May 17 2024, 08:37
Stock Radar:This defence stock is flying high: should you buy or book profits?
The rally in the stock may not be over for someone who wants to put fresh money. Short-term traders can look to buy the stock for a target of Rs 4,350 in 2-3 weeks, suggested experts.
HAL may have given multibagger returns in the last one year, but there's more steam left to it. The stock rose from Rs 1,512 on May 15, 2023, to Rs 4,185 on May 15, 2024 an upside of over 178%. Holding to the momentum, it hit a fresh record high of Rs 4,265 on May 16.
The defence stock is trading in an upward-rising channel on the daily chart. On the weekly charts as well, the stock has been showing an upward trend since March 2024.
Dips, if any, are bought into, which suggests that bulls are here to stay. Traders holding the stock can continue while fresh money can be deployed on dips.
In terms of price action, the stock is trading well above most of the crucial short and long-term moving averages such as 5,10,30,50,100 and 200-DMA on the daily chart.
The momentum has pushed the stock into an overbought state. Hence, some consolidation could be possible in the near future.
The daily Relative Strength Index (RSI) is placed at 72.3. RSI above 70 is considered overbought. This implies that stock may show a pullback.The daily MACD is above its Centre and Signal Line is a bullish indicator.
"The entire defence space is in action and HAL stock has been consistently moving upwards with strong follow up buying at any minor dips for the last six months," said Shivangi Sarda, analyst, Derivatives and Technical Research, Motilal Oswal Financial Services Ltd.
source: et
May 17 2024, 08:54