We recommend a buy in the stock of Hindalco Industries from a short-term perspective. It is apparent from the charts of the stock that following a short-term decline from Rs 110, the stock found base at around Rs 92 recently. Forming a bullish engulfing candlestick pattern the stock bounded up from this base level. In the last two trading sessions, the stock has jumped 12 per cent with good volume witnessing buying pressure. We notice that there is an increase in daily volume in the past four trading sessions. Moreover, we notice formation of a hammer candlestick pattern in the weekly chart, signalling short-term trend reversal. The daily and weekly relative strength index are inching higher in the neutral region towards the bullish zone. Both daily and weekly price rate of change indicators are featuring in the positive territory implying buying interest. We are bullish on the stock from a short-term perspective. We expect the stock's up move to continue and reach our price target of Rs 108 or Rs 110 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 101.5 level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Keywords: Hindalco Industries stock