Hindalco share price today: Shares of Hindalco Industries were in uptrend today with the counter gaining nearly 7 per cent as aluminium prices increased due to supply disruptions in the Middle East. The stock opened about 1 per cent higher at ₹930 and touched an intraday high of ₹983.50, up 6.7 per cent.
Aluminium prices rise on Middle East supply concerns
The Middle East crisis has impacted the aluminium sector as Qatari smelter Qatalum announced to shut down and shareholder Norsk Hydro issued a force majeure to customers. QatarEnergy, which owns 51 per cent in the other Qatalum shareholder, Qatar Aluminum Manufacturing Co, had earlier said it was halting production of some downstream ??products, including aluminium. This came a day after the suspension of liquefied natural gas production due to Iranian drone attacks.
Supply worries have also increased because of shipping disruptions through the Strait of Hormuz, considered a crucial global chokepoint for maritime trade and energy supplies.
The Middle East contributes a significant portion of the world’s aluminium production. According to Bloomberg data, the region accounts for about 9 per cent of the world’s aluminum production capacity and prices typically have been sensitive to spikes in regional tensions.
Meanwhile, aluminium prices rose nearly 1.47 per cent to Rs 338.50 per kg in futures trade as speculators built up fresh positions amid a positive trend in the spot market. On the Multi Commodity Exchange (MCX), the price of aluminium for delivery in April increased Rs 4.90, or 1.47 per cent, to Rs 338.50 per kilogram in 194 lots.
Hindalco stock: Analysts bullish
Nilesh Jain, VP and head of derivatives and technical research at Centrum Broking, said the rally in Hindalco was in line with the strong movement in the aluminium sector. From a technical perspective, the stock is trading above all key moving averages, which signals a bullish trend.
He said Hindalco has given a breakout above ₹935 in today’s session and the buying was supported by higher trading volumes and long build-up in derivatives.
“Hindalco is looking strong after giving a fresh breakout above ₹935. The structure appears strong for an upside up to ₹1,020 – ₹1,030. Positionally, Hindalco may hit a fresh record high from here. It is a buy on decline candidate,” the analyst said.
Amol Athawale, VP technical research, Kotak Securities, echoed a similar view, saying after a short-term correction, the stock has formed a positive reversal pattern on daily and weekly charts. For positional traders, ₹935 acts as an important support and as long as the stock stays above this level, the uptrend will likely to continue.
“On the upside, Hindalco could move towards ₹1,035 – ₹1,045 zone. A move below ₹935 would make the uptrend vulnerable,” he added.
======================= (Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)
