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The stock of Hindalco Industries registered fresh five-months high of ₹179 yesterday and it remains above the support of ₹175 and the near-term outlook is positive. The stock which erased over 60 per cent as it marked a low of ₹84.9 in late March from ₹221.2 – its 2020 peak, was quick to recover. Since registering its low, it has been moving up gradually as it made higher highs and higher lows. Notably, it has been repeatedly bouncing-off from the 21-day moving average, indicating good bullish momentum.
The daily relative strength index is currently showing a fresh uptick and it remains above the midpoint level of 50. The moving average convergence divergence indicator in the daily chart, which was pointing downwards till last week, is now turning its trajectory upwards; it remains in the positive territory. As the price action too supports the bullish bias, the stock is likely to scale new heights from current levels. Hence, traders can buy the stock with stop-loss at ₹170. It can rally to ₹190 and ₹200 in the near-term.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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