HAL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.7

📉 HAL is currently consolidating with weakening momentum indicators, though long-term fundamentals remain strong.

📊 Technical Analysis

• Trend Status: Consolidating — price is range-bound between ₹4,534 and ₹5,166.
• Moving Averages: Price ₹4,694 is below 50-DMA (₹4,730) but above 200-DMA (₹4,534), indicating short-term weakness but long-term support.
• RSI (41.9): Near oversold zone, suggesting limited momentum and potential for bounce.
• MACD (-7.23): Bearish crossover, confirming short-term downtrend.
• Bollinger Bands: Price near lower band, indicating possible support around ₹4,650.
• Volume: Slightly above weekly average, but no strong breakout signal.

🎯 Entry & Exit Zones

• Support Levels: ₹4,534 (200-DMA), ₹4,650
• Resistance Levels: ₹4,730 (50-DMA), ₹4,850, ₹5,166
• Optimal Entry: ₹4,540–₹4,600 (near support)
• Exit Target: ₹4,850–₹5,100 (near resistance)

✅ Positive

• Strong ROCE (33.9%) and ROE (26%) reflect excellent capital efficiency.
• Zero debt-to-equity ratio indicates a clean balance sheet.
• EPS of ₹123 and consistent long-term performance.

⚠️ Limitation

• MACD and RSI show weakening momentum, limiting short-term upside.
• Stock P/E (38.1) is higher than industry average, suggesting premium valuation.
• PEG ratio of 2.14 indicates moderate overvaluation relative to growth.

📉 Company Negative News

• Quarterly PAT dropped from ₹3,958 Cr to ₹1,377 Cr, a significant decline.
• Minor reduction in DII holdings (-0.03%) may reflect cautious sentiment.

📈 Company Positive News

• FII holdings increased by 0.10%, showing foreign investor confidence.
• Strong long-term growth potential with 77.7% rise in 52-week index.
• Government support for defense sector remains a tailwind.

🏭 Industry

• Aerospace & Defense sector is gaining traction with rising strategic investments.
• Industry P/E (67.2) is significantly higher than HAL’s, indicating relative undervaluation.

🧾 Conclusion

• HAL is consolidating with short-term bearish signals but strong long-term fundamentals.
• Entry near ₹4,540–₹4,600 could offer value with targets around ₹4,850–₹5,100.
• Investors should monitor earnings recovery and momentum indicators before aggressive positioning.

Sources: WalletInvestor Forecast

WalletInvestor.com

, StockPriceArchive

stockpricearchive.com

, SharePrice-Target.com

shareprice-target.com