HFCL Jumps Nearly 16% in 3 Days: Third Straight Upper Circuit, but Analysts Flag Resistance Near ₹260
Shares of HFCL Limited, which makes telecom equipment and optical fibre cables, were in the spotlight again on 1 October 2026. Despite pressure on the broader market, the stock locked in a 5% upper circuit for the third straight session, opening at ₹238.37 on the NSE. In the last three sessions the stock has gained about 16%, while the Nifty 50 slipped around 1% over the same period. Against the previous close of ₹226.65, the stock was trading at ₹237.95 (+4.99%) at 3:23 PM.
The Pace of the Rally and Its Divergence From the Market
This rally came on a day when the entire market was under pressure. On the same day, there were reports of the Sensex falling around 800 points as Brent crude approached $100. Even so, buying in HFCL continued.
So far in 2026, the stock has delivered a multibagger return of about 245%, while the Nifty 50 has fallen around 15% over the same period. The stock's 52-week low is ₹59.83 (23 January 2026) and its 52-week high is ₹257 (31 August 2026). In other words, the stock has risen roughly fourfold from its January low, and the company's market cap is now about ₹36,400 crore.
Fundamentals: Return to Profit and a Record Order Book
The rally is not driven by technical factors alone. In Q1 FY27, HFCL posted a net profit of ₹245.64 crore, compared with a loss of ₹29.30 crore in Q1 FY26. Revenue more than doubled to ₹1,914.98 crore. At the end of the quarter, the company's order book stood at an all-time high of ₹26,665 crore, nearly five times its FY26 revenue.
The turnaround from loss to profit and such a large order book form the base on which investors are estimating future earnings.
The Technical Picture: Where Is Support, Where Is Resistance?
According to Hitesh Tailor, technical analyst at Choice Broking, the stock is in a higher-high, higher-low uptrend on the daily chart. After a double top formed near ₹255–256, a natural pullback followed, which found support from strong buying between the 0.618 and 0.79 Fibonacci retracement levels. A bullish engulfing candle then formed on the daily chart, and the RSI is holding at 58.76, indicating fresh bullish momentum.
Key levels:
- Support: The ₹215–₹220 range, backed by the 50-day EMA. Analysts at Flipitmoney also consider ₹220 an important support.
- Resistance: Choice Broking puts immediate resistance at ₹255–₹257, while Flipitmoney's report cites ₹260. Both are broadly talking about the same upper zone from which the stock reversed earlier.
The Flipitmoney analyst has also pointed to signs of slowing momentum after the sharp rally. According to them, a breakout above ₹260 could revive the rally, otherwise consolidation or profit booking may follow.
Signs of Caution Are Also Present
Along with the rally come some warnings that retail investors should not ignore:
- Stock under the ASM framework. The exchanges have placed HFCL under the Long-Term Additional Surveillance Measure (LT ASM) Stage 4. This framework is meant to monitor stocks showing abnormal volatility, high concentration or heavy speculation. Trading conditions become stricter for such stocks.
- Falling delivery volume. According to MarketsMojo's analysis, the sharp decline in delivery volume is a sign of caution, as speculative trading may be influencing the current rally.
- The streak of upper circuits. After three consecutive upper circuits, the chance of profit booking increases, especially when the stock is quite close to its 52-week high of ₹257.
- Market conditions. Rising crude oil prices and a weak market can bring selling in small and midcap stocks at any time.
What Should Investors Take Away?
One side of the HFCL story is strong results and a record order book. The other side is ASM surveillance and falling delivery volume. When a stock has risen 16% in 3 days and many times over in a year, retail investors should decide on support and resistance levels, their own risk and a stop-loss before making fresh purchases. Staying below ₹220 can be seen as a sign of weakness, while a volume-backed breakout above ₹255–260 would show fresh strength.
Sources: Business Standard, Choice Broking, Flipitmoney, MarketsMojo, NSE/BSE data
Disclaimer: This article is for informational purposes only. The views expressed belong to the respective analysts and brokerages and are not buy or sell recommendations. Please consult your financial advisor before investing.
