HAL is expected to rise to Rs 3,010 after the breakthrough of the horizontal trendline

HAL is expected to rise to Rs 3,010 after the breakthrough of the horizontal trendline

HAL is expected to rise to Rs 3,010 after the breakthrough of the horizontal trendline

January series futures saw a 2.79 percent increase in the derivatives market. There was a significant build-up as shown by the over 7% rise in the cumulative OI of the current, next, and away series.

Hindustan Aeronautics Limited (HAL) technical charts point to a breakthrough from higher levels on a daily basis, bolstered by an increase in volumes. Head of SBI Securities' technical and derivatives research Sudeep Shah predicts that the stock will hit Rs 3,010 in the near future and Rs 3,070 in the long run.

HAL was up 37.35 points, or 1.3%, from its previous close when it traded at Rs 2,907.35 on the National Stock Exchange at 10.55 a.m. on January 4.

A horizontal trendline breakout is shown on the HAL technical chart. SBI Securities is the source.

HAL peaked at Rs 2,850 on December 18, after a brief decrease. According to Shah, volume activity was below average throughout this pullback period, suggesting a typical dip after a notable gain.

The 20-day exponential moving average (EMA) level, which corresponds to the 23.6 percent Fibonacci retracement level determined from the last upward bounce (Rs 1,768-2,850), is where the correction most noticeably found support, he added. "

The stock has established a solid base close to the support zone, and on January 3 it produced a daily scale breakout of the horizontal trendline. He said that a spike in volume had helped the breakout.

Every setup based on a moving average suggests bullish momentum. Relative Strength Index (RSI) readings on a daily and weekly basis are quite positive. Additionally, Daily Stochastic indicated a bullish crossing.

Shah said that "January series futures have increased by 2.79 per cent" in the derivatives market. Overall long-term building has been indicated by the about 7% growth in the cumulative OI (open interest) of the current, next, and distant series." gives."

According to him, there is a notable concentration of call open interest at 2,900 strike, which is followed by 3,000 strike, and a notable concentration of put open interest at 2,860 strike.

It is evident that long positions had accumulated at the 2,900 call strike. On the other hand, at strikes 2,920 to 2,780 on the put side, put writing or put long covering have been seen. This provides a definite sign of the stock's increase.

Because technical and derivative elements are aligning favorably, Shah suggests building up the stock with a stop loss of Rs 2,780 and an accumulation range of Rs 2,880-2,850. The short-term projections point to an upward trend, with early objectives of Rs 3,010 and Rs 3,070.