HINDPETRO - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📊 Chart Patterns: Hindustan Petroleum is trading near resistance (495 ₹) with current price at 470 ₹. The stock has shown strong recovery from its 52-week low (288 ₹). Support lies at 455–460 ₹, while resistance is at 490–495 ₹.

📈 Moving Averages: Price is above both 50 DMA (456 ₹) and 200 DMA (421 ₹), confirming medium-term bullish strength.

📉 RSI: At 54.0, RSI is neutral, suggesting balanced momentum with room for further upside.

📉 MACD: Slightly negative at -0.37, indicating weak short-term momentum and possible consolidation.

📊 Bollinger Bands: Price is near the mid-band, suggesting consolidation within the current range.

📉 Volume Trends: Current volume (12,64,823) is below average weekly volume (21,22,022), showing reduced participation and lack of strong buying conviction.

📌 Short-term Momentum Signals: Neutral to weak — RSI stable but MACD negative. Sustained move above 480–485 ₹ could trigger momentum toward 495 ₹.

🎯 Optimal Entry Zone: 455–465 ₹ (near support).

🎯 Optimal Exit Zone: 490–495 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a bullish undertone, awaiting breakout confirmation.

Positive

• Strong EPS of 68.5 ₹ highlights robust earnings power.
• Dividend yield of 2.28% provides attractive shareholder returns.
• Quarterly profit variation of 507% shows significant earnings recovery.
• FII holding increased by 0.93%, reflecting foreign investor confidence.

Limitation

• Debt-to-equity ratio of 1.16 indicates high leverage.
• ROCE (11.8%) is modest compared to peers.
• Volume participation is weak compared to average, reducing breakout conviction.

Company Negative News

• PAT declined (3,830 Cr. vs 4,371 Cr.), showing earnings pressure.
• DII holding decreased by -0.92%, reflecting reduced domestic institutional support.

Company Positive News

• EPS remains strong despite PAT decline, supporting valuation strength.
• FII inflows highlight global investor confidence in the company.

Industry

• Industry PE at 11.3 is higher than Hindustan Petroleum’s PE (6.87), suggesting undervaluation.
• Oil & gas sector outlook remains volatile but supported by demand recovery and government policies.

Conclusion

⚖️ Hindustan Petroleum is fundamentally undervalued with strong EPS and dividend yield, but faces short-term technical weakness. The stock is consolidating near support with neutral RSI and weak MACD. Entry is favorable near 455–465 ₹ with cautious exit around 490–495 ₹. Long-term investors may benefit from undervaluation, while short-term traders should wait for breakout above 485 ₹.