$HINDALCO – Technical Outlook

Hindalco is currently trading near a crucial higher low support zone, where buying interest has started to emerge after the recent correction. The stock is showing signs of a technical reversal while continuing to hold above its long-term rising trendline, indicating that the broader bullish structure remains intact. Although the stock is still trading below its short-term moving averages, the recovery in RSI from oversold levels suggests that selling pressure is gradually easing and momentum could improve in the coming weeks. The outlook remains positive over the next 6–8 weeks as long as Hindalco sustains above the ₹980 level. Holding this support is likely to strengthen investor confidence and pave the way for a gradual recovery. The first key resistance is placed at ₹1,015. A decisive close above this level would confirm a bullish breakout and could accelerate buying momentum, with the stock likely to target ₹1,050, followed by ₹1,090. On the downside, a failure to hold ₹980 may lead to a retest of the ₹955–960 support zone. However, the major long-term support remains near ₹915, where the 200-day moving average and rising trendline converge. Unless this level is breached, the long-term trend is expected to remain constructive. From a sector perspective, the outlook for the Indian metal industry continues to improve. Strong demand from infrastructure, renewable energy, power transmission and electric vehicle manufacturing is expected to support aluminium consumption. In addition, the increasing substitution of copper with aluminium across several industrial applications due to its lower cost and lighter weight is enhancing long-term demand prospects. Government initiatives aimed at strengthening domestic metal production and critical mineral supply chains further support the sector's medium-term growth outlook.