HINDALCO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | HINDALCO | Market Cap | 2,09,824 Cr. | Current Price | 934 ₹ | High / Low | 1,030 ₹ |
| Stock P/E | 24.1 | Book Value | 326 ₹ | Dividend Yield | 0.54 % | ROCE | 12.9 % |
| ROE | 8.98 % | Face Value | 1.00 ₹ | DMA 50 | 924 ₹ | DMA 200 | 822 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | -0.94 % | PAT Qtr | 3,017 Cr. | PAT Prev Qtr | 2,266 Cr. |
| RSI | 49.3 | MACD | 1.30 | Volume | 40,66,294 | Avg Vol 1Wk | 73,11,406 |
| Low price | 546 ₹ | High price | 1,030 ₹ | PEG Ratio | 10.0 | Debt to equity | 0.18 |
| 52w Index | 80.1 % | Qtr Profit Var | 106 % | EPS | 38.7 ₹ | Industry PE | 17.0 |
📊 Chart & Trend Analysis: HINDALCO is trading at ₹934, above its 50 DMA (₹924) and 200 DMA (₹822), reflecting short-term strength. RSI at 49.3 indicates neutral momentum, while MACD at 1.30 suggests mild bullish crossover. Bollinger Bands show price near the mid-range, signaling consolidation. Volume is below the weekly average, indicating reduced participation despite recent gains.
📈 Momentum Signals: Short-term momentum is stabilizing, with MACD positive and RSI neutral. Consolidation is likely before a breakout attempt. Price action suggests sideways movement with mild bullish bias.
💹 Entry & Exit Zones:
- Optimal Entry: ₹920–₹935 (near 50 DMA support)
- Stop-Loss: ₹900 (below support zone)
- Exit Zone: ₹980–₹1,000 (resistance zone)
- Major Resistance: ₹1,030 (recent high)
📉 Trend Status: The stock is consolidating with mild bullish bias, supported by moving averages but capped by resistance near ₹1,000–₹1,030.
Positive
- Strong ROCE (12.9%) and ROE (8.98%) highlight efficient capital use in metals sector.
- Debt-to-equity ratio of 0.18 reflects low leverage.
- Quarterly PAT surged to ₹3,017 Cr. from ₹2,266 Cr., showing robust earnings growth.
- EPS of ₹38.7 reflects solid profitability.
Limitation
- P/E of 24.1 is higher than industry average (17.0), suggesting premium valuation.
- PEG ratio of 10.0 indicates expensive growth prospects.
- Volume below average shows reduced participation in recent rally.
Company Negative News
- DII holdings decreased (-0.94%), showing reduced domestic institutional support.
- Stock corrected from its 52-week high of ₹1,030, reflecting selling pressure at higher levels.
Company Positive News
- FII holdings increased slightly (+0.03%), showing stable foreign investor interest.
- Quarterly profit variation of 106% highlights strong operational improvement.
Industry
- Metals and aluminum industry benefits from global demand recovery and infrastructure push.
- Industry PE at 17.0 highlights relatively cheaper peers compared to HINDALCO’s P/E of 24.1.
Conclusion
⚖️ HINDALCO is technically consolidating with mild bullish bias, trading above key moving averages but facing resistance near ₹1,000–₹1,030. Traders may consider entry near ₹920–₹935 with strict stop-loss at ₹900, targeting ₹980–₹1,000 in the short term. Long-term investors should be cautious of high PEG ratio and premium valuation, waiting for sustained earnings growth to justify accumulation.
Would you like me to extend this into a peer benchmarking overlay (e.g., Vedanta, Hindustan Zinc, Nalco) so you can evaluate sector rotation opportunities alongside HINDALCO?