HAL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | HAL | Market Cap | 2,65,240 Cr. | Current Price | 3,961 ₹ | High / Low | 5,166 ₹ |
| Stock P/E | 30.0 | Book Value | 553 ₹ | Dividend Yield | 1.01 % | ROCE | 33.9 % |
| ROE | 26.0 % | Face Value | 5.00 ₹ | DMA 50 | 4,158 ₹ | DMA 200 | 4,385 ₹ |
| Chg in FII Hold | -1.14 % | Chg in DII Hold | 1.04 % | PAT Qtr | 1,852 Cr. | PAT Prev Qtr | 1,663 Cr. |
| RSI | 43.3 | MACD | -70.4 | Volume | 8,90,969 | Avg Vol 1Wk | 13,20,920 |
| Low price | 3,578 ₹ | High price | 5,166 ₹ | PEG Ratio | 1.69 | Debt to equity | 0.00 |
| 52w Index | 24.1 % | Qtr Profit Var | 29.3 % | EPS | 132 ₹ | Industry PE | 54.2 |
📊 Chart & Trend Analysis: HAL is trading at ₹3,961, below both its 50 DMA (₹4,158) and 200 DMA (₹4,385), reflecting short-term weakness. RSI at 43.3 indicates neutral-to-weak momentum, while MACD at -70.4 confirms bearish crossover. Bollinger Bands show price leaning toward the lower band, suggesting selling pressure. Volume is below the weekly average, indicating reduced participation.
📈 Momentum Signals: Short-term momentum is weak, with MACD negative and RSI neutral. Consolidation is likely before a breakout attempt. Oversold conditions are not yet visible, but price action suggests sideways movement with bearish bias.
💹 Entry & Exit Zones:
- Optimal Entry: ₹3,900–₹3,950 (near support zone)
- Stop-Loss: ₹3,850 (below strong support)
- Exit Zone: ₹4,150–₹4,200 (near 50 DMA resistance)
- Major Resistance: ₹4,385–₹4,400 (200 DMA)
📉 Trend Status: The stock is consolidating with bearish bias, capped by moving averages and weak momentum indicators.
Positive
- Strong ROCE (33.9%) and ROE (26.0%) highlight efficient capital use.
- Debt-free balance sheet ensures financial stability.
- Quarterly PAT improved to ₹1,852 Cr. from ₹1,663 Cr., showing earnings growth.
- EPS of ₹132 reflects strong profitability.
Limitation
- P/E of 30.0 is lower than industry average (54.2), but still indicates premium valuation relative to fundamentals.
- PEG ratio of 1.69 suggests moderately expensive growth prospects.
- Price trading below both 50 DMA and 200 DMA shows weak technical strength.
Company Negative News
- Decline in FII holding (-1.14%) shows reduced foreign investor confidence.
- Stock corrected from its 52-week high of ₹5,166, reflecting selling pressure.
Company Positive News
- DII holdings increased (+1.04%), showing domestic institutional support.
- Quarterly profit variation of 29.3% highlights strong operational improvement.
Industry
- Aerospace and defense industry benefits from government contracts and rising defense expenditure.
- Industry PE at 54.2 highlights relatively expensive peers compared to HAL’s P/E of 30.0.
Conclusion
⚖️ HAL is technically consolidating with bearish bias, trading below key moving averages. Traders may consider entry near ₹3,900–₹3,950 with strict stop-loss at ₹3,850, targeting ₹4,150–₹4,200 in the short term. Long-term investors may find value given strong fundamentals, debt-free balance sheet, and robust profitability, but should monitor momentum indicators for confirmation of reversal.
Would you like me to extend this into a peer benchmarking overlay (e.g., Bharat Electronics, Cochin Shipyard, Mazagon Dock) so you can evaluate sector rotation opportunities alongside HAL?