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HSCL - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 28 May 26, 08:26 pm

Technical Rating: 4.0

Stock Code HSCL Market Cap 30,578 Cr. Current Price 607 ₹ High / Low 654 ₹
Stock P/E 40.9 Book Value 91.6 ₹ Dividend Yield 0.13 % ROCE 22.5 %
ROE 18.1 % Face Value 1.00 ₹ DMA 50 547 ₹ DMA 200 493 ₹
Chg in FII Hold 0.23 % Chg in DII Hold 0.13 % PAT Qtr 186 Cr. PAT Prev Qtr 195 Cr.
RSI 60.2 MACD 17.0 Volume 87,96,940 Avg Vol 1Wk 80,19,265
Low price 418 ₹ High price 654 ₹ PEG Ratio 0.85 Debt to equity 0.16
52w Index 79.7 % Qtr Profit Var 17.4 % EPS 14.9 ₹ Industry PE 46.7

📈 Chart Patterns: HSCL is trading near its short-term resistance zone (₹607–₹654). The broader structure shows strong recovery from lows (₹418), with price action forming higher highs and higher lows.

📊 Moving Averages: Current price (₹607) is above DMA 50 (₹547) and DMA 200 (₹493), confirming bullish momentum and medium-term strength.

📉 RSI: At 60.2, RSI indicates moderately strong momentum, but nearing overbought territory.

📈 MACD: Positive at 17.0, showing bullish crossover and continuation of upward momentum.

📉 Bollinger Bands: Price is near the upper band, reflecting bullish momentum but risk of short-term pullback.

📊 Volume Trends: Current volume (87.9L) is above average weekly volume (80.1L), showing strong participation and conviction in the rally.

Short-Term Momentum Signals: Bullish bias with strong momentum; breakout possible if price sustains above ₹620 with volume support.

🎯 Entry Zone: ₹590–₹607 (support region).

🎯 Exit Zone: ₹640–₹654 (resistance zone).

🔀 Trend Status: Trending upward with bullish undertone; consolidation possible near resistance.


Positive

  • Strong ROCE (22.5%) and ROE (18.1%) highlight efficient capital usage.
  • EPS at ₹14.9 supports valuation stability.
  • Price trading above both DMA 50 and DMA 200 confirms bullish trend.
  • FII (+0.23%) and DII (+0.13%) holdings increased, showing investor confidence.

Limitation

  • Dividend yield at 0.13% is negligible.
  • Quarterly PAT declined slightly (₹195 Cr. to ₹186 Cr.).
  • High P/E ratio (40.9) compared to industry PE (46.7) indicates premium valuation.

Company Negative News

  • Slight decline in quarterly PAT.
  • Valuation remains stretched relative to earnings growth.

Company Positive News

  • Quarterly profit variation (+17.4%) shows earnings momentum.
  • Strong EPS and efficiency ratios support long-term stability.
  • Stock trading near 52-week high (₹654) reflects bullish sentiment.

Industry

  • Chemicals industry trades at a P/E of 46.7, close to HSCL’s valuation.
  • Sector outlook remains positive with demand growth supporting momentum.

Conclusion

HSCL is trending upward with bullish undertones. Short-term traders may consider entry around ₹590–₹607 with exit near ₹640–₹654. Long-term investors should monitor earnings growth and sector demand before fresh accumulation.

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