For the past two weeks, Hindalco has made several attempts to close above Rs 600 -- finally it happened on Friday when the stock closed at Rs 632. This close should be viewed as a fresh buy signal. The stock has formed 2 higher bottoms and a close above Rs 600 means that it has crossed its immediate resistance levels. The major resistance level for the stock is only at Rs 880.The oscillators have also shown positive signs. The RSI and MACD have managed to post higher bottoms and are now in a positive mode. The moving averages are also in favour of a bull run.
For those who bought at lower levels, sticking to their investment seems to be the best policy. For short-term traders, too, the stock offers some room for appreciation. Long positions can be taken with a stop loss of Rs 595.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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