Strong price volume breakout witnessed in this midcap stock; do you own it?

The stock of HFCL has surged 5% amid fresh buying interest in the stock.

In recent times, the broader market is seen outperforming the benchmark indices Nifty and Sensex as strong buying interest prevails in midcap and smallcap stocks. The fundamentally strong quality stocks have seen catching up with the largecap stocks and have seen a good run lately. One such stock is HFCL, which has soared nearly 5% amid fresh buying interest from investors.

HFCL is engaged in the business of manufacturing telecom products and other optic cables. Their high-end wired and wireless access solutions are customizable to every network's needs as per the demand. With a market capitalisation of about Rs 12,000 crore, it is one of the leading companies in its sector.

Technically, the stock has registered a strong price volume breakout from its consolidation pattern. In the medium term, the stock has broken from its ascending pattern with strong volumes this week. All the moving averages are in an uptrend, and all of them depict bullishness across all timeframes. The 14-period daily RSI (69.61) is in the bullish territory and shows strong strength in the stock. The ADX points northward and indicates strong trend strength. The OBV is at its peak and indicates strong strength from a volume perspective. The Elder impulse system indicates a fresh buying interest while TSI and KST indicators also display bullishness. In a nutshell, the stock is technically very strong and is expected to trend higher in times to come,

In the past 3 years, the company has generated rising revenue and net profitability, along with a decrease in debt ratios. Interestingly, the stock has been a proven multibagger, having generated over 400% returns to its shareholders during this period. The institutions have been tardily increasing their stake in this company for the past few quarters. Currently, the shares of HFCL trade at Rs 88 levels on the NSE. Investors as well as momentum traders should keep a close watch on this stock for upcoming trading sessions.