Buy HCL Technologies in range of Rs. 820-840
Target: Rs. 980
Stop Loss: Rs. 760
Time frame: Three months
Derivatives & Quantitative Outlook
The technology space has shown significant resilience in the last couple of months amid broader market volatility. We believe the sector is poised for the next round of upsides after a round of consolidation. HCL Technologies has retraced back to Rs. 800 levels after making lifetime highs near Rs. 900 in October. As long positions are still intact in the stock, we believe it will resume its upward momentum in the short-term.
The open interest in the stock has been increasing gradually in the last couple of months. The open interest in the stock has almost increased 50% since August along with the price movement as long positions were formed in the stock. Despite recent profit booking in the stock, the open interest has remained intact suggesting prevailing long bias still exists. We feel the stock is well placed to move towards its recent highs of Rs. 900 and above in coming days.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_HCLTech_Dec20.pdf
Shares of HCL TECHNOLOGIES LTD. was last trading in BSE at Rs.858.8 as compared to the previous close of Rs. 861.7. The total number of shares traded during the day was 229843 in over 6351 trades.
The stock hit an intraday high of Rs. 867.5 and intraday low of 854.7. The net turnover during the day was Rs. 197641794.