HFCL zooms over 5 per cent; heres why!

The stock of HFCL is seen outperforming the benchmark index on Monday as the stock has jumped over 4 per cent along with above-average volumes. After registering a high of Rs 93.70 levels, the stock formed a tweezer top pattern and corrected more than 20 per cent in a span of just six trading sessions.   

After a correction of over 20 per cent, the stock halted its correction around the rising 100-DMA, and what is more interesting is the fact that it coincided along with the 78.6 per cent retracement of the recent upmove. Interestingly, the stock, after a strong move on Monday, is seen sustaining above its important short-term moving average i.e., 20 and 50-DMA.   

So, what is the reason behind the stock’s buzz on the bourses today? HFCL Limited, a leading innovation-led telecom enterprise has been recognised as the ‘trusted source’ by National Security Council Secretariat (trusted telecom cell), a part of National Security Council, which advises the Prime Minister’s Office (PMO) on matters of national security and strategic interest. With this approval, HFCL has become the ‘trusted source’ for all Indian telecom service providers (TSPs) for sourcing their telecom active network products & infrastructure and has become one of the few companies to have received the ‘trusted sources' approval in the country.  

HFCL’s Promoter & Managing Director, Mahendra Nahata said, “We are delighted to receive the approval as a ‘trusted source’ from NSCS and are fully committed to continue serving TSP partners with our wide range of products & services. The development will lead to cementing HFCL’s position further in the telecom sector thereby, amplifying the growth opportunities for HFCL. Our inclusion in the select list as one of the trusted sources is a distinguished achievement and reinforces our commitment to delivering ‘Make in India’ world-class products/solutions and contributes to further accelerating our PM’s vision of an Atmanirbhar Bharat with greater zeal.”