Hindalco Industries shares rise 39% from 52-week low; buy, sell or hold?

Shares of metal major Hindalco Industries Ltd have gained 39% from their 52-week low today hit on June 20 last year. Hindalco Industries stock touched a high of Rs 429.10 today against the previous close of Rs 421.95 on BSE. Market cap of the firm rose to Rs 96,326 crore. Hindalco stock has lost 21.55% in one year and declined 9.4% since the beginning of this year.

Total 1.17 lakh shares of the firm changed hands amounting to a turnover of Rs 4.99 crore.

In terms of technicals, the relative strength index (RSI) of Hindalco Industries stands at 59.8, signaling it's trading neither in the overbought nor in the oversold zone.

Hindalco Industries stock has a one-year beta of 1.7, indicating very high volatility during the period.

Hindalco Industries shares are trading higher than the 5 day, 20 day, 50 day and 200 day moving averages but lower than 100 day moving averages.

Om Mehra, Equity Research Analyst, Choice Broking said, "In the weekly chart, the stock is forming Higher High – Higher low indicating that the stock is rebounding from lower levels. Also, the stock managed to remain above the middle Bollinger band supported the price action. Currently, the stock is trading higher than 20, 50 and 200 day moving averages but lower than 100 day moving averages. In a month, delivery volume rose 20.07 percent indicating good upside traction coming in a few weeks. On daily charts, the RSI has crossed over and is currently trading at 62, indicating that the script still has potential to advance. Stock has taken support at the lower band of Bollinger Bands in the weekly chart, signaling strength in price action. Hence, based on the above technical structure, one can initiate a long position at current markety price of Rs 428. However, on the safer side, nearby Rs 416-422 levels would be a better range to enter. Closing and sustaining above Rs 436 will lead towards Rs 460-470 levels in coming days. Stop loss can be kept at Rs 405."

Abhijeet from Tips2trades said, "Hindalco looks bullish on the daily charts with strong resistance at Rs 423. A daily close above this resistance could lead to targets of Rs 438-445 in the near term. Support will be at Rs 411."

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher said, “The stock has indicated consolidation and bottoming out near Rs 380-385 zone after the decent correction with a pullback good enough to improve the bias and sentiment to just move past the 50EMA and 200DMA levels anticipating for further rise in the coming days. The RSI has very well reversed from the oversold zone and indicated a steady rise to strengthen the trend and with the chart looking good, one can buy the stock for an upside target of Rs 458-462 levels keeping the stop loss of Rs 400.”

Meanwhile, Hindalco Industries reported a 63% fall in net profit to Rs 1362 crore in the December 2022 quarter against a profit of Rs 3675 crore in the corresponding quarter of the previous fiscal.

However, net sales rose 5.73% to Rs 53151 crore in the Q3 of last fiscal against Rs 50,272 crore in the third quarter of the previous fiscal. EBITDA fell 51.48% to Rs 3548 crore in Q3 against Rs 7312 crore in the corresponding quarter of the previous fiscal.

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