The share price of National Aluminium (Nalco) is in steady up trend and earlier during the year in October 2021 has generated a breakout above its four year range signalling a structural turnaround, said domestic brokerage firm ICICI Securities.
“The entire up move since October 2020 is well channelled signalling sustained demand and incremental buying opportunity at the lower band of the rising channel. The stock has recently rebounded taking support at the lower band of the rising channel thus offers fresh entry opportunity,” the note stated.
ICICI Securities expects the metal stock to continue with its positive momentum and head higher towards ₹116 levels (target price) with three months time frame and a stop loss of ₹91.
The stock has recently rebounded taking support at its 100 days EMA (currently placed at ₹93) which has acted as major support since November 2020 highlighting positive price structure, the note highlighted.
As per BSE shareholding pattern, Indian ace investor and stock market trader Rakesh Jhunjhunwala holds 1.36% stake in PSU company Nalco as of September 2021. Shares of Nalco have given multibagger return as the metal stock has surged over 114% in a year. Nalco is a navratna CPSE under Ministry of Mines. The company has integrated and diversified operations in mining, metal, and power.
Meanwhile, “Nifty Metal index is seen rebounding after taking support around 5200 mark which is a) value of long term rising 200 day moving average b) 80% retracement of June-October 2021 rally. The index is seen rebounding after five months of shallow retracement of just 38.2% of its preceding five months strong rally (3072-6312), thus offering fresh entry opportunity in metal stocks with favourable risk-reward setup,” ICICI Securities added.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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