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HAPPSTMNDS - Technical Analysis with Chart Patterns & Indicators

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Rating: 2.6

Last Updated Time : 04 May 26, 11:57 am

Technical Rating: 2.6

Stock Code HAPPSTMNDS Market Cap 5,681 Cr. Current Price 373 ₹ High / Low 675 ₹
Stock P/E 28.2 Book Value 102 ₹ Dividend Yield 1.61 % ROCE 13.9 %
ROE 12.3 % Face Value 2.00 ₹ DMA 50 386 ₹ DMA 200 471 ₹
Chg in FII Hold 0.05 % Chg in DII Hold -0.63 % PAT Qtr 25.4 Cr. PAT Prev Qtr 56.2 Cr.
RSI 47.0 MACD -3.33 Volume 5,94,661 Avg Vol 1Wk 5,34,304
Low price 305 ₹ High price 675 ₹ PEG Ratio 564 Debt to equity 0.80
52w Index 18.4 % Qtr Profit Var -26.1 % EPS 11.1 ₹ Industry PE 21.6

📉 Chart Patterns & Trend: HAPPSTMNDS is trading below both its 50 DMA (₹386) and 200 DMA (₹471), confirming a bearish structure. Current price (₹373) is close to support at ₹305, suggesting weakness with limited upside unless a rebound occurs.

📊 Momentum Indicators: RSI at 47.0 indicates neutral momentum, while MACD at -3.33 confirms bearish crossover. Bollinger Bands show price drifting near the lower band, signaling continued weakness.

📈 Volume Trends: Current volume (5.95 lakh) is slightly above average weekly volume (5.34 lakh), reflecting mild participation but not strong accumulation.

🎯 Entry Zone: ₹350 – ₹365 (near support, potential accumulation zone).

🚪 Exit Zone: ₹385 – ₹395 (near 50 DMA resistance; profit-taking zone if rebound occurs).

🔎 Status: The stock is consolidating near support but remains in a broader downtrend. Sustained recovery requires price action above ₹470 (200 DMA).


Positive

  • Dividend yield of 1.61% provides steady income.
  • Book value of ₹102 offers valuation support.
  • FII holdings increased slightly (+0.05%), showing marginal foreign investor confidence.

Limitation

  • High PEG ratio (564) signals extreme overvaluation relative to growth.
  • Debt-to-equity ratio of 0.80 indicates moderate leverage risk.
  • Weak ROE (12.3%) and ROCE (13.9%) compared to industry peers.
  • Technical weakness with price below both 50 & 200 DMA.

Company Negative News

  • DII holdings decreased (-0.63%), showing reduced domestic institutional support.
  • Quarterly PAT dropped from ₹56.2 Cr to ₹25.4 Cr (-26.1%).

Company Positive News

  • Stable EPS at ₹11.1 supports earnings visibility.
  • Dividend yield remains attractive for income-focused investors.

Industry

  • IT services sector facing margin pressures due to global demand slowdown.
  • Industry PE at 21.6 highlights competitive valuation environment.

Conclusion

⚠️ HAPPSTMNDS is technically weak, trading below key moving averages with bearish momentum. Fundamentals are modest, but valuations are stretched. Short-term traders may consider entry near ₹350–₹365 with exits around ₹385–₹395. Long-term investors should wait for confirmation above ₹470 before fresh accumulation.

Would you like me to extend this into a swing-trade peer overlay (Infosys, TCS, Coforge) so you can benchmark HAPPSTMNDS against sector leaders?

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