Amit Harchekar of A Plus Analytics told CNBC-TV18, "Three days back HCL Tech has already given a strong reversal signal form a bearish belt hold line on the candlesticks. We have seen a strong buying interest even from FIIs. The stock has been rallying since last couple of months. Right now we believe this stock is likely to come under selling pressure because there the stock is unable to form an higher high on a daily basis. Looking at the pattern and historical evidences we believe this pattern indicates there is a reversal which has happened on the weekly chart."
"There is a good possibility that the stock could retrace towards the zone of Rs 1,900 in the coming days. From a technically perspective we believe this is a good level to initiate fresh short positions at these levels. Keeping a stop loss of around Rs 2,070 we can easily expectthe stock to move lower and test Rs 1,900 in the coming days. We believe this becomes a very good shorting opportunity even as a contrarian play in this sideways market," he said.
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