Today's Pick - Hindalco

We recommend a sell in Hindalco Industries from a short-term perspective. From the charts of Hindalco Industries, we note that after encountering resistance at Rs 220 in early January ’08, the stock declined and found support at Rs 150 levels in early February.

The stock rallied from this level and recently halted at the resistance at Rs 210. From this level, the stock declined and formed a bearish engulfing candlestick pattern more recently, indicating reversal in the trend. Besides, the stock tumbled 5 per cent on March 12. The daily momentum indicator, which was testing 60 levels, has begun to decline.

The weekly momentum indicator is featuring in the neural region. We also see that there is a decrease in volume for the past four trading sessions, which supports the downtrend. We are bearish on the stock in the short-term. We expect the stock to decline further and reach our target price level of Rs 170. Investors with a short-term perspective can sell the stock while keeping the stop loss at Rs 208.

Via Businessline