: Previous Price Drop: https://www.tradingview.com/x/OwWv09rb/ The chart highlights a 48.24% drop (around ₹285.10) in Hindalco’s stock price during the 2022–2023 period. This significant decline was followed by a strong recovery, which indicates a sharp downtrend during that period, possibly caused by broader market trends or sector-specific issues. Recovery and Uptrend:
Following the bottoming out, the stock has seen a recovery of 51.67% (₹305.20). The recovery has taken the stock to the current price levels of around ₹682.20. This reflects a V-shaped recovery, a common pattern after significant market corrections, signaling that Hindalco is in a strong uptrend phase. Consolidation Phase:
After the recovery, the stock seems to be in a sideways consolidation pattern. This is typically seen when the market is gathering momentum for the next potential move. The stock price has been fluctuating in the ₹600–₹700 range, indicating indecision or profit booking. Volume Analysis:
The Cumulative Volume Delta (CVD) at the bottom shows both buying and selling pressure, indicating that the stock is attracting both buyers and sellers during this consolidation. Higher volumes at critical price levels are often a sign of interest from institutional investors. Possible Opportunities: Breakout Potential:
The stock is trading near ₹680-700. A strong breakout above ₹700 with high volume could signal a continuation of the uptrend towards ₹850-900, as indicated by the projection box. Based on the historical movement, the next upward target could be in the ₹900 range. Risk of Correction:
If the stock fails to break out and sustains below ₹600, it might indicate the start of a correction, with possible support levels around ₹500-550. Key Considerations: Sector Influence: Hindalco is heavily influenced by the aluminum and metal sector. Global metal prices, economic conditions, and government policies on mining and exports will play a critical role in the stock's performance. Macro Environment: Keep an eye on inflation, interest rates, and commodity prices, as these can have a direct impact on Hindalco's profitability. Conclusion: The stock has shown a strong recovery from its lows, but the current consolidation suggests a wait-and-watch approach. A breakout above ₹700 with good volume could be a buying opportunity with a target of ₹850-900. If the stock breaks below the ₹600 level, there might be a deeper correction. This chart shows a balanced scenario of risk and reward, making it important to monitor the breakout and support levels for trading opportunities.