HFCL trade ideas
HFCL
#HFCL
Optical Fiber Cable Manufacturer.
Vital role for WIFI setups for Smart City projects. it just completed Second WIFI Village in Karnataka.
Potential Targets are given for more upside levels.
Technically it gave us a breakout here. It may consolidate or it may continue with the rally which was started last month. it went up to 86% plus in 1.5 months.
HFCL - Rectangular Flag and Pole breakout
Entry - CMP (72.6) breakout was 67.85
Target1: 86.1
Stop Loss: 63.7 (Daily Close).
Will Update Trailing Stop loss whenever required.
Duration: 1-2 months
2nd Time Sharing this Script since it went well last time and hoping it to go well this time too, since Script has shown Slightly Stronger Technical Pattern this time. (Rectangular Flag and Pole)
Technical Stock is showing Rectangular Flag and Pole breakout with increased Volume .
Fundamentally Script is trading around Fair to Slightly Higher Valuation but since we are in bull market we can expect Over valuation of low Debt companies too.
Previous View
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HFCL - Up Flag on Daily ChartBreak Out Date: Daily Candle on 2nd July 2021
Break Out Close: 72.50
Anticipated Price Target: 95.75
Suggested Stop Loss on daily closing basis: 68 (for the first 4 daily candles starting from 5th July 2021). Thereafter the book the profit/ exit on attainment of the price target or downward crossover of 26 EMA by 5 EMA whichever is earlier.
RR Ratio: 1:6
NOTE: This idea is an attempt to predict the future price movement. Investment decision based on this idea, if any, shall be solely at the risk of the investor.
HFCL - Flag and Pole breakout
Entry - CMP (51.15) breakout was 47.3
Target1: 71.2
Stop Loss : 47.5 (Weekly Close). Deep SL 42.15
Will Update Trailing Stop loss whenever required.
Duration : 1-2 months
Technical trade Stock is showing Flag and Pole breakout with increased Volume.
Fundamentally Script is trading around Fair Valuation but since we are in bull market we can expect over valuation of low Debt companies too.
Disc. : Views Shared for Education Purpose only. Consult your Financial Advisor before taking any position.
Please like Share and Comment if you like our work.
'Electric vehicle', '5G rollout', 'Bharath Net' themes in one goFlag and Pole pattern formation in process for a return of 50% and more.
Re-rating on cards with the change in fundamentals. Promoter buying stake from open market.
Strong order book for the next 2 years. Pledged shares going down gradually.
Government strategies aligned with the company's business.
Themes based investing for HFCL:
1)Additional 4G spectrum allocation
2)Large scale Fiber To The Home rollout
3)5G opportunity
4)Railway Communication
5)Electric Mobility opportunity through its subsidiary company
Every dip should be looked at as an opportunity to buy from hereon.
#TradeTheTrend#ThemeBased#FundamentalPick