HCL Technologies breaks support at Rs 1,027, may test Rs 966

Shares of HCL Technologies Ltd fell as much as 2.32 per cent and has broken below a support at Rs 1,026.63.

This support at Rs 1,026.63 is identified as the 23.6 per cent Fibonacci retracement level of the uptrend from the June 29, 2016 low to the September 25, 2018 high.

The stock also broke below its 50-day exponential moving average (EMA). A close below the 23.6 per cent level may lead to a further fall up to the next support at Rs 965.75, the 38.2 per cent retracement level, though some support is also expected at the 200-day EMA.

The stock’s wave pattern suggests it has completed a five-wave uptrend that started on June 29, 2016 and a three-wave downtrend has started.