Shares of HFCL rallied 3% to their day’s high of Rs 158 on the BSE on Tuesday, extending gains for a fifth consecutive session and gaining over 22% during the same period. From a technical perspective, Ruchit Jain, Vice President of Technical Research at Motilal Oswal, said that the stock has seen renewed buying interest in the last couple of months. Prices have rallied with good volumes hinting at an uptrend. However, as prices have already rallied, traders with existing longs can hold and ride the trend. The 20 DEMA at Rs 138 is seen as the immediate support.“HFCL has moved from a base breakout into a momentum extension,” according to Harshal Dasani, Business Head at INVasset PMS. He noted that the stock has crossed its earlier 52-week high zone with a sharp one-week move, which confirms strength but also suggests the easy part of the breakout is behind the stock. When price expands this fast above prior resistance, the first pullback usually indicates whether this is institutional accumulation or just a short-term squeeze, he added.“The structure remains constructive as long as HFCL holds the breakout band around Rs 150 to Rs 155 on a closing basis. A controlled retest with lower volumes would keep the trend healthy. A close back below that zone would weaken the breakout and open the risk of a deeper mean reversion.Kunal Kamble, Sr. Technical Research Analyst at Bonanza, said that HFCL witnessed a strong bullish breakout and upper circuit move, followed by sustained buying momentum. The stock is trading above key EMAs with higher volumes, confirming aggressive accumulation, and the RSI is placed near 78.He further added that the follow-up buying after the sharp rally suggests confidence among market participants and hints at a potential uptrend in the near term. Earlier in April, HFCL reported a consolidated net profit of Rs 178.50 crore for the fourth quarter of the financial year 2026, as against a net loss of Rs 81.44 crore reported in the corresponding quarter of the previous financial year. The firm’s net sales, meanwhile, surged 128% YoY to Rs 1,824 crore in the year-ago period.On a sequential basis, profit surged 82% from Rs 98 crore reported in the previous quarter, while revenue climbed 51% quarter-on-quarter from Rs 1,211 crore reported in the third quarter of the financial year 2026.Institutional activity also reflects mixed sentiment. Mutual fund holdings in HFCL increased from 6.68% to 6.92% during the March 2026 quarter, while foreign portfolio investors (FPIs) slightly reduced their stake from 7.48% to 7.08%.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)