HINDALCO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.3

📊 Chart Patterns: Hindalco is trading near its 52-week high (864 ₹) with current price at 854 ₹. The stock has shown strong upward momentum, supported by higher highs and higher lows. Key support lies at 830–840 ₹, with resistance at 864–880 ₹.

📈 Moving Averages: Price is comfortably above both 50 DMA (804 ₹) and 200 DMA (730 ₹), confirming a strong bullish trend.

📉 RSI: At 65.7, RSI is approaching overbought territory, suggesting caution but still supportive of bullish momentum.

📈 MACD: Positive at 13.2, indicating continued bullish momentum and trend strength.

📊 Bollinger Bands: Price is near the upper band, showing strong buying pressure but also risk of short-term pullback.

📈 Volume Trends: Current volume (42,77,747) is higher than average weekly volume (32,54,083), confirming strong participation and accumulation.

📌 Short-term Momentum Signals: Bullish momentum intact. A breakout above 864 ₹ could push toward 880–900 ₹. Support at 830–840 ₹ provides a cushion for entry.

🎯 Optimal Entry Zone: 835–845 ₹ (near support).

🎯 Optimal Exit Zone: 875–890 ₹ (near resistance).

📈 Trend Status: The stock is trending upward strongly, with bullish signals across indicators.

Positive

• Strong quarterly PAT growth (2,266 Cr. vs 1,862 Cr.), up 19.8%.
• EPS of 31.8 ₹ supports earnings visibility.
• FII holding increased by 0.53%, showing foreign investor confidence.
• Stock trading well above 50 DMA and 200 DMA confirms bullish strength.

Limitation

• ROCE (12.9%) and ROE (8.98%) are modest compared to peers.
• PEG ratio of 11.1 suggests expensive valuation relative to growth.
• Dividend yield is low at 0.58%, limiting passive income appeal.

Company Negative News

• DII holding decreased by -0.82%, showing reduced domestic institutional support.

Company Positive News

• Quarterly PAT growth highlights strong operational performance.
• FII inflows reflect global investor confidence in the company.

Industry

• Industry PE at 20.6 is lower than Hindalco’s PE (26.8), suggesting relative overvaluation.
• Aluminium and metals sector remains strong, supported by global demand recovery and infrastructure growth.

Conclusion

⚖️ Hindalco is technically strong, trading near its 52-week high with bullish signals from MACD, RSI, and volume. Fundamentals show earnings growth, though valuations are stretched. Entry is favorable near 835–845 ₹ with exit around 875–890 ₹. The stock is in a clear uptrend, but caution is advised as RSI nears overbought levels.