Big movers on D-Street: What should investors do with Hindalco and HAL?

Benchmark Sensex declined by 241 points while broader Nifty fell for the seventh session in a row on Monday following a sell-off amid unabated foreign fund outflows and weak leads from the US markets.

Stocks that were in focus include names like Hindalco, which rose nearly 4% and HAL, which declined marginally by 0.006% on Thursday.

Here’s what Ameya Ranadive CMT CFTe, Sr Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.

Hindalco Industries

Hindalco has faced a notable decline of 20% from its 52-week high over the last two months, reflecting short-term weakness. However, the stock is currently showing signs of recovery, with the RSI improving to 44 from an oversold level of 31, hinting at a potential reversal.

The stock is trading near a well-established support zone of Rs 625-620, which has acted as a strong base multiple times this year. This level holds significant technical importance, offering a favorable risk-reward scenario for long-term investors and traders alike.

Hindalco presents a buying opportunity at current levels, with potential targets of Rs 715 and Rs 750. However, if the stock closes below Rs 620, the positive view will stand negated.

Hindustan Aeronautics (HAL)

HAL has undergone a steep correction, losing 31% from its 52-week high in just four months. The RSI is currently at 39, indicating oversold conditions and raising the possibility of a technical rebound.

The stock is hovering around a crucial support zone of Rs 3,900-4,100. A sustained move above Rs 4,150 would be essential to re-establish bullish momentum and confirm the uptrend. Without this confirmation, the stock may continue to face selling pressure.

HAL can be accumulated within the support range, targeting Rs 4,555 and Rs 4,700. A stop-loss at Rs 4,050 is advised to manage downside risk effectively.

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