term investment in the stock of NMDC. How does the stock look on the charts? What is the outlook?

Vishal shah

NMDC (₹142.35): The stock has been in a prolonged sideways move for more than 10 years now. The broad trading range has been ₹44-153. The stock is now coming closer to the upper end of its range. This time, the chances of the stock to break the range above ₹153 are looking high. The reason is that the price action since June 2021 on the monthly chart indicates an inverted head-and-shoulder formation. This is a bullish reversal pattern. The target of this pattern is coming around ₹210. Such a rise will also mark the end of the multi-year sideways consolidation.

It will open the doors to target ₹260 on the upside in the coming months. Support is now in the ₹130-120 region where the neckline support of the inverted head-and-shoulder pattern is also poised. Considering the bullish reversal pattern, you can buy the stock at current levels. Accumulate at ₹132. Keep the stop-loss at ₹102. Trail the stop-loss up to ₹150 as soon as the stock moves up to ₹175. Move the stop-loss further up to ₹210 when the price touches ₹230. Exit the shares at ₹260.

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