HSCL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.0

📊 Chart Patterns: HSCL is trading above both its 50 DMA (459 ₹) and 200 DMA (465 ₹), showing strength. Current price (478 ₹) is near short-term support, with resistance around 500–520 ₹. Broader range remains 460–520 ₹.

📈 Moving Averages: Price above both averages indicates bullish undertone. Sustaining above 465 ₹ confirms upward bias.

📉 RSI: At 52.4, RSI is neutral, suggesting balanced momentum with room for further upside.

📈 MACD: Positive at 3.46, signaling bullish momentum and potential continuation of uptrend.

📊 Bollinger Bands: Price is near the mid-band, suggesting consolidation with potential breakout if volume rises.

📉 Volume Trends: Current volume (4,86,039) is below average weekly volume (7,07,813), indicating lack of strong buying conviction. A rise in volume is needed for breakout confirmation.

📌 Short-term Momentum Signals: Neutral to bullish — RSI stable, MACD positive. Breakout above 500 ₹ could push toward 520–540 ₹.

🎯 Optimal Entry Zone: 465–475 ₹ (near support).

🎯 Optimal Exit Zone: 510–520 ₹ (near resistance).

📈 Trend Status: The stock is consolidating with a bullish bias, awaiting volume-driven breakout.

Positive

• Strong ROCE (22.6%) and ROE (16.8%) reflect efficient capital utilization.
• PEG ratio of 0.34 indicates attractive growth potential relative to valuation.
• Quarterly profit growth (39.0%) highlights strong operational performance.
• EPS of 13.6 ₹ supports earnings visibility.

Limitation

• Dividend yield is very low (0.13%), limiting passive income appeal.
• Stock P/E (36.0) is slightly above industry PE (35.3), suggesting fair to expensive valuation.
• Volume participation is weak compared to average, reducing breakout conviction.

Company Negative News

• DII holding decreased by -1.65%, showing reduced domestic institutional support.

Company Positive News

• FII holding increased by 0.42%, reflecting foreign investor confidence.
• PAT improved (187 Cr. vs 183 Cr.), showing earnings growth.

Industry

• Industry PE at 35.3 is slightly lower than HSCL’s PE, suggesting moderate overvaluation.
• Sector outlook remains positive with strong demand for specialty chemicals and industrial growth.

Conclusion

⚖️ HSCL shows solid fundamentals with strong profit growth, low PEG ratio, and healthy ROCE/ROE. Technically, the stock is consolidating above key averages with bullish bias. Entry is favorable near 465–475 ₹ with exit around 510–520 ₹. Watch for volume expansion to confirm breakout toward higher levels.