HAL share plunges 8% to Rs 4,100 level; where is this defence stock headed?
HAL is currently facing stiff resistance at the 50-week EMA near the Rs 4,450-4,550 range, while the 100-week EMA around Rs 4,100 provides a floor that must be sustained to maintain the structural integrity of the trend.
- Feb 4, 2026,
- Updated Feb 4, 2026 12:51 PM IST
Shares of Hindustan Aeronautics Ltd (HAL) fell nearly 8 per cent in Wednesday’s trade before paring some losses after finding support at its 100-week exponential moving average. The weakness in the stock came despite HAL being seen as a key beneficiary of a surge in defence capital expenditure for FY27. The stock declined as much as 8.31 per cent to a low of Rs 4,100.15. At 12.33 pm, the defence stock was trading 5.52 per cent, or Rs 246.95, lower at Rs 4,225 on the BSE
Hitesh Tailor, Technical Research Analyst of Choice Broking said HAL is navigating a retracement phase within its broader long-term uptrend.
"On the weekly chart, the stock is oscillating in a sideways zone between Rs 4,000 and Rs 4,500. It is currently facing stiff resistance at the 50-week EMA near the Rs 4,450-4,550 range, while the 100-week EMA around Rs 4,100 provides a critical floor that must be sustained to maintain the structural integrity of the trend," he said.
Tailor said HAL momentum remains subdued, with the RSI at 39.87, reflecting a short-term downside bias and a lack of immediate buying pressure.
This, he said, indicates that the stock is in a "wait-and-watch" phase as it seeks to stabilise near key support levels. "A reversal in the RSI toward the 50-60 zone would be necessary to signal a shift back toward positive momentum," Tailor said.
For a fresh bullish entry, Tailor felt traders should wait for a decisive breakout above Rs 4,500 supported by healthy volume. "Sustaining above this level would confirm the end of the consolidation and likely trigger a continuation of the primary uptrend," he said.
PL Capital said capex on defence aircraft & aeroengines went up significantly in the Budget 2026. It noted that the capex has been revised to Rs 72,800 crore for FY26 from Rs 48,600 crore earlier. The capex for defence aircraft & aeroengines is budgeted at Rs 63,700 crore for FY27, which is seen positive for HAL.
HDFC Institutional Equities said defence allocation at Rs 2.3 lakh crore is increase of 17 per cent for FY27BE against Rs 1.97 lakh crore during FY26RE. It said order pipeline will be aided, as major allocation has been in navy fleets, aircrafts and aeroengines and other equipment.
Shares of Hindustan Aeronautics Ltd (HAL) fell nearly 8 per cent in Wednesday’s trade before paring some losses after finding support at its 100-week exponential moving average. The weakness in the stock came despite HAL being seen as a key beneficiary of a surge in defence capital expenditure for FY27. The stock declined as much as 8.31 per cent to a low of Rs 4,100.15. At 12.33 pm, the defence stock was trading 5.52 per cent, or Rs 246.95, lower at Rs 4,225 on the BSE
Hitesh Tailor, Technical Research Analyst of Choice Broking said HAL is navigating a retracement phase within its broader long-term uptrend.
"On the weekly chart, the stock is oscillating in a sideways zone between Rs 4,000 and Rs 4,500. It is currently facing stiff resistance at the 50-week EMA near the Rs 4,450-4,550 range, while the 100-week EMA around Rs 4,100 provides a critical floor that must be sustained to maintain the structural integrity of the trend," he said.
Tailor said HAL momentum remains subdued, with the RSI at 39.87, reflecting a short-term downside bias and a lack of immediate buying pressure.
This, he said, indicates that the stock is in a "wait-and-watch" phase as it seeks to stabilise near key support levels. "A reversal in the RSI toward the 50-60 zone would be necessary to signal a shift back toward positive momentum," Tailor said.
For a fresh bullish entry, Tailor felt traders should wait for a decisive breakout above Rs 4,500 supported by healthy volume. "Sustaining above this level would confirm the end of the consolidation and likely trigger a continuation of the primary uptrend," he said.
PL Capital said capex on defence aircraft & aeroengines went up significantly in the Budget 2026. It noted that the capex has been revised to Rs 72,800 crore for FY26 from Rs 48,600 crore earlier. The capex for defence aircraft & aeroengines is budgeted at Rs 63,700 crore for FY27, which is seen positive for HAL.
HDFC Institutional Equities said defence allocation at Rs 2.3 lakh crore is increase of 17 per cent for FY27BE against Rs 1.97 lakh crore during FY26RE. It said order pipeline will be aided, as major allocation has been in navy fleets, aircrafts and aeroengines and other equipment.