| CP# | 201.45 |
| Idea | SELL |
| Sell Range | 203 – 200 |
| Target | 192.2 – 190.2 |
| StopLoss* | 205.8 |
| Duration | 7 – 10 Trading Days |
| Potential Return^ | 5 – 6% |
| CP# | Idea | Sell Range | Target | StopLoss* | Duration | Potential Return^ |
| 201.45 | SELL | 203 – 200 | 192.2 – 190.2 | 205.8 | 7 – 10 Trading Days | 5 – 6% |
# CP – closing price on Dec 12, 2019
* Maintain recommended StopLoss by daily closing basis.
Once 1st target hit, reset StopLoss at 197.
^ The returns are calculated based on CP#
COMPANY OVERVIEW
Hindalco Industries Limited, a subsidiary of the Aditya Birla Group, manufactures aluminium and copper products in India and internationally. The company’s aluminium units encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium smelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines. Their copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilisers. The company reported a consolidated net profit of Rs 974 crore for the quarter ended September 30, 2019, compared to Rs 1448 crore reported during the corresponding period of 2018-19. Net profit dipped 32.80 per cent year-on-year.
| Stock Data | |
| NSE Code | HINDALCO |
| Sectoral Index | Nifty Metal |
| 52W High | 228.5 |
| 52W Low | 171.1 |
| Face Value | 1 |
TECHNICAL OBSERVATIONS (WEEKLY)
- Looking at the weekly chart, the stock has been trading in a falling channel trend since 2018. The upper bound of this channel also acts a resistance which has been tested several times in the past, thereby making it a strong line to consider.
- Current price is near the resistance again, and we can expect the price to further fall from here.
TECHNICAL OBSERVATIONS (DAILY)
- The recent high also corresponds to the previous intermediate high, which was tested during the last three months.
- RSI has formed negative divergence on the daily chart. A negative Divergence occurs when the price is moving flat or making higher top at the same time RSI is making a lower top, which indicates loss of buying momentum and a possible rise in trend reversal.
