HCLTECH: IT STOCK SHOWING RELATIVE STRENGTH

HCL Technologies is on the radar today after gaining around 1.2% on September 25, even as the broader Nifty IT index remained under pressure. At noon, HCLTech was trading around ₹1,258–₹1,259, while Infosys and several other IT names were moving lower. The relative strength is interesting because the IT sector is facing a difficult macro backdrop. Crude oil remains above $100 per barrel, while higher US bond yields are increasing concerns around inflation, interest rates and technology spending. Nifty IT has declined for six consecutive sessions and was down around 0.6% today, taking the six-session decline to roughly 4%. HCLTech's positive move therefore deserves attention from a price-action perspective. There is also a company-specific angle. HCLTech recently announced the launch of its Advanced Semiconductor Lab with an investment of ₹185 crore. The company has also announced several AI and technology-related initiatives, including HCLTech Pulse and an AI-led transformation engagement. However, announcements alone do not determine earnings. The key variables remain deal wins, revenue growth, margins, discretionary technology spending and the company's ability to convert AI demand into commercial contracts. Technical setup: ₹1,260 is the immediate zone to watch. A sustained move above ₹1,260 with strong volume could indicate that buyers are attempting to build momentum despite weakness across the IT sector. • ₹1,260 breakout zone • ₹1,240–₹1,245 support • IT-sector relative strength • Deal wins and order pipeline • Margin trajectory • AI-led revenue opportunities • US technology spending The key question is whether HCLTech can continue outperforming the IT index. One strong session is not enough to establish a trend, but sustained relative strength with volume would make the setup more interesting.