HCL Tech shares jump 5% today; can the stock scale past 52-week high level?

Shares of HCL Technologies Ltd rose sharply in Friday's trade after the IT major signed a deal with leading US telecom player Verizon Communications. The stock today surged 4.59 per cent to hit a day high of Rs 1,186.70. At this price, the scrip was just 1.33 away from its one-year high price of Rs 1,202.70, hit on July 5, 2023.

"The partnership combines Verizon's networking power, solutioning, and scale with HCL Tech's market leading Managed Service capabilities to usher in a new era of large-scale wireline service delivery for enterprise customers," the company said.

It would offer customers a best-in-class MNS portfolio, a highly digitised experience with data-driven service models, enhanced efficiency, lifecycle management with frictionless interface, a broad end-to-end partner ecosystem and joint innovation on an integrated platform, it further stated.

On the technical front, support on the counter could be seen at Rs 1,160, followed by Rs 1,125 level. On the higher side, a decisive breach above Rs 1,200 level is required for a potential upside of up to Rs 1,270 in the near term, an analyst said. In contrast, another analyst pointed out that the stock may witness some profit booking.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "For HCL Tech, the near-term target may be visible at around Rs 1,200 level. A decisive breach above Rs 1,200 is needed to indicate a breakout and anticipate for next targets of Rs 1,270 and Rs 1,360 levels. Support is lying near Rs 1,125 zone as of now."

Market expert Ravi Singh said, "HCL Tech share price may witness some profit booking in the coming days. Technical parameters are suggesting a rangebound trend with a downtrend bias. The stock may touch the levels of Rs 1,140 in coming trading sessions."

Ganesh Dongre, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "On the weekly charts, HCL Tech stock is showing momentum to continue on the buy side for the upcoming weeks. If the counter maintains its strength above Rs 1,175, then one can see the next resistance level of Rs 1,260. Traders can 'hold' and 'buy on dip', keeping a stop loss of Rs 1,060 for a target price of 1,260 in the upcoming weeks.

AR Ramachandran from Tips2trades said, "HCL Technologies looks bullish on the daily charts with strong support at Rs 1,160. A daily close above resistance of Rs 1,183 could lead to target of Rs 1,264 in the near term."

Meanwhile, Indian equity benchmarks were in red today, dragged by pharma, healthcare, consumer goods, bank and financial stocks.

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