Hindalco Industries share price has been in a strong bullish trend this year, helped by the soaring copper and aluminum prices. The stock jumped to a high of INR 625 on Monday, near its all-time high. It has soared by over 100% from its lowest point in 2022.
Copper and aluminium prices have surgedHindalco Industries is one of the biggest companies in India with a market cap of over $16 billion. This makes it the 57th biggest publicly traded company in the country. It is mostly owned by Aditya Birla, a leading Indian conglomerate.
Hindalco Industries has done well in the past few years, helped by the growth of the Indian economy. Data published by the statistics agency showed that the economy expanded by over 8% in 2023. And economists believe that the economy will grow by 8% this year.
In real times, the Indian economy rose to over $3.4 trillion, much higher than $1.83 trillion in 2020. Most of this growth happened because of high government and corporate spending. Government spending has been growing in the past few years as it expanded key infrastructure projects.
There is a likelihood that government, corporate, and consumer spending will continue growing in the coming years. Hindalco, as a leading aluminum and copper producer, has benefited from this trend.
The company is also benefiting from the soaring industrial metal prices. Copper surged to its highest point since June 2022. It has soared by almost 40% from its lowest point in 2020.
Aluminum price has also bounced back. It jumped to its highest point since May 2022 as it jumped by over 21% from its lowest point in 2020.
This performance is because of the growing global economy. Data released on Tuesday showed that China’s GDP rose by 5.2% in the first quarter, higher than the median estimate of 4.8%. Its industrial production rose by 6.1% on a YoY basis.
Industrial metal prices have also risen because of the actions of Western governments to ban Russia’s metals. The UK and the US barred Russian metals from key exchanges like the London Metals Exchange (LME), a move that will benefit Hindalco.
Russia is a major player in the metals market. It is responsible for about 6% of global aluminium market and 4% of copper.
Hindalco Industries has been doing well. Its financial results revealed that the company’s revenue jumped to over 77,464 rs crore in 2023 from the previous year’s 68,188 rs crore. However, the rising operations costs pushed its profit downwards to 4,875 rs crore.
Hindalco Industries share price forecast
Turning to the daily chart, we see that the Hindalco stock price has been in a strong bullish trend for a while. This rally intensified after the stock formed a golden cross pattern in July last year. Golden cross happens when the 200-day and 50-day moving averages make a bullish crossover.
Hindalco Industries shares jumped to a key resistance point at INR 621, a notable level since it was its highest point in January. It has formed what looks like a double-top pattern, which is a bearish sign.
Therefore, more upside will only be confirmed if the price moves above the crucial resistance at INR 621. If this happens, the stock will likely continue rising as buyers target the crucial resistance at 700 INR.
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