HSCL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | HSCL | Market Cap | 30,664 Cr. | Current Price | 608 ₹ | High / Low | 624 ₹ |
| Stock P/E | 40.9 | Book Value | 91.6 ₹ | Dividend Yield | 0.10 % | ROCE | 22.6 % |
| ROE | 18.1 % | Face Value | 1.00 ₹ | DMA 50 | 490 ₹ | DMA 200 | 472 ₹ |
| Chg in FII Hold | 0.23 % | Chg in DII Hold | 0.13 % | PAT Qtr | 186 Cr. | PAT Prev Qtr | 195 Cr. |
| RSI | 86.7 | MACD | 34.8 | Volume | 1,40,03,816 | Avg Vol 1Wk | 1,42,39,069 |
| Low price | 407 ₹ | High price | 624 ₹ | PEG Ratio | 0.85 | Debt to equity | 0.16 |
| 52w Index | 92.5 % | Qtr Profit Var | 17.4 % | EPS | 14.9 ₹ | Industry PE | 47.0 |
📉 Chart Patterns & Trend: HSCL is trading well above both its 50 DMA (₹490) and 200 DMA (₹472), confirming a strong uptrend. Current price (₹608) is near its 52-week high (₹624), suggesting bullish momentum but also risk of overextension.
📊 Momentum Indicators: RSI at 86.7 signals extreme overbought conditions. MACD at 34.8 confirms strong bullish momentum. Bollinger Bands show price hugging the upper band, indicating heightened volatility and possible short-term correction.
📈 Volume Trends: Current volume (1.40 Cr) is close to average weekly volume (1.42 Cr), showing steady participation but not aggressive accumulation.
🎯 Entry Zone: ₹560 – ₹580 (on pullbacks, safer entry after correction).
🚪 Exit Zone: ₹620 – ₹630 (near resistance and 52-week high zone).
🔎 Status: The stock is trending upward but overheated. Likely to consolidate or reverse near resistance unless supported by fresh buying momentum.
Positive
- Strong ROE (18.1%) and ROCE (22.6%) highlight efficient capital use.
- PEG ratio of 0.85 suggests fair valuation relative to growth.
- Quarterly profit growth (+17.4%) supports earnings momentum.
- Trading above both 50 & 200 DMA confirms bullish trend.
Limitation
- High RSI (86.7) signals extreme overbought conditions.
- Dividend yield of 0.10% is negligible.
- P/E of 40.9 is slightly below industry average (47.0) but still elevated.
- Volume participation is steady but not expanding, limiting breakout strength.
Company Negative News
- Quarterly PAT declined slightly (₹186 Cr vs ₹195 Cr previous quarter).
- Overbought technical indicators suggest potential short-term correction.
Company Positive News
- FII (+0.23%) and DII (+0.13%) holdings increased, showing investor confidence.
- EPS of ₹14.9 supports valuation stability.
Industry
- Chemicals industry trades at a P/E of 47.0, close to HSCL’s valuation.
- Sector outlook remains positive with demand growth.
Conclusion
⚠️ HSCL is fundamentally stable and technically strong but currently overbought. Entry near ₹560–₹580 is advisable on pullbacks. For current holders, exit near ₹620–₹630 resistance is recommended to lock in gains before potential correction.
Would you like me to prepare a sector overlay comparison with peers like Deepak Nitrite, Aarti Industries, and Tata Chemicals to benchmark HSCL’s relative strength?