- HFCL shares rose 228% in six months and 15% in three trading sessions
- Stock hit 5% upper circuit for three consecutive sessions at Rs 237.95
- Price formed double-top near Rs 255-256, then corrected to key support zone
HFCL share price have delivered a sharp rally over the past six months, rising around 228%, while the stock has gained nearly 15% in just three trading sessions. The recent move has come after a technical correction, with buying interest emerging around key support levels.
On Thursday, HFCL share price was locked in at 5% upper circuit of Rs 237.95 apiece on the BSE. The telecom stock hit upper circuit for the third consecutive trading session.
According to Hitesh Tailor, Technical Research Analyst at Choice Broking, HFCL continues to maintain its broader uptrend, with the daily chart showing a sustained higher high-higher low structure.
HFCL stock price had recently formed a double-top pattern around the Rs 255-256 resistance zone, leading to a technical retracement. However, the decline found buying support between the 0.618 and 0.79 Fibonacci retracement levels.
Tailor said this support zone also coincided with the stock's 100-day exponential moving average, strengthening the technical significance of the area.
HFCL subsequently rebounded strongly and formed a daily bullish engulfing candle. This pattern indicates renewed buying interest after the correction.
The recovery has also been accompanied by an improvement in trading volumes, adding strength to the rebound.
HFCL Technical Outlook: Key Levels To Watch
Momentum indicators have also turned supportive as the stock's Relative Strength Index has recovered from lower levels and is currently above the midpoint at 58.76, pointing to improving bullish momentum.
According to Tailor, the immediate support zone for HFCL is placed between Rs 215 and Rs 220. This level is supported by the 50-day EMA and could remain important for the stock's near-term trend.
On the upside, the Rs 255–257 zone remains the key resistance area, close to the stock's recent peak.
For the multibagger stock, the ability to sustain above its support zone while eventually breaking through the Rs 255–257 resistance range would be important for the next leg of the technical trend.
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