Expert views on IndusInd Bank and Hindalco in the short term
Expert views: IndusInd Bank is a new propagation of Indian bank headquartered in Pune. The bank offers commercial, transactional, and net banking products and services. Hindalco Industries Limited an Indian aluminum and copper manufacturing company. It was a branch of the Aditya Birla Group.
Moreover, a few days back the Indian markets affix almost 3 percent but selling in the last couple of sessions impel Nifty below 15,000. Generally, it was a difficult week for a power marketer because the short-term market tried to decide its direction.
While the market did manage to recover well from the preceding Friday’s level, we have some doubts. To extent that, levels are cover, 15,100 and 15,273 are the next problems.
However, on the lower side, 14,760 – 14,467 are the key supports. If we take a reflect at the weekly chart, we are still unsure whether the market has enough strength to go behind recent highs around 15,400 – 15,550 without seeing any decent price or timewise correction.
Even so, at the same time, they are just refusing to fall as well. It would be interesting to see how markets behave in the first half of this week. Moreover, it should then optimally give us some fair idea of where it is heading in the short term.
Moreover, traders guide to focus on stock-specific moves and should avoid self-assertive attachment overnight positions. Products have seen some decent correction and hence, it would be interesting to see how this theme plays out. The financial space is placed at a crucial level and any weakness eventually short-term breakdown.
Pick up two sell calls for the next 2-3 weeks
IndusInd Bank| LTP: Rs. 1,039.90 | Target price: Rs. 960 | Stop loss: Rs. 1,085 | Downside: 8%
This stock has been one of the outperformers in the financial space for the last few months. Moreover, the stock has been fought to surpass Rs. 1,100 – 1,120 levels.
Breakdown to go behind these levels, despite several attempts, eventually resulted in decent profit-booking last Friday. However, one day’s fall in prices cannot be explained as a complete trend reversal. But on the lower period chart, we can see a range breakdown in prices.
Hindalco Industries| LTP: Rs. 337.85 | Target price: Rs. 319 | Stop loss: Rs. 348| Downside: 6%
Products across the globe have been enjoying a strong bull run for the past six months. This week, we verified some healthy corrections in metal prices after a long time.
In order to Hindalco, this profit-booking exactly happened after reaching a key Fibonacci ratio of 161 percent placed around Rs. 350.
Every day graph, we can see price closing prove to below 5-day EMA along with a bearish crossover in the RSI-smoothened oscillator. Also, due to last week’s late correction, the weekly chart depicts a shooting star pattern that does not predict well for the bulls.