HAL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | HAL | Market Cap | 2,92,814 Cr. | Current Price | 4,377 ₹ | High / Low | 5,166 ₹ |
| Stock P/E | 34.7 | Book Value | 553 ₹ | Dividend Yield | 0.91 % | ROCE | 33.9 % |
| ROE | 26.0 % | Face Value | 5.00 ₹ | DMA 50 | 4,471 ₹ | DMA 200 | 4,505 ₹ |
| Chg in FII Hold | -1.14 % | Chg in DII Hold | 1.04 % | PAT Qtr | 1,663 Cr. | PAT Prev Qtr | 1,377 Cr. |
| RSI | 46.4 | MACD | 13.1 | Volume | 44,27,133 | Avg Vol 1Wk | 21,29,959 |
| Low price | 3,046 ₹ | High price | 5,166 ₹ | PEG Ratio | 1.95 | Debt to equity | 0.00 |
| 52w Index | 62.8 % | Qtr Profit Var | 11.9 % | EPS | 126 ₹ | Industry PE | 56.2 |
📊 Chart & Trend Analysis: HAL is trading at ₹4,377, slightly below its 50 DMA (₹4,471) and 200 DMA (₹4,505), indicating short-term weakness but strong medium-term support. RSI at 46.4 suggests neutral momentum. MACD at 13.1 reflects a mild bullish crossover. Current volume (44.2L) is significantly higher than the weekly average (21.3L), showing strong participation. Bollinger Bands indicate price near mid-range, suggesting consolidation with bullish bias.
📈 Momentum Signals: Short-term momentum is mildly positive, supported by MACD bullish crossover and strong volume. RSI neutrality signals consolidation rather than aggressive trend continuation.
🎯 Entry Zone: ₹4,350 – ₹4,400 (near immediate support)
🚪 Exit Zone: ₹4,500 – ₹4,600 (near resistance at 200 DMA)
🔎 Trend Status: Consolidating with bullish bias. Sustained trade above ₹4,500 could trigger fresh uptrend towards ₹4,800–₹5,000, while breakdown below ₹4,350 may signal reversal.
Positive
- Strong ROCE (33.9%) and ROE (26.0%) highlight efficient capital use.
- Debt-free balance sheet ensures financial stability.
- Quarterly PAT growth from ₹1,377 Cr. to ₹1,663 Cr. shows earnings momentum.
- EPS of ₹126 reflects strong profitability.
- DII holding increased by 1.04%, reflecting domestic institutional support.
Limitation
- Stock trading below both 50 DMA and 200 DMA signals short-term weakness.
- High P/E ratio (34.7) compared to industry average (56.2) suggests premium valuation but still elevated.
- Dividend yield of 0.91% is modest.
Company Negative News
- Decline in FII holding (-1.14%) signals reduced foreign investor confidence.
Company Positive News
- Quarterly profit variation of 11.9% shows strong earnings growth.
- High trading volume indicates strong market interest.
Industry
- Aerospace and defense sector remains resilient with government contracts and long-term demand visibility.
- Industry P/E at 56.2 highlights premium valuations across the sector.
Conclusion
⚖️ HAL is consolidating with a bullish bias. Entry near ₹4,350–₹4,400 offers favorable risk-reward, while exits near ₹4,500–₹4,600 provide short-term profit booking. Strong fundamentals, debt-free balance sheet, and rising profits support long-term holding, but short-term weakness and reduced FII confidence warrant cautious positioning.
Would you like me to extend this into a peer benchmarking overlay (BEL, BEML, Mazagon Dock) so you can compare HAL’s relative strength within the defense and aerospace basket?