HAL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | HAL | Market Cap | 2,90,168 Cr. | Current Price | 4,339 ₹ | High / Low | 5,166 ₹ |
| Stock P/E | 32.8 | Book Value | 553 ₹ | Dividend Yield | 0.92 % | ROCE | 33.9 % |
| ROE | 26.0 % | Face Value | 5.00 ₹ | DMA 50 | 4,127 ₹ | DMA 200 | 4,305 ₹ |
| Chg in FII Hold | -0.65 % | Chg in DII Hold | 0.75 % | PAT Qtr | 1,852 Cr. | PAT Prev Qtr | 1,663 Cr. |
| RSI | 62.7 | MACD | 115 | Volume | 8,71,604 | Avg Vol 1Wk | 7,40,971 |
| Low price | 3,479 ₹ | High price | 5,166 ₹ | PEG Ratio | 1.84 | Debt to equity | 0.00 |
| 52w Index | 51.0 % | Qtr Profit Var | 29.3 % | EPS | 132 ₹ | Industry PE | 66.6 |
📉 Chart Patterns & Trend: HAL is trading above both its 50 DMA (₹4,127) and 200 DMA (₹4,305), confirming a bullish structure. Current price (₹4,339) is well above support levels, suggesting sustained strength with potential to retest the 52-week high (₹5,166).
📊 Momentum Indicators: RSI at 62.7 indicates healthy momentum, not yet overbought. MACD at 115 confirms strong bullish crossover. Bollinger Bands show price moving toward the upper band, signaling continued upside potential.
📈 Volume Trends: Current volume (8.7 lakh) is above average weekly volume (7.4 lakh), reflecting strong participation and accumulation interest.
🎯 Entry Zone: ₹4,300 – ₹4,350 (near support, favorable risk-reward).
🚪 Exit Zone: ₹4,950 – ₹5,050 (near resistance and 52-week high zone).
🔎 Status: The stock is trending upward with bullish signals. Short-term consolidation possible, but overall trend remains positive above ₹4,300.
Positive
- Strong ROE (26.0%) and ROCE (33.9%) highlight operational efficiency.
- Quarterly PAT growth of 29.3% supports earnings momentum.
- EPS of ₹132 provides valuation strength.
- Zero debt ensures financial stability.
Limitation
- P/E of 32.8 is below industry average (66.6) but still elevated.
- Dividend yield of 0.92% is modest.
- Stock approaching resistance near 52-week high, limiting immediate upside.
Company Negative News
- FII holdings decreased (-0.65%), showing reduced foreign investor confidence.
Company Positive News
- DII holdings increased (+0.75%), reflecting domestic institutional support.
- Quarterly PAT improved from ₹1,663 Cr to ₹1,852 Cr.
Industry
- Aerospace & defense sector trading at high valuations (Industry PE: 66.6).
- Sector outlook remains strong with government defense spending and export opportunities.
Conclusion
✅ HAL is technically strong, trading above key moving averages with bullish momentum. Fundamentals remain solid with strong ROE, ROCE, and earnings growth. Short-term traders may consider entry near ₹4,300–₹4,350 with exits around ₹4,950–₹5,050. Long-term investors can hold, but should monitor resistance near ₹5,166 for breakout confirmation.
Would you like me to extend this into a peer benchmarking overlay with Bharat Electronics, Cochin Shipyard, and Mazagon Dock to highlight HAL’s relative strength in the defense sector?