Trending stock: Hindalco
Hindalco Industries has attracted huge value buying interest today and has seen strong trading activity despite the bleeding market.
Hindalco Industries Limited is an industry leader in aluminium and copper. The product range of the company includes alumina chemicals, aluminium rolled products, aluminium foil and packaging, plus it has copper products like copper cathodes and continuous cast copper rods. With a market capitalization of about Rs 117000 crores, it is one of the leading company in its sector.
The Indian indices on Thursday saw a massive gap-down opening amid bad global cues. The advance-decline ratio has largely turned in the favour of bears and thus, the overall market sentiment is in a bearish shape. However, some stocks showed a strong recovery from lower levels on account of value buying. One such stock is Hindalco Industries, which has attracted huge value buying interest today and has seen strong trading activity despite the bleeding market. Due to this movement, the stock has attracted investors and medium risk traders.
The stock of Hindalco Industries Ltd is the only stock trading positively among Nifty stocks. It opened over 3% lower but witness strong buying thereafter. With this, the stock trades above 20-DMA and looks resilient to market fluctuations. The stock has also recorded huge volume which is greater than 30-day and 50-day average volume. This highlights larger buying in the stock. On the technical chart, the stock has formed a bullish candle with its open=low. The momentum oscillators and technical indicators point towards neutrality in the stock. The 14-period daily RSI is trading just above 50 and is in the sideways territory. The stock has the potential to provide good returns in the medium to long term once the market is stabilized. Medium-term traders and investors can consider this stock is in their portfolio, keeping the positions light.
In times of uncertainty, it is a sensible approach to remain invested in such resilient stocks as they protect investors' wealth and provide cushioning to the portfolio.
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