Buy Hindalco for target of Rs 218: IIFL

MUMBAI: IIFL is of the view that Hindalco has signaled a breakout from Inverted Head & Shoulder pattern. It has advised to buy the stock for target of Rs 218.

“Hindalco on the daily chart has signaled a breakout from Inverted Head & Shoulder pattern after consolidating for almost a month. The amplitude of the pattern corresponds to Rs 20, giving a conservative target of Rs 230 in the near term. The RSI has been trading with a positive crossover which supports buying argument in the counter.

The daily MACD has also generated fresh buy signal which makes risk reward ratio more favorable from current levels. We advise buying stock in the range of Rs 208-209 with stop-loss of Rs 204.5 for target of Rs 218,” the report said.

Note: Trading idea valid for time-period of 1-3 days.