HBLENGINE - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.7

📊 Chart Patterns: HBLENGINE is trading below its 50 DMA (868 ₹) but above its 200 DMA (747 ₹), reflecting short-term weakness but long-term support. The price has corrected from its 52-week high (1,122 ₹) and is consolidating near mid-range levels.

📈 Moving Averages:

- 50 DMA: 868 ₹ (resistance)

- 200 DMA: 747 ₹ (support)

The stock is caught between these averages, indicating sideways consolidation with bearish bias in the short term.

📉 RSI: 43.2 → Neutral to bearish, closer to oversold territory, suggesting weak momentum but potential for bounce.

📉 MACD: -36.0 → Strong bearish crossover, confirming downward momentum.

📊 Bollinger Bands: Price near lower band, showing oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (1.06 Cr) is significantly higher than 1-week average (37.7 lakh), indicating strong activity, possibly due to institutional moves or accumulation near support.

🎯 Momentum Signals:

- Short-term bias: Bearish with oversold signals

- Entry Zone: 820–840 ₹ (near support levels)

- Exit Zone: 860–880 ₹ (near 50 DMA resistance)

- Breakout potential above 880 ₹ could target 920–950 ₹.

📌 Trend Status: Consolidating with bearish undertone. A decisive move above 868–880 ₹ is needed to confirm reversal into an uptrend.

Positive

• Strong ROCE (27.0%) and ROE (20.2%) highlight efficient capital usage.
• Quarterly PAT growth (400 Cr vs 142 Cr) shows robust earnings momentum (+397%).
• EPS of 22.9 ₹ supports valuation strength.
• Low debt-to-equity ratio (0.04) ensures financial stability.
• FII holdings increased (+2.27%) and DII holdings increased (+0.28%), reflecting institutional confidence.

Limitation

• Stock trading below 50 DMA indicates short-term weakness.
• RSI and MACD show bearish momentum.
• Dividend yield is low (0.12%), limiting income appeal.
• Book value (70.4 ₹) is far below current price, suggesting premium valuation.

Company Negative News

• No specific negative headlines, but technical weakness persists with MACD and RSI showing bearish signals.

Company Positive News

• Quarterly profit growth (+397%) highlights strong operational performance.
• Institutional inflows (FII +2.27%, DII +0.28%) support sentiment.

Industry

• Industry PE: 28.9, lower than HBLENGINE’s PE of 35.8, suggesting mild overvaluation.
• Engineering and battery sector remains resilient, supported by industrial demand and defense applications.

Conclusion

⚖️ HBLENGINE is consolidating with short-term weakness but strong long-term fundamentals. Entry near 820–840 ₹ offers accumulation opportunity, while resistance lies at 860–880 ₹. A breakout above 880 ₹ could extend momentum towards 920–950 ₹. Investors may accumulate cautiously for long-term growth, while traders should wait for confirmation above resistance.