Indian stock market is in a cheerful mood in the last few weeks. Market indices are hitting new highs. The markets are in a strong uptrend.
Certain stocks are also on the rise or are preparing to make fresh upmoves. HCL Tech stock is also giving positive signals. Looking at the daily technical charts, the stock seems ready for a decent upswing.
Current stock price of HCL Tech at Rs.571 is trading above all the short and long term moving averages. This indicates that the stock is in an upside momentum. Recently, the stock tested the 50 day simple moving average and bounced back.
Moreover on daily technical charts, the HCL Tech stock is also forming an inverse head and shoulders pattern. Although the pattern is not complete yet but looking at the other technical indicators and momentum in stock price, it looks like the pattern will be completed soon. Inverse head and shoulders pattern is a bullish pattern which indicates that stock prices are likely to head higher in near future.
The MACD or moving average convergence divergence technical indicator is giving bullish signal. The relative strength index or RSI is also giving buy signal.
In the coming days the stock is likely to move towards price target of Rs.610. We will keep a stoploss at Rs.556 for this trade.