HFCL Ltd Sees Robust Trading Activity Amid Strong Sell Mojo Grade

Trading Volume and Value Surge

On the first trading day of 2026, HFCL Ltd recorded a total traded volume of 2.06 crore shares, translating into a substantial traded value of approximately ₹143.38 crore. This level of activity places HFCL among the top equity performers by value turnover, underscoring its liquidity and appeal to market participants. The stock opened at ₹67.79 and surged to an intraday high of ₹70.65, marking a 4.22% rise within the session. The last traded price (LTP) stood at ₹69.75 as of 09:45 IST, reflecting a day-on-day gain of 2.94% and outperforming the sector benchmark by 2.17%.

Price Momentum and Moving Averages

HFCL has demonstrated positive momentum, having gained 10.65% over the past two consecutive trading days. The stock’s price currently trades above its 5-day and 20-day moving averages, signalling short-term bullishness. However, it remains below the 50-day, 100-day, and 200-day moving averages, indicating that medium to long-term trends are yet to confirm a sustained uptrend. This mixed technical picture suggests that while short-term traders are optimistic, longer-term investors may remain cautious.

Institutional Interest and Delivery Volumes

Investor participation has notably increased, with delivery volumes on 31 December rising by 14.97% compared to the five-day average. The delivery volume of 3.85 crore shares indicates strong commitment from investors holding shares beyond intraday trading, a positive sign of confidence. The stock’s liquidity is robust, with the capacity to handle trade sizes of up to ₹14.66 crore based on 2% of the five-day average traded value, making it attractive for institutional investors and large order flows.

Mojo Score and Rating Update

Despite the encouraging trading activity, HFCL’s fundamental outlook remains under pressure. The company’s Mojo Score currently stands at 23.0, categorising it as a “Strong Sell” with a recent downgrade from a “Sell” rating on 17 November 2025. This downgrade reflects concerns over the company’s financial health, valuation metrics, or sectoral headwinds. The Market Cap Grade is rated 3, indicating a small-cap status with moderate market capitalisation of ₹10,689.73 crore. Investors should weigh the technical strength against these fundamental cautionary signals.

Sector and Market Context

HFCL operates within the Telecom - Equipment & Accessories sector, which has delivered a 1-day return of 2.33%, slightly below HFCL’s 3.02% gain. The broader Sensex index showed a modest increase of 0.15% on the same day, highlighting HFCL’s relative outperformance. This divergence suggests that the stock is attracting specific interest, possibly due to company-specific developments or sector rotation strategies by institutional investors.

Price Range and Volatility

The stock’s intraday price range between ₹67.22 and ₹70.65 indicates moderate volatility, providing trading opportunities for short-term participants. The 4.22% intraday high gain is notable in the context of the stock’s recent performance and volume surge. However, the gap between the current price and longer-term moving averages suggests that investors should monitor for confirmation of sustained upward momentum before committing to larger positions.

Outlook and Investor Considerations

HFCL’s recent trading activity reflects a complex interplay of strong market interest and fundamental caution. The stock’s liquidity and volume profile make it a viable candidate for active traders and institutional investors seeking exposure to the telecom equipment segment. However, the “Strong Sell” Mojo Grade downgrade signals underlying risks that could temper gains if sectoral or company-specific challenges intensify.

Institutional Flows and Market Sentiment

Large order flows and increased delivery volumes suggest that institutional investors are actively participating in HFCL’s stock. The rise in delivery volume by nearly 15% compared to the recent average indicates a shift from speculative trading to more committed holdings. This trend often precedes sustained price movements, although the fundamental downgrade tempers enthusiasm. Market participants should closely monitor quarterly results and sector developments to gauge the sustainability of this interest.

Conclusion

HFCL Ltd’s trading activity on 1 January 2026 highlights a stock at a crossroads. While the surge in volume and value turnover, coupled with short-term price gains, signals growing investor interest, the fundamental downgrade to a “Strong Sell” rating advises caution. The stock’s liquidity and relative outperformance within its sector make it an attractive trading candidate, but investors should remain vigilant of underlying risks and evolving market conditions. Balancing technical momentum with fundamental analysis will be key to navigating HFCL’s near-term trajectory.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →