HAL: Strong Trend, But RSI Divergence Signals a Possible Buying Opportunity

Hindustan Aeronautics (HAL) has suddenly gained momentum, supported by strong fundamentals and improving technical structure. The company’s Q1 FY27 performance was healthy, with consolidated net profit rising 15% YoY to ₹1,590 crore and revenue increasing 14% to ₹5,515 crore. The bigger fundamental trigger is the improving outlook for Tejas Mk1A deliveries. Brokerages remain positive on HAL, with delivery execution seen as a key catalyst. The company also carries a strong order book of around ₹2.54 lakh crore, providing substantial long-term revenue visibility. Technically, HAL has broken above its earlier descending trendline and is trading above its key moving averages. The 10 EMA is above the 20 EMA, while the 20 EMA remains above the 50 EMA, indicating a bullish trend structure. However, one caution is visible: price has made a fresh high, while RSI has failed to cross its previous high. This creates a bearish RSI divergence, suggesting that momentum may cool down even though the broader trend remains bullish. Therefore, instead of chasing the stock after the sharp rise, a short-term correction or retest could provide a better risk-reward buying opportunity. The ₹5,000–₹4,950 zone can be watched for support, while ₹4,850–₹4,760 becomes the next important support area. View: Trend remains bullish, but RSI divergence suggests patience. A healthy pullback followed by a bullish reversal could offer a better entry than chasing the rally.