Hindalco: Temporary overbought
On July 29th, the stock has registered an all-time high of Rs. 474. In this month, the stock has rallied nearly 25 percent. On Thursday, after a strong opening, the stock rallied from Rs. 420 to 474.
On the daily and weekly charts, the stock has formed a breakout continuation pattern which is grossly positive for Hindalco Ltd.
However, intraday chart texture indicates a temporary overbought situation and traders may take a cautious stance near Rs. 474 level.
As long as the stock is trading above Rs. 435, uptrend formation is likely to continue up to Rs. 474-495. On the flip side, dismissal of Rs. 435 could possibly trigger a quick short-term correction up to Rs. 420-400.