Hindustan Petroleum Gains 8.49%: Mixed Technical Signals Shape Weekly Momentum

2 February 2026: Intraday Surge Signals Strong Buying Interest

HPCL began the week with a notable intraday rally, surging 5.36% to reach a high of ₹453.90. The stock closed at ₹452.95, up ₹26.10 or 6.11% from the previous close, significantly outperforming the Sensex which declined 1.03% to 35,814.09. This sharp gain was supported by a volume of 484,749 shares, reflecting robust investor interest. The stock’s performance outpaced the Oil Exploration and Refineries sector’s 2.62% gain, underscoring HPCL’s relative strength within its industry segment.

Technically, HPCL traded above its 5-day, 20-day, 100-day, and 200-day moving averages, signalling positive momentum, although resistance near the 50-day average suggested potential consolidation ahead. The company’s Mojo Score at this point was a bullish 74.0, with a recent upgrade to Buy rating, reflecting improved fundamentals and technical outlook.

3 February 2026: Downgrade to Hold Reflects Mixed Technical and Valuation Signals

Despite the strong price gains on 2 February, MarketsMOJO downgraded HPCL’s rating from Buy to Hold on 3 February 2026, citing a nuanced reassessment of technical indicators and valuation metrics. The stock closed marginally lower at ₹451.00, down 0.43% from the previous day, while the Sensex rebounded strongly, gaining 2.63% to 36,755.96.

Fundamentally, HPCL remained robust with a six-month profit after tax of ₹7,870.70 crores, reflecting a 192.99% growth rate, and net sales reaching ₹115,153.20 crores, up 14.21% annualised. The company’s return on capital employed (ROCE) stood at a healthy 17.1%, and institutional investors held a significant 37.01% stake. Valuation metrics remained attractive, with an enterprise value to capital employed ratio of 1.3 and a dividend yield of 3.4%.

However, technical momentum shifted from mildly bullish to sideways, with bearish signals emerging on weekly and monthly MACD and KST oscillators. The stock’s recent price volatility and mixed momentum indicators prompted a more cautious stance, despite strong long-term returns of 198.32% over three years and 294.19% over ten years.

4 February 2026: Technical Momentum Shifts to Mildly Bullish on Daily Averages

On 4 February, HPCL’s price closed at ₹459.10, up 1.80% from the previous day, while the Sensex gained 0.37%. The stock’s technical momentum showed signs of improvement on daily moving averages, shifting from sideways to mildly bullish. This was despite mixed signals from key indicators such as MACD, RSI, and Bollinger Bands, which remained cautious on weekly and monthly timeframes.

The Relative Strength Index hovered near neutral levels, indicating balanced demand and supply. Bollinger Bands presented a split view, mildly bearish on weekly charts but bullish on monthly charts, suggesting potential stabilisation over the longer term. On-Balance Volume remained subdued, reflecting a lack of strong conviction behind recent price moves.

Dow Theory assessments indicated a mildly bullish weekly trend but a mildly bearish monthly trend, highlighting the divergence between short- and long-term momentum. HPCL’s Mojo Score remained at 64.0 with a Hold rating, reflecting this cautious but slightly optimistic technical stance.

5 February 2026: Consolidation Amid Mixed Market Signals

HPCL’s price edged down slightly by 0.08% to ₹458.75 on 5 February, while the Sensex declined 0.53%. Trading volume increased to 286,646 shares, suggesting active participation despite the minor price dip. The stock remained above key moving averages, maintaining a mildly bullish short-term outlook, but broader technical indicators continued to signal caution.

This consolidation phase reflects investors’ balancing of HPCL’s strong fundamentals against the mixed technical momentum and recent rating downgrade. The stock’s resilience amid a modest market pullback underscores its relative strength within the oil sector.

6 February 2026: Week Closes Strong with 0.95% Gain

HPCL ended the week on a positive note, closing at ₹463.10, up 0.95% on the day and 8.49% for the week. The Sensex also gained 0.10% to 36,730.20. The stock’s volume of 201,742 shares indicated steady investor interest. This closing price marked the week’s high, reflecting sustained buying momentum despite the mixed technical signals earlier in the week.

HPCL’s ability to outperform the Sensex by nearly 7 percentage points over the week highlights its relative strength and resilience. The stock remains below its 52-week high of ₹508.45 but comfortably above its 52-week low of ₹287.55, suggesting a wide trading range with potential for further directional moves.

Key Takeaways

Strong Weekly Outperformance: HPCL’s 8.49% weekly gain significantly outpaced the Sensex’s 1.51%, reflecting robust investor interest and relative strength within the oil sector.

Mixed Technical Signals: The downgrade from Buy to Hold and the shift from mildly bullish to sideways momentum on weekly and monthly indicators highlight caution amid recent price volatility.

Fundamental Strength: The company’s impressive profit growth, healthy ROCE of 17.1%, and attractive dividend yield of 3.4% underpin its solid financial position despite short-term technical headwinds.

Volume and Momentum Trends: Trading volumes fluctuated but remained supportive of price gains, while daily moving averages turned mildly bullish, suggesting potential for near-term upside.

Long-Term Resilience: HPCL’s strong multi-year returns, including nearly 300% over ten years, demonstrate its enduring value creation despite recent short-term fluctuations.

Overall, HPCL’s week was characterised by a strong price rally supported by fundamental strength, tempered by a cautious technical outlook. Investors should monitor momentum indicators closely as the stock navigates this transitional phase.

Conclusion

Hindustan Petroleum Corporation Ltd. demonstrated notable resilience and strength during the week of 2–6 February 2026, with an 8.49% price appreciation that outperformed the broader market by a wide margin. The stock’s performance was driven by a strong intraday surge early in the week, followed by a reassessment of its technical outlook that led to a downgrade from Buy to Hold. This rating adjustment reflected mixed signals from momentum indicators and a cautious stance on near-term price direction.

Despite these technical headwinds, HPCL’s fundamental metrics remain robust, with impressive profit growth, solid capital efficiency, and an attractive dividend yield. The stock’s long-term track record of outperformance further underscores its value proposition within the oil sector.

Investors should weigh the company’s strong financial foundation against the current technical consolidation and mixed momentum signals. The mildly bullish daily moving averages suggest potential for further gains, but caution is warranted given the sideways trend on weekly and monthly charts. Monitoring key indicators such as MACD, RSI, and volume flows will be essential to gauge the stock’s next directional move.

In summary, HPCL’s week was a blend of strong price action and prudent caution, reflecting a stock at a technical crossroads but supported by enduring fundamental strength.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →