Investors with a short-term horizon can buy the stock of Hindalco Industries at current levels. The stock sky-rocketed 17.7 per cent accompanied by extra-ordinary volume on Tuesday, breaking a key immediate resistance at ₹100.

Following a medium- and a short-term downtrend, it registered a 52-week low and found support at ₹85 in late March. Subsequently, it changed direction, triggered by positive divergence in the daily relative strength index and began to trend upwards.

Backed by good volume, the stock surpassed a key resistance level of ₹100 on Tuesday, strengthening the near-term bullish momentum. The daily RSI has entered the neutral region from the bearish zone; the weekly RSI is recovering from the oversold territory.

Also, the daily price rate of change indicator is on the brink of entering the positive territory, implying buying interest. There has been an increase in daily volume over the past one month.

Taking a contrarian view, the short-term outlook appears to be positive for the stock, and it has the potential to extend the current rally in the ensuing trading sessions.

The short-term targets are ₹109 and ₹112. Traders can buy the stock with a deep stop-loss at ₹101 levels.

The recommendations are based on technical analysis. There is a risk of loss in trading

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