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HINDALCO - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.2

Last Updated Time : 28 May 26, 08:26 pm

Technical Rating: 4.2

Stock Code HINDALCO Market Cap 2,58,225 Cr. Current Price 1,150 ₹ High / Low 1,154 ₹
Stock P/E 25.6 Book Value 341 ₹ Dividend Yield 0.43 % ROCE 17.1 %
ROE 13.7 % Face Value 1.00 ₹ DMA 50 1,025 ₹ DMA 200 894 ₹
Chg in FII Hold 1.80 % Chg in DII Hold -1.82 % PAT Qtr 2,934 Cr. PAT Prev Qtr 3,017 Cr.
RSI 69.1 MACD 29.4 Volume 80,43,701 Avg Vol 1Wk 62,76,505
Low price 618 ₹ High price 1,154 ₹ PEG Ratio 0.57 Debt to equity 0.23
52w Index 99.2 % Qtr Profit Var 88.0 % EPS 44.9 ₹ Industry PE 18.8

📈 Chart Patterns: HINDALCO is trading at its 52-week high (₹1,154), showing strong upward momentum. The broader structure reflects a steep rally from ₹618, with price action forming higher highs and strong bullish continuation.

📊 Moving Averages: Current price (₹1,150) is well above DMA 50 (₹1,025) and DMA 200 (₹894), confirming strong bullish momentum.

📉 RSI: At 69.1, RSI is approaching overbought territory, suggesting caution for short-term traders.

📈 MACD: Positive at 29.4, showing bullish crossover and continuation of upward momentum.

📉 Bollinger Bands: Price is near the upper band, reflecting strong bullish momentum but risk of short-term pullback.

📊 Volume Trends: Current volume (80.4L) is above average weekly volume (62.7L), showing strong participation and conviction in the rally.

Short-Term Momentum Signals: Strong bullish bias with high momentum; breakout sustained above ₹1,154 confirms trend strength.

🎯 Entry Zone: ₹1,120–₹1,150 (support region).

🎯 Exit Zone: ₹1,154–₹1,180 (resistance zone).

🔀 Trend Status: Trending upward with bullish undertone; consolidation possible near resistance.


Positive

  • Strong ROCE (17.1%) and ROE (13.7%) highlight operational efficiency.
  • EPS at ₹44.9 supports earnings visibility.
  • Price trading above both DMA 50 and DMA 200 confirms bullish trend.
  • FII holdings increased (+1.80%), showing foreign investor confidence.

Limitation

  • Dividend yield at 0.43% is modest.
  • Quarterly PAT declined slightly (₹3,017 Cr. to ₹2,934 Cr.).
  • High P/E ratio (25.6) compared to industry PE (18.8) indicates premium valuation.
  • DII holdings decreased (-1.82%), showing reduced domestic support.

Company Negative News

  • Slight decline in quarterly PAT.
  • Valuation concerns with P/E above industry average.
  • RSI near overbought levels signals caution.

Company Positive News

  • Quarterly profit variation (+88%) shows strong earnings momentum.
  • Stock trading near 52-week high reflects bullish sentiment.
  • MACD positive, confirming upward momentum.

Industry

  • Industry PE at 18.8 vs. HINDALCO PE at 25.6 shows premium valuation.
  • Metals and mining industry supported by global demand for aluminum and copper.

Conclusion

HINDALCO is trending upward with strong bullish undertones. Short-term traders may consider entry around ₹1,120–₹1,150 with exit near ₹1,154–₹1,180. Long-term investors should monitor valuation risks and sector demand before fresh accumulation.

Would you like me to extend this into a sector overlay HTML report with peer benchmarking against Tata Steel, JSW Steel, and Vedanta, or keep it strictly as a standalone technical rating?

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