A TECHNICAL UPDATE ON HINDUSTAN AERONAUTICS LTD.

 9.6.2024.

A TECHNICAL UPDATE. 

HINDUSTAN AERONAUTICS LTD. 

SECTOR--AEROSPACE & DEFENSE. 

ATH---5444 MADE ON 3.6.2024.

CMP-- 4745.15 ON 7.6.2024.

TTM EPS- 113.96(-34.61% Y. O. Y) 

TTM/PE----- 41.61/ SECTOR PE--29.93

BOOK VALUE- 577.68

PRICE TO BOOK VALUE:--8.21

DIVIDED YIELD:-0.93%

FACE VALUE:-10

EQUITY:-334.39cr

SHARE HOLDING:- PROMOTERS-71.60% ---FII--12. 40%---DII---9.60 & PUBLIC--6.40%

Support:--4682/4557/4502/4348/4279.65/4044.75/3920/3671/3428/2913.60.

Resistance:-4767/4800/4862/5026/5085/5139.20/5378/5444.

TECHNICAL VIEW:--

It is in a strong long term uptrend and in the new zone but

after hitting an all- time high of 5444 recently on 3.6.2024 it corrected and made  bottom at 3920 and now the CMP is 4745.15, please note that it is still into correction mode but pullback mode is also on and moving up from here it will face strong resistance at 4767/4862/5026/5085/5139.20, please note that if it moves above 5026 it will get out of corrective mode and if it moves above 5139.20 and sustain on the closing basis then it may retest it's all- time high of 5444 or may go beyond it also. Similarly moving down it has good support at 4502/4348/4279.65/4089/4025/3920/3671,sustained break below 4279.65 can drag it down to 3920 and sustained break below 4025 can drag it down to 3671 and finally and most importantly sustained break below 3671 could drag it down to much lower levels and then the correction could be more painful price-wise & time-wise both. So the last key important  and critical support point is 3671. It is important to mention here that some of the important technical indicators are  weak on the daily&weekly chart which indicates that it could go down further from here in coming days. However price action is OK now and as far as price action remains positive there is no major threat for it to go down, but the pullback up move lacked volumes in the last two day which is slightly concerning. Therefore it i suggested so keep a watch on the price action & volumes and this will fairly indicate that which way it is going to move. The price range for the stock now is between 5444---3920 and it is evenly poised now. So be watchful. 

Remarks:- In view of the above observation those who have recently bought the stock can partly book profit and make rest of the holding cost effective because it can still go down from here. Aggressive traders can try long trade  on decline near 4280 with a stop loss of 4000 or on the sharp decline near 3671 with a stop loss of 3590.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS. 

Note: Price stated here are of spot market. 

Thanks 

Narendra Kumar Surana

Email—suranank@gmail.com

Mobile—8240951127/9831313654.