Mumbai: In the wake of Ganesh Chaturthi 2025, market expert Sumeet Bagadia from Choice Broking has encouraged investors to buy shares of HCL Technologies, recommending a purchase at ₹1507 and considering dips down to ₹1480 as additional buying opportunities. Despite a recent decline in profits, the company’s stock is showing signs of stabilization that could lead to meaningful gains in the future.
Strategic Stock Recommendations Amid Market Changes
Sumeet Bagadia, the Executive Director at Choice Broking, has put forth a recommendation for investors looking to capitalize on the medium-term prospects of HCL Technologies. He advises initiating a buy position in the stock at its current market price of ₹1507, while also suggesting that adding to positions on dips towards ₹1480 could be beneficial. Bagadia points out that the stock has found strong support at the ₹1480 level, which could be pivotal for investors navigating uncertain market conditions.
“Based on this technical structure, we recommend initiating a buy position in the stock at the current market price of 1507 and adding on dips towards 1480,” Bagadia mentioned. He also highlighted the importance of the ₹1380 mark as a significant support zone. Breaching this level, he warned, could challenge the stock’s current positive momentum, emphasizing a cautious approach for investors along the way.
Technical Indicators Suggest Optimism
The recent performance of HCL Technologies suggests a potential turnaround. After an extended correction phase, the stock is currently trading around ₹1507, which is showing signs of stabilization. Bagadia explained that HCL Technologies is consolidating in a symmetrical triangle after finding support near the ₹1480 zone, indicating that selling pressure is diminishing and accumulation is beginning to emerge at lower levels.
On the technical front, the stock faces resistance near the 50-day Exponential Moving Average (EMA) at ₹1547 and the 100-day EMA at ₹1588. A decisive move above these levels, he noted, could signal a bullish reversal, paving the way for further gains. The Relative Strength Index (RSI) has recovered from oversold territory and is currently positioned at 48.75, suggesting potential for upward movement. Additionally, the Moving Average Convergence Divergence (MACD) has turned positive, reinforcing prospects for a trend reversal in the near future.
Future Outlook for HCL Technologies
Bagadia stated that if HCL Technologies maintains its position above the ₹1500 mark, it is likely to build momentum that could drive the stock towards the resistance band of ₹1600–₹1640 in the short term. A breakout beyond these levels would not only add strength to the ongoing uptrend but would also target medium-term goals of ₹1730 and ₹1780.
Examining HCL Tech’s Q1 FY26 Performance
The recent quarterly results from HCL Technologies reveal a complex picture. For the quarter ending June 2025 (Q1 FY26), the company reported a net profit of ₹3,843 crore, showing a decrease of 9.7% year-on-year from ₹4,257 crore in the same quarter a year earlier. Sequentially, profits dropped by 10.7% compared to ₹4,307 crore in the previous quarter (Q4 FY25). Despite these challenges, the company did see revenue grow by 8.1% year-on-year, reaching ₹30,349 crore, compared to ₹28,057 crore in Q1 FY25.
However, the increase in quarterly expenses to ₹25,407 crore — a rise of 9.2% year-on-year from ₹23,262 crore — has weighed heavily on profitability. The board has declared an interim dividend of ₹12 per share, further indicating its commitment to shareholder returns even amid fluctuating profit levels.
Future Projections Amid Economic Conditions
In light of current economic conditions, HCL Technologies has projected that revenue growth will range from 3% to 5% year-on-year in constant currency terms. The company also expects its service revenue to grow within the same range while maintaining an EBIT margin between 17% and 18%. This cautious optimism paints a potentially bright future for the company’s stock, underscoring the mixed but hopeful sentiments surrounding HCL Tech in the current market landscape.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Bankerpedia’s Insight💡
Sumeet Bagadia’s bullish outlook on HCL Tech is significant for India’s banking and finance sector, reflecting investor confidence amidst market fluctuations. Despite a recent profit decline, the company’s projected growth highlights resilience and potential recovery, benefiting financial institutions linked to IT investments. For investors, monitoring key support and resistance levels is crucial; initiating positions around ₹1507 and ₹1480 could offer strategic entry points. As always, wise investing should involve thorough analysis and consultation with financial experts, particularly in today’s unpredictable market landscape.
What Does This Mean for Me?🤔
- Salaried Person → Potential opportunity for investment in stable IT stock.
- Business Owner → Opportunity to invest in HCL Tech for growth.
- Student → Investment opportunities may arise from stock market changes.
- Self-employed → Potential investment opportunity in HCL Tech stock.
- Homemaker → Potential investment opportunity for homemakers’ savings.
- Retiree / Senior Citizen → Potential for dividend income and stock investment opportunities.
- Job Seeker → Potential for increased job opportunities in HCL Tech.
- Farmer / Rural Citizen → Stock market trends may indirectly affect rural income stability.
Research References📚
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