HBLENGINE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.5

📈 Technical Analysis

• 📈 Chart Pattern: HBLENGINE is in a strong uptrend, forming higher highs and higher lows, with price nearing its 52-week high of 1,034 ₹.
• 📈 Moving Averages: Price is well above both 50-DMA (865 ₹) and 200-DMA (691 ₹), confirming bullish momentum.
• 📈 RSI (70.9): In overbought zone, indicating strong momentum but caution for short-term pullback.
• 📈 MACD (43.2): Strong positive crossover, reinforcing bullish trend strength.
• 📈 Bollinger Bands: Price near upper band, suggesting breakout potential with elevated volatility.
• 📉 Volume Trend: Current volume (9.11L) is below 1-week average (14.05L), indicating reduced participation — a cautionary signal.

📍 Entry & Exit Zones

• ✅ Entry Zone: 880 ₹ – 910 ₹ (near breakout retest and psychological support)
• 🚪 Exit Zone: 1,020 ₹ – 1,040 ₹ (resistance from 52-week high)

📊 Trend Status

• 📈 Current Trend: Trending upward
• ⚠️ Bias: Bullish with caution due to high RSI and declining volume

✅ Positive

• Strong ROCE (27.0%) and ROE (20.2%) reflect efficient capital deployment.
• FII and DII holdings increased by 2.27% and 0.28%, indicating strong institutional confidence.
• Quarterly PAT surged from 51.8 Cr. to 142 Cr., a 90.4% jump.
• PEG ratio (1.66) supports valuation relative to growth.
• Price above key moving averages and strong MACD signal reinforce bullish sentiment.

⚠️ Limitation

• RSI above 70 — potential for short-term correction.
• Volume below average — rally may lack conviction.
• High P/E (81.2) compared to industry PE (30.8) suggests premium valuation.
• Low dividend yield (0.10%) limits income appeal.

📉 Company Negative News

• Valuation concerns due to high P/E and low yield may deter conservative investors.

📈 Company Positive News

• Strong earnings growth and rising institutional interest support bullish outlook.
• Low debt-to-equity ratio (0.04) reflects financial prudence.

🏭 Industry

• Battery and energy storage sector is gaining traction with EV and renewable energy demand.
• HBLENGINE trades well above industry PE (81.2 vs 30.8), reflecting growth expectations and premium positioning.

🧾 Conclusion

• HBLENGINE is trending upward with strong technical indicators and robust earnings momentum.
• Short-term traders may consider entries near 900 ₹ and exits near 1,030 ₹.
• Long-term investors should monitor valuation and volume strength before adding exposure.