HSCL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📈 HSCL is showing signs of a bullish reversal with strengthening momentum indicators and favorable support levels.

📊 Technical Analysis

• Trend Status: Reversing — price is rebounding from recent lows and crossing key moving averages.
• Moving Averages: Price ₹475 is above both 50-DMA (₹467) and 200-DMA (₹469), indicating bullish crossover.
• RSI (60.7): Bullish zone, suggesting upward momentum with room to rise.
• MACD (5.58): Positive crossover, confirming short-term bullish trend.
• Bollinger Bands: Price approaching upper band, signaling strength but potential near-term resistance.
• Volume: Current volume (12.9L) is below weekly average (19.8L), indicating cautious accumulation.

🎯 Entry & Exit Zones

• Support Levels: ₹467 (50-DMA), ₹460
• Resistance Levels: ₹485, ₹498, ₹507
• Optimal Entry: ₹468–₹472 (near moving average support)
• Exit Target: ₹498–₹507 (near resistance zone)

✅ Positive

• Strong ROCE (22.6%) and ROE (16.8%) reflect solid operational efficiency.
• PEG ratio of 0.33 indicates undervaluation relative to growth potential.
• Quarterly PAT increased to ₹187 Cr from ₹183 Cr, showing earnings growth.

⚠️ Limitation

• Dividend yield is low (0.12%), limiting passive income appeal.
• Volume trend is declining, suggesting limited conviction in recent price move.
• Minor drop in DII holdings (-1.62%) may reflect cautious domestic sentiment.

📉 Company Negative News

• Stock still 22% below its 52-week high of ₹607, indicating recovery phase.
• Volume below average despite bullish indicators, suggesting weak participation.

📈 Company Positive News

• FII holdings increased by 0.54%, showing improving foreign investor confidence.
• Quarterly profit growth of 39% signals strong operational performance.

🏭 Industry

• Specialty chemicals sector remains robust with strong export demand and margin resilience.
• Industry P/E (37.8) is slightly higher than HSCL’s P/E (35.0), indicating fair valuation.

🧾 Conclusion

• HSCL is technically reversing with bullish momentum and favorable valuation metrics.
• Short-term traders may consider entry near ₹470 with targets around ₹498–₹507.
• Long-term investors may benefit from strong fundamentals and growth trajectory.

Sources: ET Money Technicals

ET Money

, TradingView

TradingView

, StockPriceArchive

stockpricearchive.com