HFCL Falls 17% in Six Sessions

HFCL shares fell 18.63% over six sessions hitting lower circuit twice settling at ₹164.95. No bad news. No earnings miss. Just sharp profit booking after a massive 2026 rally. The stock tested ₹185-190 resistance and pulled back hard. When a stock rallies strongly early investors sell to lock in gains causing a sharp temporary fall. This is called profit booking. It looks scary but is often healthy. The key question is is this a temporary pullback or a full trend reversal? RSI measures how overbought or oversold a stock is on a scale of 0-100. Above 70 overbought correction likely. Below 30 oversold bounce likely. HFCL's RSI had shot into overbought territory during the rally and is now cooling analysts say this is profit booking not a reversal. The stock still trades above its long term moving averages bullish structure intact. $HFCL HFCL's 17% fall after a big rally taught me that sharp corrections after strong momentum moves are often healthy profit booking and not trend reversals, and that using RSI and moving averages helps investors distinguish between temporary pullbacks and genuine breakdowns in momentum stocks like HFCL, $STLTECH Sterlite Technologies and $DIXON Dixon before making panic sell decisions.