HAL
#StockMarket #StockIdeas #StocktoWatch #StockToBuy #positionalHAL
Stock after giving good breakout, retraced to its breakout levels and then again started Upside movement.
Showing good example of breakout, pullback, retest and continuation.
Buy at CMP also with positional view for minimum 3-5% targets.
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Note:
Above levels are for education purposes only
Do your own analysis before taking any trade
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Hindustan Aeronautics Ltd. HAL Chart Analysis !!📈 Hindustan Aeronautics Ltd. (HAL) 📉
This Stock Broke out from a Resistance zone of 1460-1480 after testing five times this range on upside with a strong green candle. If you look closely it has spend around seven months below this level. So It makes this Strong breakout.
Bias - Long
Target - 1600, 1700, 1800
SL - 1394
RR- 1 : 2.5
All Important Supports and Resistances are drawn in chart. All levels are on closing basis.
Please have a look and revert back if you need some more study on it.
Disclaimer : Consult Your Financial Advisor Before Taking Any Decision On This Analysis.
HAL ready for a cup and handle breakout1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or close below daily supertrend (for short term traders) or close below weekly supertrend (for long term investors)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
After a consolidation since September 2021 (if we look at the weekly charts then we can see that the consolidation has been going on since August 2020), NSE:HAL is going to break out from a cup and handle pattern. Volume is also increasing. If the stock breaks out above Rs.1500 then it will be a good buy with the stop just below Rs.1400.
Other fundamentals:
1. India will 'possibly' not import any defence items going forward: Defence Ministry official
2. Hindustan Aeronautics Limited informed that in a major boost to Atmanirbhar Bharat Mission, as per Press Information Bureau, CCS has approved the procurement of 15 Light Combat Helicopters (LCH) Limited Series Production (for Indian Air Force 10 and Indian Army 5) from the Company.
3. Average Roe for last 3 and 5 years more than 15%
4. Borrowings came down from nearly 6000 crores in March 2020 to 6 crores in September 2021
5. Dividend yield of 2.69% (consistent dividend payer since 2016)
6. Debt to equity at 0.00 (less than 1 is good), Interest Coverage at 106 (greater than 3 is good), Current ratio at 1.65 (greater than 1.5 is good).
7. FII stake increased from 0.30% in December 2020 to 3.15% in December 2021.
HALHindustan Aeronautics is an Indian state-owned aerospace and defence company
Current price is less than the intrinsic value
Stock offers good dividend returns
Low probability of default in next 12 months
In last 3 months, mutual fund holding of the company has increased by 1.10%
PE Ratio 15.09
Largecap
With a market cap of ₹48,892 cr,
Stock is 1.89x as volatile as Nifty
Over the last 5 years, market share increased from 79.98% to 89.98%
Over the last 5 years, net income has grown at a yearly rate of 10.08%, vs industry avg of 6.68%
Over the last 5 years, debt to equity ratio has been 19.35%, vs industry avg of 16.95%
Note:
1. Views are personal and for educational purposes only. Recheck and take the trade as per your RR.
2. Always remember SL is your lifeline, not the big target...
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3. Views given here is not a tip rather it is for educational purpose... Aftermarket opens, the condition might change so learn to handle different conditions...
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Keep an eye ladies and gentlemen. Cheers and Happy Trading
Short Market Report 02.03.22Short market report
Both indices closed in red (though nifty posted a green candle) with a long legged dojo indicating some buying pressure. The buying pressure indeed came at the end of the trading session owing to a news of probabilities of talks between Russia and Ukraine which was confirmed by Kremlin. No one saw this coming and bears have been punished without mercy owing to the short covering its started.
The short covering this time affected put buyers more than call writers as the amount of contracts in puts just dropped off a cliff. Those call writers who went in too close being over confident by their conviction have paid the price and Banknifty just managed to get a 700 points rally.
These kind of moves have become daily affair at this point.
CHART
Gap down; both indices closed in red; green doji nifty; red doji banknifty; massive short covering after 3 pm
OC
16500-16700, 35000-35500
PCR
bearish
FII
-4338
DII
3061
FnO Data
long Build up in both indices
RSI
39; 37
ADX
26; 21
Conviction
Bullish
Bias
Bullish
TRADE
sell 35000 PE
Expect a gap up opening tomorrow if we manage not to get any bad news till market opening. Sell 35000 PE and calls above 36600
Recently, the defence sector has got a good traction and one of my good friends has the same view. HAL and BEL getting the focus as of now. These stocks can be considered for the long side with moderate risk
Intraday Trade: watch for resistance breakoutbuy above 1330 in intraday
For stoploss in Intraday use 5 minute chart and see nearest support.
for target use 5 min chart and fibonacci pivots as i don't keep predefined target.
try to book partially and trail.
Note: this is not a prediction for LONG/SHORT, trade will trigger only on given level as per technical analysis
NOTE: For Gapup or bo before 9:20
If gapup is more than 1% from bo level than avoid completely.
if less than 1% or gives bo before 9:20 than wait for
first 5 minute candle and entry above 5 minute candle
and revised SL below candle Low.
HAL at good support for Swing LongFormed double bottom at good support previous acted as resistance
+ve divegence and breaking short term trendline
one can plan for buy at CMP with Strict SL below swing
DISCLAIMER: For education purpose only, do your own analysis or consult your advisor before taking position
HAL 1800 ? PossibleWith rising disagreements between India and China, HAL definitely gain furthermore momentum.
I will advise to trade in cash as this is extremely volatile stock.
1800 will come quite quickly. One of the best flag patterns I have seen. Also, RSI has been declining and stock has required acceleration space.
This is just a chart pattern discussion. Please trade your hard-earned money on advice of a registered stock market expert. I am a newbie trader :)