Sizzling Stocks: Hindalco Industries (Rs 142.2)

Investors returning to market after the Diwali break converged on the metal counters and Hindalco spurted over 10 per cent on Friday. The stock was down in the dumps till last week, having lost more than 50 per cent from its January peak of Rs 251. It is, therefore, no wonder that bargain hunting has emerged at lower levels especially after the stock has been exhibiting resilience, holding above the key long-term support at Rs 120.

Investors can hold the stock as long as it holds above this level. The stop-loss can be little lower at Rs 110. Bounce from here can take the stock higher to Rs 170 or Rs 200 in the months ahead. Strong penetration of Rs 120 can however drag the stock lower to Rs 106 or even Rs 68 in the upcoming months.

India Cements (Rs 82.3)

India Cements too was bludgeoned in the ongoing correction and the stock was wallowing at multi-year lows till this August. It is just beginning to rear its head and a nascent uptrend is currently in progress that gathered steam last week.

Short-term hurdle for the stock is in the zone between Rs 100 and Rs 120. Failure to move beyond this zone will mean that it can decline below the recent low at Rs 62. If the stock moves beyond Rs 120, the next short-term target is at Rs 135. Key medium-term resistance is however at Rs 170 and investors with shorter investment horizon should divest their holding on failure to move beyond this level.

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