Hindalco Industries gives channel breakdown
The stock of Hindalco Industries was trading in an upward channel since March 2020. However, on Friday, the stock has given a breakdown of the upward sloping trendline of the rising channel, which suggests a correction before another northward journey. This breakdown is confirmed by a relatively higher volume.
Along with this channel breakdown, the stock has also managed to close below its weekly pivot and short term moving averages, i.e. 13-day EMA and 20-day EMA. Interestingly, the RSI has given Adam & Adam double top patterns breakdown, which is also a bearish sign. The momentum indicator, MACD line, has crossed under the signal line, which resulted in the histogram turning negative.
Further, the Ichimoku chart on the daily timeframe is clearly giving a negative view as it closed below the KS and TS lines.
Going ahead, the level of Rs 153 is likely to act as a support for the stock, and a sustainable move below this level would invite further selling. Hence, there are high chances of retesting its recent swing low of Rs 143.30 registered on June 29, 2020. On the upside, resistance is seen in the zone of Rs 162-Rs 164 level.
On Friday, the stock of Hindalco Industries closed at Rs 156.20 per share, dipped by 3.58 per cent. The stock opened at Rs 159.95 per share and hit an intraday high of Rs 160.95 and a low of Rs 154.30 per share on NSE.