HAL Breaks Out from 8-Month Consolidation; Experts See Potential Upside with Rs 5,150 Target

Hindustan Aeronautics Ltd (HAL), a key player in the aerospace and defence sector, has finally broken out of an eight-month-long consolidation phase, bringing fresh optimism for traders and investors. This breakout, observed in May 2025, is being seen as a strong bullish signal by market experts.

The stock’s breakout has opened up room for further upside, with analysts recommending it as a potential short-term buy. Experts are eyeing a target price of ₹5,150 over the next 3–4 weeks, supported by strong technical indicators and sector momentum.

HAL had previously touched a high of ₹5,675 back in July 2024. However, it couldn’t sustain those levels due to selling pressure that began in August 2024, dragging the stock below important moving averages. A failed attempt to cross the ₹4,750 level in December 2024 further added to the bearish sentiment.

But the tides began to turn in March 2025, when the stock found strong support above ₹3,000 levels. From there, it bounced back sharply and reclaimed all key moving averages on the daily charts, including the 5, 10, 20, 30, 50, 100, and 200-day averages — a positive sign for bulls.

Over the past week, HAL has surged more than 10%, and in the last month, the stock has delivered an impressive 18% return. Even more notably, HAL has rallied nearly 50% in just three months — indicating strong investor interest and renewed confidence in the defence sector.

The Relative Strength Index (RSI) currently stands at 76.5 on the daily chart. While this is in the overbought zone, it shows strong buying interest. The MACD indicator is also trending above its signal line and the centerline, reinforcing the bullish outlook.

“HAL is in a strong uptrend and has been forming higher lows on a weekly scale for the last five weeks,” said Arpit Beriwal, Analyst – Derivatives at Motilal Oswal Financial Services.
“It has retested the previous breakout zone on the daily chart and formed a strong bullish candle with high volume — another sign of sustained momentum,” he added.

With HAL holding steady above its 20-day EMA and positive momentum building across the defence sector, analysts suggest it’s an opportune time to consider long positions. However, caution is advised.

Recommendation: Buy with a stop loss below ₹4,600 on a closing basis.
Target: ₹5,150