HFCL Stock Hits 5% Upper Circuit for Third Straight Day, Emerges Multibagger

HFCL Stock Continues Surge, Securing Upper Circuit for Third Consecutive Day

HFCL shares have emerged as a multibagger, gaining traction amidst market volatility.

Strong Performance Amid Market Pressure

HFCL Limited’s shares have been on a remarkable upward trajectory, hitting the upper circuit limit of ₹238.37 on the National Stock Exchange (NSE) on Thursday. This marks the third consecutive day that the stock has reached this limit, even as broader market indices, including the Nifty 50, faced downward pressure. Over the past three trading sessions, HFCL shares have appreciated by nearly 16%, contrasting sharply with the Nifty 50’s decline of about 1% during the same period.

Surge in Trading Volume

The stock’s recent performance has been accompanied by a significant increase in trading volumes. Approximately 16 million shares changed hands today, a stark rise from the 3.4 million shares traded in the previous session. This surge in trading activity indicates heightened investor interest and confidence in HFCL’s growth prospects.

Impressive Financial Results

HFCL’s financial performance has also contributed to its stock’s bullish momentum. The company reported a net profit of ₹245.64 crore for Q1FY27, a significant turnaround from a net loss of ₹29.30 crore in the same quarter last year. Additionally, revenue more than doubled to ₹1,914.98 crore, and the company achieved its highest-ever order book of ₹26,665 crore, nearly five times its revenue for FY26. Such robust financial metrics underscore HFCL’s operational strength and market positioning.

Technical Analysis and Market Sentiment

According to Hitesh Tailor, a technical research analyst at Choice Broking, HFCL is exhibiting a sustained uptrend characterized by a Higher High-Higher Low (HH-HL) structure. Following a recent Double Top formation near the resistance zone of ₹255–256, the stock underwent a natural technical retracement. This correction found robust buying interest between the critical Fibonacci retracement levels of 0.618 and 0.79, aligning closely with the 100-day Exponential Moving Average (EMA).

The stock’s rebound from this confluence zone has formed a Daily Bullish Engulfing candle pattern, indicating strong buying interest at lower levels. The Relative Strength Index (RSI) has also shown positive momentum, currently holding above the midpoint at 58.76, reflecting renewed bullish sentiment. Key support levels are established between ₹215 and ₹220, while immediate resistance remains around ₹255–₹257.

Key Highlights

• HFCL shares hit a 5% upper circuit for three consecutive days.
• Stock has surged nearly 16% in the last three sessions.
• Trading volumes increased significantly to around 16 million shares.
• Company reported a net profit of ₹245.64 crore in Q1FY27.
• HFCL achieved its highest-ever order book of ₹26,665 crore.

Investor Note: HFCL’s recent performance highlights its potential as a multibagger stock, but investors should remain cautious of market volatility and the implications of regulatory measures as the stock is under Long-Term Additional Surveillance Measure Stage 4.