HINDALCO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | HINDALCO | Market Cap | 2,04,199 Cr. | Current Price | 908 ₹ | High / Low | 1,030 ₹ |
| Stock P/E | 28.6 | Book Value | 326 ₹ | Dividend Yield | 0.55 % | ROCE | 12.9 % |
| ROE | 8.98 % | Face Value | 1.00 ₹ | DMA 50 | 891 ₹ | DMA 200 | 779 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | -0.94 % | PAT Qtr | 2,266 Cr. | PAT Prev Qtr | 1,862 Cr. |
| RSI | 46.7 | MACD | 24.0 | Volume | 90,91,250 | Avg Vol 1Wk | 1,19,99,607 |
| Low price | 546 ₹ | High price | 1,030 ₹ | PEG Ratio | 11.8 | Debt to equity | 0.18 |
| 52w Index | 74.8 % | Qtr Profit Var | 19.8 % | EPS | 31.8 ₹ | Industry PE | 28.8 |
📊 Chart & Trend Analysis: HINDALCO is trading at ₹908, above its 50 DMA (₹891) and 200 DMA (₹779), indicating medium-term strength. RSI at 46.7 suggests neutral momentum, neither overbought nor oversold. MACD at 24.0 reflects bullish crossover, supporting upward bias. Current volume (90.9L) is below the weekly average (119.9L), showing reduced participation. Bollinger Bands suggest price near mid-range, indicating consolidation with mild bullish tilt.
📈 Momentum Signals: Short-term momentum is mildly positive, supported by MACD bullish crossover. RSI neutrality signals consolidation rather than aggressive trend continuation. Lower volume participation limits breakout strength.
🎯 Entry Zone: ₹890 – ₹905 (near 50 DMA support)
🚪 Exit Zone: ₹980 – ₹1,020 (near resistance and recent high)
🔎 Trend Status: Consolidating with bullish bias. Sustained trade above ₹930 could trigger fresh uptrend towards ₹1,000+, while breakdown below ₹880 may signal reversal.
Positive
- Strong ROCE (12.9%) and ROE (8.98%) highlight efficient capital use in metals sector.
- Debt-to-equity ratio of 0.18 indicates low leverage risk.
- Quarterly PAT growth from ₹1,862 Cr. to ₹2,266 Cr. shows earnings momentum.
- EPS of ₹31.8 reflects consistent profitability.
Limitation
- High PEG ratio (11.8) indicates expensive growth prospects.
- Dividend yield of 0.55% is relatively low.
- Volume participation below average reduces conviction in breakout moves.
Company Negative News
- Decline in DII holding (-0.94%) signals reduced domestic institutional support.
Company Positive News
- Increase in FII holding (+0.03%) reflects marginal foreign investor confidence.
- Quarterly profit variation of 19.8% shows strong earnings growth.
Industry
- Metals and aluminum sector remains cyclical but benefits from infrastructure demand.
- Industry P/E at 28.8 highlights moderate sector valuation, aligned with HINDALCO’s current P/E.
Conclusion
⚖️ HINDALCO is consolidating with a bullish bias. Entry near ₹890–₹905 offers favorable risk-reward, while exits near ₹980–₹1,020 provide short-term profit booking. Strong fundamentals and earnings growth support long-term holding, but high PEG ratio and weak volume participation warrant cautious positioning.
Would you like me to extend this into a peer benchmarking overlay (NALCO, Vedanta, Hindustan Zinc) so you can compare HINDALCO’s relative strength within the metals basket?