HINDALCO - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.1

⚙️ Technical Signals & Momentum Check

Price Action: Trading at ₹693, above both the 50 DMA (₹670) and 200 DMA (₹650) — bullish momentum confirmed.

RSI (60.0): Strong upward trend but still shy of overbought territory — momentum has room to grow.

MACD (6.64): Positive crossover strengthens the short-term bullish narrative.

Volume: Current volume slightly below the weekly average — mild caution, but not a major red flag.

📈 Fundamentals at a Glance

Valuation

P/E (9.36) significantly lower than industry average (17.7) — undervalued.

PEG Ratio (1.25) — moderate growth supporting price levels.

Efficiency

ROE (14.5%) and ROCE (15.2%) — decent performance metrics.

Debt to Equity (0.52): A bit of leverage, but manageable.

Earnings Growth: Quarterly PAT jumped 66.3% — huge boost, signaling a positive business cycle.

EPS (₹71.2): Strong earnings per share supports bullish outlook.

🔍 Institutional Sentiment

FII Holding: Slight drop (–0.55%) — some foreign caution.

DII Holding: Mild increase (+0.25%) — domestic investors slightly optimistic.

🎯 Trade Plan

📥 Optimal Entry: Ideal buying zone is ₹670–₹685 — a retest near the 50 DMA with sustained MACD strength would confirm support.

📤 If Holding — Exit Zone: Watch for resistance between ₹720–₹740. If RSI crosses 70 or MACD flattens in that range, consider taking profits.

🧠 Verdict

HINDALCO offers a compelling swing setup with undervaluation, strong earnings momentum, and technical indicators lined up in its favor. It's not a runaway breakout, but there's enough juice to consider a short-term position with tight stop-loss management.

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