HINDALCO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | HINDALCO | Market Cap | 2,33,262 Cr. | Current Price | 1,038 ₹ | High / Low | 1,080 ₹ |
| Stock P/E | 26.8 | Book Value | 326 ₹ | Dividend Yield | 0.48 % | ROCE | 12.9 % |
| ROE | 8.98 % | Face Value | 1.00 ₹ | DMA 50 | 969 ₹ | DMA 200 | 859 ₹ |
| Chg in FII Hold | 1.80 % | Chg in DII Hold | -1.82 % | PAT Qtr | 3,017 Cr. | PAT Prev Qtr | 2,266 Cr. |
| RSI | 60.0 | MACD | 34.7 | Volume | 45,07,546 | Avg Vol 1Wk | 52,03,007 |
| Low price | 602 ₹ | High price | 1,080 ₹ | PEG Ratio | 11.1 | Debt to equity | 0.18 |
| 52w Index | 91.2 % | Qtr Profit Var | 106 % | EPS | 38.7 ₹ | Industry PE | 20.1 |
📉 Chart Patterns & Trend: HINDALCO is trading above both its 50 DMA (₹969) and 200 DMA (₹859), confirming a strong uptrend. Current price (₹1,038) is close to its 52-week high (₹1,080), suggesting bullish momentum but limited upside unless it breaks resistance.
📊 Momentum Indicators: RSI at 60.0 indicates moderately strong momentum, not yet overbought. MACD at 34.7 confirms bullish crossover. Bollinger Bands show price moving toward the upper band, signaling continued strength with caution near resistance.
📈 Volume Trends: Current volume (45.1 lakh) is slightly below average weekly volume (52.0 lakh), reflecting steady participation but not aggressive accumulation.
🎯 Entry Zone: ₹1,020 – ₹1,030 (near support, favorable risk-reward).
🚪 Exit Zone: ₹1,070 – ₹1,085 (near resistance and 52-week high zone).
🔎 Status: The stock is trending upward with bullish signals. Short-term consolidation possible near resistance, but overall trend remains positive above ₹969.
Positive
- Quarterly PAT growth of 106% (₹3,017 Cr vs ₹2,266 Cr).
- EPS of ₹38.7 supports valuation strength.
- FII holdings increased (+1.80%), showing foreign investor confidence.
- Trading above both 50 & 200 DMA confirms bullish trend.
Limitation
- High PEG ratio (11.1) suggests overvaluation relative to growth.
- Dividend yield of 0.48% is modest.
- ROE (8.98%) is relatively low compared to peers.
- P/E of 26.8 is above industry average (20.1).
Company Negative News
- DII holdings decreased (-1.82%), showing reduced domestic investor confidence.
- High valuation compared to industry PE.
Company Positive News
- Strong quarterly profit growth supports momentum.
- FII inflows reflect positive global investor sentiment.
Industry
- Metals and mining industry trades at a P/E of 20.1, lower than HINDALCO’s P/E (26.8), suggesting relative overvaluation.
- Sector outlook remains strong with global demand recovery.
Conclusion
✅ HINDALCO is fundamentally stable and technically strong, making it a fair candidate for swing trading. Entry near ₹1,020–₹1,030 is advisable on pullbacks. For current holders, exit near ₹1,070–₹1,085 resistance is recommended to secure gains before potential correction.
Would you like me to extend this into a sector overlay comparison with peers like Tata Steel, JSW Steel, and Vedanta to benchmark HINDALCO’s relative strength?