Domestic brokerage firm ICICI Securities said the stock price of National Aluminum (Nalco) has been on a steady rise and had earlier broken out above its four-year limit in October 2021.
“The overall growth since October 2020 is well indicated by continued demand and an incremental buying opportunity in the lower band of the rising channel. The stock has recently rebounded taking support at the lower band of the ascending channel, thus providing an opportunity for fresh entry,” the note said.
ICICI Securities expects metal stock To continue your positive momentum and head upward 116 level (target price) with three month time frame and stop loss 91.
The stock recently rebounded taking support at its 100-day EMA (currently placed at) 93) has acted as key support since November 2020, highlighting the positive price structure, the note highlighted.
As per the BSE shareholding pattern, Indian veteran investor and stock market trader Rakesh Jhunjhunwala holds 1.36% stake in PSU company NALCO as of September 2021. NALCO shares have given multibagger returns as the metal stock has gained over 114% in a year. NALCO is a Navratna CPSE under the Ministry of Mines. The company has integrated and diversified operations in mining, metals and power.
Meanwhile, “Nifty Metal Index is seen as rebounding after the 5200-mark support, which is a) Long Term Rising 200 Day Moving Average b) 80% retracement of the June-October 2021 rally. Rebounding is seen after turmoil, a retracement of just 38.2% from last five-month strong rally (3072-6312), thus providing an opportunity for fresh entry in metal stocks with favorable risk-reward setup, said ICICI Securities. does.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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