- Summary:
- HCC share price has recently been on a downturn in recent days, but its fundamentals look strong. We look at its potential in H2 2024.
Hindustan Construction Company (HCC) share price recovered slightly on Wednesday, taking a pause from its five-session downturn. HCC (NSE: HCC) was up by 1.2 percent in the intraday session, trading at Rs 46.46. The company posted a consolidated loss of Rs 2.5 crore for the first quarter FY25 period, as per the earnings report released on Monday. However, the net profit during the reporting period rose to Rs 22.75 crore, year-over-year from Rs 18.95 crore.
Despite the mixed results, the Mumbai-based company’s order book remains healthy, with Rs 9,534 crore worth of contracts in the bag. Furthermore, it has Rs 4,633 crore worth of projects in which it is the lowest bidder. This forms a strong basis for a potential reversal by HCC share price in the coming weeks. Below, we assess how it could turn out in the mid-term.
Momentum indicators
Despite the signs of recovery by HCC, the current share price is below the 20-SMA (Rs 50.94), signaling an underlying weak upside momentum. However, the 20-SMA (green line) is above the 50-SMA (blue line), which could provide support for the upside. The red line not only shows the 200-SMA, but also represents the lower threshold (Rs 37.15), below which HCC could become bearish. Furthermore, that level is marginally above the lower price mark on the ascending channel (Rs 36.77).
On the ascending channel, the HCC share price looks likely to pivot at Rs 46.56, with the next barrier likely to be at Rs 50.81. If the upside momentum breaks above that mark, it could clear the path to head higher and test the mid-term barrier at 60.61. Therefore, look for bullish momentum signal if the price crosses above Rs 50.81, and a strong market rally above Rs 60.61. The table below shows a summary of the key support and resistance levels for HCC in the second half of the year.
| Current price | 47.05 |
| Pivot | 46.56 |
| Support Levels | |
| S1 | 37.15 |
| S2 | 36.77 |
| Resistance Levels | |
| R1 | 50.81 |
| R2 | 60.61 |