HAL S/RSupport and Resistance Levels:
Support Levels: These are price points (green line/shade) where a downward trend may be halted due to a concentration of buying interest. Imagine them as a safety net where buyers step in, preventing further decline.
Resistance Levels: Conversely, resistance levels (red line/shade) are where upward trends might stall due to increased selling interest. They act like a ceiling where sellers come in to push prices down.
Breakouts:
Bullish Breakout: When the price moves above resistance, it often indicates strong buying interest and the potential for a continued uptrend. Traders may view this as a signal to buy or hold.
Bearish Breakout: When the price falls below support, it can signal strong selling interest and the potential for a continued downtrend. Traders might see this as a cue to sell or avoid buying.
20 EMA (Exponential Moving Average):
Above 20 EMA: If the stock price is above the 20 EMA, it suggests a potential uptrend or bullish momentum.
Below 20 EMA: If the stock price is below the 20 EMA, it indicates a potential downtrend or bearish momentum.
Trendline: A trendline is a straight line drawn on a chart to represent the general direction of a data point set.
Uptrend Line: Drawn by connecting the lows in an upward trend. Indicates that the price is moving higher over time. Acts as a support level, where prices tend to bounce upward.
Downtrend Line: Drawn by connecting the highs in a downward trend. Indicates that the price is moving lower over time. It acts as a resistance level, where prices tend to drop.
RSI: RSI readings greater than the 70 level are overbought territory, and RSI readings lower than the 30 level are considered oversold territory.
Combining RSI with Support and Resistance:
Support Level: This is a price level where a stock tends to find buying interest, preventing it from falling further. If RSI is showing an oversold condition (below 30) and the price is near or at a strong support level, it could be a good buy signal.
Resistance Level: This is a price level where a stock tends to find selling interest, preventing it from rising further. If RSI is showing an overbought condition (above 70) and the price is near or at a strong resistance level, it could be a signal to sell or short the asset.
Disclaimer:
I am not a SEBI registered. The information provided here is for learning purposes only and should not be interpreted as financial advice. Consider the broader market context and consult with a qualified financial advisor before making investment decisions.
HAL trade ideas
HAL MASSIVE BREAKOUT DONE!The cabinet committee on Monday approved the proposal for procurement of 240 aero-engines (AL-31FP) for Su-30 MKI aircraft of the Indian Air Force (IAF) under Buy (Indian) category from Hindustan Aeronautics Limited (HAL) at a cost of over Rs 26,000 crore inclusive of all taxes and duties. The delivery of these aero-engines would start after one year and complete over a period of eight years.
HAL: Bullish Divergence & Trend Line InsightDiscover the latest technical setup for Hindustan Aeronautics Ltd (HAL) with a focus on bullish divergence and the ascending trend line. As we anticipate upcoming news events, explore how these factors could impact HAL’s stock performance and trading strategy.
HAL,RSI divergenceRSI (Relative Strength Index) divergence is a valuable tool for traders to identify potential trend reversals. Divergence occurs when the price of an asset is moving in the opposite direction of the RSI. Here are the four main types of RSI divergences:
### 1. Bullish Divergence
- **Description**: A bullish divergence occurs when the price of an asset is making lower lows, but the RSI is making higher lows.
- **Implication**: This suggests that the bearish momentum is weakening, and a potential reversal to the upside may occur.
- **Example**: If the price of a stock hits a new low, but the RSI forms a higher low, this could indicate that the downtrend is losing strength and an upward move may follow.
### 2. Bearish Divergence
- **Description**: A bearish divergence happens when the price of an asset is making higher highs, but the RSI is making lower highs.
- **Implication**: This indicates that the bullish momentum is weakening, and a potential reversal to the downside may occur.
- **Example**: If the price of a stock reaches a new high, but the RSI forms a lower high, it suggests that the uptrend is losing steam and a downward move may be imminent.
### 3. Hidden Bullish Divergence
- **Description**: Hidden bullish divergence occurs when the price of an asset is making higher lows, but the RSI is making lower lows.
- **Implication**: This is a sign that the existing uptrend is likely to continue.
- **Example**: If the price of a stock is in an uptrend and makes a higher low, but the RSI makes a lower low, it indicates that the bullish trend is still strong and will likely continue.
### 4. Hidden Bearish Divergence
- **Description**: Hidden bearish divergence happens when the price of an asset is making lower highs, but the RSI is making higher highs.
- **Implication**: This signals that the existing downtrend is likely to continue.
- **Example**: If the price of a stock is in a downtrend and makes a lower high, but the RSI makes a higher high, it indicates that the bearish trend remains strong and will likely persist.
### Summary
- **Regular Divergences** (Bullish/Bearish) often indicate potential trend reversals.
- **Hidden Divergences** (Hidden Bullish/Hidden Bearish) suggest the continuation of the current trend.
Using RSI divergence in conjunction with other indicators and analysis can help improve the accuracy of your trading decisions.
here I have covered 2 divergences only for the understanding of one of my followers, for further reference call me on 7007804781.
Hal, why it will move tomorrow?As you can see yellow, blue, red and green candles rather than simple red and green candles what this indicates, lets understand step by step:-
1.yellow candle means rsi is greater than 60
2.blue candles means rsi is less than 40
3. normal green and red candles means rsi is in between 40 and 60
Analysis:
1.As you can see visually see candles are basically yellow, green and red but if you see last two candles they are blue and green .
it means stock has been strongly in uptrend, rsi has been remained mainly above 60 line but in 2ndlast candle color got blue, it means rsi moved below 40 rsi line but in next candle it became green.
this is tendency of stocks that when it is in strong trend and a sudden fall comes, it pullback itself strongly.
2. 2nd reason is that stock is on trendline support
3. bullish hidden divergence
4.buy sell pressure indicator zero line support
Bullish trade HAL huge order book received for HAL 45000 crore rupees order on 17th june for 156 helicopters
entry @ 5160, target 5300, stoploss 5050 on daily closing basis or middle of channel breaks in one hour time frame
holding duration 10 days.
close trade if 2% profit achieved www.tradingview.com
Standard disclaimer :- Not a sebi registered analyst , for education purpose only.
Hindustan Aeronautics (HAL)Stock is in bullish trend and the current market price is a also the support price (4745).. one can enter at this levels and keep accumulating in every dip up to 4025...
below 4025 stock my see down trend and may go till 3765 levels..
Target seen at 5438, 5874 and 6582..
Enter & Accumulate for handsome returns and Enjoy the benefit
Hindustan Aeronaut Limited -1-Short & Mid term viewHINDUSTAN AERONAUT, CMP: 3872.90; RSI: 59.88,
This Defence major has given a decent returns to its investor. The script has a splendid run-up and given returns to a approx. 93.9% in last 7 months time frame. On charts the script has showing some signs of fatigue and the script may be near its peak. The script may peak out in short term at 4100 odd levels. Script may slip into a momentary consolidation phase and plungs down to 3650 to 3450 levles. This levles are good accumulation zone.
Short term Target : 4035-4100
Accumation Zone: Between: 3450-3650
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HAL will move 10% due to the bagged order ? cmp 3070Defence Execution Council Meet today – expectation of 15 aircraft potential deal with HAL
Expect positive for defence stocks after the media report that the Defence Execution Council Meeting will be held today.
Expectation that large domestic defence order of nearly Rs11000cr by the government to encourage local players.
Positive for HAL, cmp 3070 may move upto 3330
#HAL just Broken and Closed Above its Previous All Time High
Company has reduced debt.
Company is almost debt free.
Company has delivered good profit growth of 23.9% CAGR over last 5 years
Company has a good return on equity (ROE) track record: 3 Years ROE 26.7%
Company has been maintaining a healthy dividend payout of 29.6%
Company's working capital requirements have reduced from 98.4 days to 38.2 days
Strong order book providing healthy revenue visibility
HAL's order book remained healthy at ₹84,814 crore as on December 31, 2023 majorly contributed by manufacturing of various models of helicopters and aircraft of around 56,569 crore to be executed over the next five to six years. Major orders in the manufacturing segment pertains to supply of 83 Light Combat Aircraft-Mk1A version (LCA), 70 HTT-40, 6 LCA 10C/FOC, 4 Dornier apart from various aerospace structures for PSLV and GSLV. The ROH order book remained healthy at 28,277 crore and is expected to remain robust in the near to medium term as HAL undertakes the repair and maintenance work of aircraft manufactured by it for its entire life as well as for aircraft manufactured by others for which it has built infrastructure across the country. Furthermore, there remains visibility of future orders with strong order pipeline wherein orders for procurement of new platforms viz. Advanced Light Helicopter (ALH), Light Utility Helicopter (LUH), Additional Su-30, AL31 FP Engines and RD-33 Engines and mid-life upgrade of D0-228 Aircraft aggregating to 55,000 crore are in the advance stage of conclusion and are anticipated to be received within next three to siz months. In addition, orders for procurement of additional 97 Nos of LCA, 156 Nos of Light Combat Helicopter (LCH), 60 Nos Utility Helicopter-Maritime (UHM) including Performance Based Logistics (PBL) Contract, among others aggregating to 158,000 crore have been approved by the Defence Acquisition Council and the orders against the same are anticipated within next 18-24 months.
Given the significantly long tenure of its contracts, HAL enters into variable price contracts with its customers, Indian Airforce, Indian Army and Indian Navy, wherein the future escalation is built into the prices excluding forex fluctuation on procurement. The forex fluctuations are paid on an actual basis by the customers. This protects its margins from forex and raw material price escalation to a large extent. However, profitability may get impacted due to time or cost overrun in case there is execution delays at HAL's end.
Strong financial risk profile marked by healthy profitability and cash accruals and continued improvement in its
collection period
HAL continues to have a sizeable scale of operations and the TOI grew y-o-y by 8% to 26,397 crore in FY23 majorly on the back of increase in revenue from repairs and maintenance services. The PBILDT margin stood healthy at 25.68% in FY23. Income tax refund of 1193 crore and ₹973 crore further supported profitability in FY22 and FY23 respectively. The company earned gross cash accruals (GCA) of ₹7,000 crore in FY23 as against 5,634 crore in FY22. Its debt coverage indicators remain strong due to low reliance on external borrowings. The revenue contribution from manufacturing activities declined in FY22 and FY23 y-o-y, as majority of the manufacturing orders were completed, and the new contracts were under manufacturing and in development phase and delivery of the same is expected to be booked in FY25 onwards. Accordingly, its income is likely to get a fillip from FY25 onwards once deliveries start for 83 LCA Mk1A in a staggered manner.
In 9MFY24, HAL registered TOI of ₹15,612 crore and profit after tax (PAT) of ₹3,303 crore as against TOI of ₹14,433 crore and PAT of ₹2,970 crore registered in 9MFY23. CARE Ratings expects the profitability and debt coverage indicators to remain healthy, going forward.
The total receivables of HAL continued to remain below ₹5000 crore as on balance sheet date for past two years ended FY23 as it had realised substantial payment from government in FY22. The collection period has improved from 135 days in FY21 to 64 days in FY23. HAL also receives advances from its customers against the contracts which constitutes a stable source of funding its working capital requirement. The advances stood robust at 28,981 crore as on March 31, 2023 which further increased to *32,588 crore as on December 31, 2023. Timely realisation of dues and increase in advances has resulted in continued low reliance on debt to fund its working capital requirement. The same resulted in the overall gearing ratio of almost nil as on March 31, 2023.
The company has strongly articulated that going forward HAL's debt level is expected to remain low on the back of sustaining its
improved collection period.
Just a View - HAL📊 Script: HAL
📊 Sector: Aerospace & Defence
📊 Industry: Engineering
Key highlights: 💡⚡
📈 Script is trading in between 2821 level to 3132 level.
📈 Breakout is above 3132 level.
📈 One can go for swing trade only above 3132 level.
BUY ONLY ABOVE 3132
⏱️ C.M.P 📑💰- 3115
⚠️ Important: Always maintain your Risk & Reward Ratio.
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Disclaimer: I am not SEBI Registered Advisor. My posts are purely for training and educational purposes.
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Happy learning with trading. Cheers!🥂
Trade for Tomorrow :-)Hello All,
The recommendations are purely for educational purpose only, consult you financial advisor before trading.
Targets are mentioned in charts (either red lines or lines), keep Stop Loss as per your risk..
If you like my Idea, Don't forget to Boost and comment on my Analysis..
Have a profitable year ahead
Gautam Khanna
Technical Analyst by Passion :-)