HFCL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | HFCL | Market Cap | 26,610 Cr. | Current Price | 174 ₹ | High / Low | 176 ₹ |
| Stock P/E | 105 | Book Value | 30.9 ₹ | Dividend Yield | 0.06 % | ROCE | 9.26 % |
| ROE | 5.82 % | Face Value | 1.00 ₹ | DMA 50 | 116 ₹ | DMA 200 | 89.1 ₹ |
| Chg in FII Hold | -0.40 % | Chg in DII Hold | -0.50 % | PAT Qtr | 178 Cr. | PAT Prev Qtr | 56.2 Cr. |
| RSI | 80.5 | MACD | 15.7 | Volume | 8,30,93,932 | Avg Vol 1Wk | 7,22,72,403 |
| Low price | 59.8 ₹ | High price | 176 ₹ | PEG Ratio | -458 | Debt to equity | 0.32 |
| 52w Index | 97.7 % | Qtr Profit Var | 345 % | EPS | 1.65 ₹ | Industry PE | 15.4 |
📈 Chart Patterns: HFCL is trading at its 52-week high (₹176), showing strong upward momentum but also risk of exhaustion. The rally from ₹59.8 to ₹176 reflects steep bullishness, with resistance capped at ₹176.
📊 Moving Averages: Current price (₹174) is well above DMA 50 (₹116) and DMA 200 (₹89.1), confirming strong bullish momentum.
📉 RSI: At 80.5, RSI indicates overbought conditions, suggesting potential short-term correction.
📈 MACD: Positive at 15.7, showing bullish crossover and continuation of upward momentum.
📉 Bollinger Bands: Price is at the upper band, signaling overbought conditions and possible pullback.
📊 Volume Trends: Current volume (8.3 Cr.) is above average weekly volume (7.2 Cr.), showing strong participation and heightened momentum.
⚡ Short-Term Momentum Signals: Strong bullish momentum but overbought; correction risk is high.
🎯 Entry Zone: ₹155–₹165 (on pullbacks).
🎯 Exit Zone: ₹176–₹180 (resistance zone).
🔀 Trend Status: Trending upward but overbought; consolidation or reversal possible if momentum fades.
Positive
- Quarterly PAT surged from ₹56.2 Cr. to ₹178 Cr. (+345%).
- Strong trading volumes indicate high market participation.
- Price trading well above DMA 50 and DMA 200 confirms bullish trend.
Limitation
- Extremely high P/E ratio (105) compared to industry average (15.4).
- PEG ratio (-458) suggests unsustainable valuation relative to growth.
- Dividend yield of 0.06% is negligible.
- ROCE (9.26%) and ROE (5.82%) remain modest compared to peers.
Company Negative News
- FII holdings decreased (-0.40%) and DII holdings decreased (-0.50%).
- Overbought RSI signals potential short-term correction.
Company Positive News
- Quarterly profit growth of 345% boosts investor sentiment.
- Strong momentum supported by high trading volumes.
Industry
- Telecom and optical fiber industry is growing with digital infrastructure demand.
- Industry PE of 15.4 highlights HFCL’s premium valuation.
Conclusion
HFCL is technically strong but overbought, making it risky for short-term traders. Entry near ₹155–₹165 is safer, with exit around ₹176–₹180. Momentum favors short-term gains, but stretched valuations and overbought signals warrant caution.
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