Hindalco Industries share expected to give 32 pct returns in 6 months on weak dollar, US-China trade talks outcome: Experts
Hindalco Industries share price is expected to hit Rs 275 per stock levels from current Rs 208 on weak dollar, positive hopes in US-China trade talks, say experts.
Hindalco Industries' share price is oscillating around Rs 208 after making a breakout of Rs 202 per stock levels in the last week. According to the stock market experts, the metal major is expected to hit around Rs 275 per stock levels in six months or two quarters as there are some positive hopes coming out from the December 15th US-China trade talks. They say that the weak dollar has further strengthened the outlook of Hindalco Industries shares as a weak dollar is always positive for metals and other commodity-oriented shares.
Speaking on the Hindalco Industries shares Gajendra Prabu, Analyst at HDFC Securities said, "A rising window candle has been witnessed on the daily chart on December 13, which is bullish continuation formation for the Hindalco Industries shares. It is a strong bottom reversal formation and its targets would be 60 per cent (Rs229) and 100 per cent (Rs243) distance of the Head to Neckline. Hindalco Industries stock is trading well above all its key moving averages of 21, 50 & 200 days exponential moving average (EMA)." On his advise to the stock market investors in regard to the Hindalco Industries shares Prabu said, "Traders can buy the stock at CMP of 208.25 and look to add on dips to Rs 194-195 band. Hold for the sequential upside targets of Rs 229 and Rs 243 levels in the next two quarters. Place a stop-loss of Rs 186.80 on a daily closing basis."
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However, Prakash Pandey, MD & CEO at Plutus Advisors said, "After the positive hopes coming out from the US-China trade talks, metal stocks are expected to outperform other sectors. since the Hindalco Industries has recently made a breakout above Rs 202 per stock levels, it is poised for an upside swing up to Rs 275 per stock levels in two quarters. However, in the short-term, I am expecting Hindalco Industries stocks to hit Rs 225 to Rs 230 per stock levels." On weak dollar's having its role in the Hindalco Industries share price Pandey said that the weak dollar is always good for commodity-oriented stocks. Since Hindalco Industries is a commodity-oriented stock, a weak dollar will also help Hindalco Industries shareholders to have better chances of profit-booking in both short-term and mid-term perspective. However, he advised stock market investors to maintain the stop loss at Rs 195 levels while taking buy position in the Hindalco Industries shares.