Long-term Trade Idea: Analysts See More Upside For HCL Tech

Analysts see signs of a trend reversal, with improving technicals and investor sentiment positioning HCL Tech as a sector leader to watch.

HCL Technologies is on a tear, rallying 8% in Wednesday’s trade after delivering better-than-expected earnings and guidance for FY26.

Buoyed by deal wins and operational strength, the company’s performance has shifted investor sentiment. 

Data from Stocktwits indicates retail sentiment has reduced to ‘bearish' from ‘extremely bearish’ a week ago, while message volume was ‘high.’ 

So what are analysts making of the stock going ahead?

SEBI-registered analyst Harika Enjamuri sees potential signs of a turnaround. India’s third-largest IT exporter, she notes, has posted steady fourth-quarter (Q4) numbers that hint at a positive growth trajectory.

On technical charts, Harika notes that after a prolonged downtrend from ₹2,000 to ₹1,300, HCL Tech has reversed course in April, breaking key resistance levels and showing bullish momentum with the daily RSI at 59.5. 

She points out that a sustained move above ₹1,600 could open targets at ₹1,656 and ₹1,680, with strong support in the ₹1,480–₹1,500 range, making the upcoming sessions crucial to determine if this is a structural reversal or a short-term rally

According to him, HCL Tech stands out as one of the first large-cap IT companies to show such sustained upward momentum, marking it as a sector leader in a generally cautious market.

Vipin sees the shift in momentum and improving investor sentiment as reasons why HCL Tech is a compelling candidate for long-term accumulation on dips. 

With resistance at 1,670 and support at 1,363, he considers HCL Tech a top pick among IT majors during the current phase of sector recovery.

HCL Tech is down17% year-to-date (YTD).

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