HINDALCO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 4.5

📈 Hindalco is in a strong uptrend with bullish momentum and breakout potential near its 52-week high.

📊 Technical Analysis

• Trend Status: Trending — price is in a clear upward trajectory, nearing breakout zone.
• Moving Averages: Price ₹845 is well above both 50-DMA (₹767) and 200-DMA (₹698), confirming bullish strength.
• RSI (73.6): Overbought zone, indicating strong momentum but caution for short-term pullback.
• MACD (27.2): Bullish crossover, reinforcing upward momentum.
• Bollinger Bands: Price near upper band, suggesting strength but also potential resistance.
• Volume: Current volume (43.5L) is below weekly average (59.6L), indicating breakout attempts may lack conviction.

🎯 Entry & Exit Zones

• Support Levels: ₹820, ₹767 (50-DMA)
• Resistance Levels: ₹864 (52-week high), ₹880
• Optimal Entry: ₹820–₹830 (on pullback)
• Exit Target: ₹860–₹880 (near breakout zone)

✅ Positive

• Strong quarterly profit growth (₹1,862 Cr vs ₹1,561 Cr) — 26.6% increase.
• EPS of ₹30.2 and ROCE of 12.9% reflect solid earnings and capital efficiency.
• Price trading near 52-week high, signaling investor confidence.

⚠️ Limitation

• RSI in overbought zone (73.6) may lead to short-term correction.
• Volume below average, suggesting limited participation in recent rally.
• PEG ratio of 11.6 indicates expensive valuation relative to growth.

📉 Company Negative News

• Decline in DII holdings (-0.82%) may reflect cautious domestic sentiment.
• ROE of 8.98% is modest compared to industry leaders.

📈 Company Positive News

• FII holdings increased by 0.53%, showing foreign investor confidence.
• Strong quarterly earnings and consistent profitability.

🏭 Industry

• Metals and mining sector benefiting from global commodity demand and infrastructure push.
• Industry P/E (20.1) is lower than Hindalco’s P/E (28.0), suggesting premium valuation.

🧾 Conclusion

• Hindalco is technically strong and trending upward with bullish indicators.
• Ideal for short-term entry near ₹820 with targets around ₹860–₹880.
• Long-term investors should monitor valuation and volume trends for sustained breakout.