HFCL Ltd Sees Exceptional Volume Surge Amid Mixed Technical Signals

Trading Volume and Price Action Overview

On the first trading day of 2026, HFCL Ltd (symbol: HFCL) emerged as one of the most actively traded stocks by volume on the Indian equity markets. The total traded volume reached an impressive 20,481,098 shares, translating into a traded value of approximately ₹142.38 crores. This volume figure represents a significant increase compared to the stock’s recent average daily volumes, signalling heightened investor interest.

The stock opened at ₹67.79, matching its previous close, and rallied to touch a day high of ₹70.65, marking a 4.22% intraday gain. The last traded price (LTP) stood at ₹69.78 as of 09:44 IST, reflecting a 2.94% increase on the day. The day’s low was ₹67.22, indicating a relatively tight trading range with a positive bias.

Sector and Market Context

HFCL’s performance outpaced its sector peers, with the Telecom Equipment & Accessories sector gaining 2.33% on the same day, while the broader Sensex index recorded a modest 0.15% rise. The stock’s 1-day return of 3.02% thus represents a clear outperformance, underscoring its appeal amid sectoral momentum.

Over the past two days, HFCL has delivered a cumulative return of 10.65%, marking a notable short-term rally. This consecutive gain streak has attracted increased investor participation, as evidenced by the delivery volume on 31 Dec 2025 rising by 14.97% to 3.85 crore shares compared to the 5-day average delivery volume. Such rising delivery volumes often indicate genuine accumulation rather than speculative trading.

Technical Indicators and Moving Averages

From a technical perspective, HFCL’s current price of ₹69.78 sits above its 5-day and 20-day moving averages, signalling short-term bullish momentum. However, it remains below the 50-day, 100-day, and 200-day moving averages, indicating that the medium- to long-term trend remains under pressure. This mixed technical picture suggests that while short-term traders may find opportunities, longer-term investors should exercise caution.

The stock’s liquidity is robust, with the 5-day average traded value supporting trade sizes of up to ₹14.66 crores without significant market impact. This liquidity profile is favourable for institutional investors and large traders seeking to enter or exit positions efficiently.

Mojo Score and Rating Update

Despite the recent price gains and volume surge, HFCL’s fundamental and technical assessment remains subdued. The company’s Mojo Score stands at 23.0, reflecting a Strong Sell grade as of 17 Nov 2025, an upgrade in severity from the previous Sell rating. This downgrade signals deteriorating fundamentals or technical outlooks as analysed by MarketsMOJO’s proprietary scoring system.

HFCL’s market capitalisation is approximately ₹10,689.73 crores, categorising it as a Small Cap stock within the Telecom Equipment & Accessories sector. The Market Cap Grade is 3, indicating a mid-tier valuation relative to peers. Investors should weigh the stock’s recent momentum against these cautionary signals before making allocation decisions.

Volume Surge Drivers and Market Sentiment

The exceptional volume spike can be attributed to several factors. Firstly, the stock’s recent consecutive gains have likely attracted momentum traders and short-term investors seeking to capitalise on the rally. Secondly, the rising delivery volumes suggest genuine accumulation by institutional or retail investors anticipating a turnaround or sectoral tailwinds.

However, the downgrade to a Strong Sell rating tempers enthusiasm, implying that underlying risks remain. These may include competitive pressures in the telecom equipment space, margin challenges, or broader macroeconomic uncertainties impacting capital expenditure cycles in telecom infrastructure.

Accumulation vs Distribution Signals

Analysing the volume-price relationship, the increase in delivery volume alongside price appreciation points towards accumulation rather than distribution. This is a positive technical signal, indicating that investors are willing to hold shares rather than offload them amid the rally. Nevertheless, the stock’s position below key longer-term moving averages suggests that this accumulation phase may be part of a consolidation rather than a definitive trend reversal.

Investor Considerations and Outlook

For investors, HFCL presents a nuanced opportunity. The stock’s liquidity and volume surge provide an attractive trading environment, especially for short-term strategies. The recent outperformance relative to sector and benchmark indices adds to its appeal.

Conversely, the Strong Sell Mojo Grade and the stock’s failure to breach longer-term moving averages caution against aggressive accumulation. Investors should monitor upcoming quarterly results, sector developments, and any changes in rating or score updates from MarketsMOJO to reassess the stock’s trajectory.

Conclusion: Balancing Momentum with Caution

HFCL Ltd’s trading activity on 1 Jan 2026 highlights the dynamic nature of equity markets where volume surges can coexist with mixed fundamental and technical signals. While the stock’s recent gains and rising delivery volumes suggest positive investor sentiment and accumulation, the Strong Sell Mojo Grade and resistance at longer-term moving averages counsel prudence.

Investors should continue to monitor HFCL’s price action in conjunction with sector developments and rating updates. Those with a higher risk appetite may consider tactical exposure to capitalise on momentum, while more conservative investors might await clearer signs of trend confirmation before committing capital.

Key Data Summary:

• Total traded volume: 20,481,098 shares


• Total traded value: ₹142.38 crores


• Day’s high/low: ₹70.65 / ₹67.22


• Last traded price: ₹69.78 (up 2.94%)


• Mojo Score: 23.0 (Strong Sell, downgraded from Sell on 17 Nov 2025)


• Market cap: ₹10,689.73 crores (Small Cap)


• Sector 1-day return: 2.33%, Sensex 1-day return: 0.15%


• Delivery volume on 31 Dec 2025: 3.85 crore shares (+14.97% vs 5-day average)

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