Technical View on HBL Power System

HBL Power System Ltd is a diversified manufacturer with three key divisions: Electronics, Defence, and Batteries. In particular, the Battery division specialises in producing batteries for various industries, including Telecom, UPS, Railways, Solar, Oil and Gas, and Power sectors. Additionally, they manufacture VRLA batteries for Data Center applications. Also, the company has secured orders from numerous Metro Rail projects and exports its batteries to various countries in Africa and beyond. Their product range includes Tubular Gel Batteries and Pure Lead Thin Batteries, with the former being supplied to the Indian Army. In the Electronics division, HBL Power System Ltd boasts flagship products like the Train Collision Avoidance System (TCAS) and the Train Management System (TMS). The Indian government has adopted TCAS as the national Automatic Train Protection system, naming it KAVACH. Furthermore, the company manufactures batteries for fighter aircraft.

With five manufacturing units in Telangana and Andhra Pradesh, HBL Power System Ltd is further expanding its operations with a new unit in Mahaboobnagar, Telangana, involving an outlay of Rs 110 crore.

From a technical standpoint, the stock has recently broken out of a 7-week flat base and is currently trading at an all-time high. Over the last three weeks, trading volume has increased. The stock’s price relative strength is notably high, standing at 96. It is trading above all its long-term moving averages, with the 10-week average serving as a recent support level in the base. The stock is positioned 101% above the 200-day moving average. Furthermore, it comfortably exceeds the 50-week average, and the 20-period RSI indicates a bullish trend with a value above the 60 zone. The 14-period RSI also resides in the strong bullish zone. The weekly ADX demonstrates robust trend strength. The Elder’s Impulse system has generated strong bullish bars. Additionally, key indicators like KST, TSI and Stochastic RSI are all in a bullish setup.

The stock has a good support placed at Rs 285-290 and on the way up the stock has potential to test level of Rs 330-345 in the medium term.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.