ICICI Securities sees strong gain for this Navratna stock in 3 months of holding

Market


With a market valuation of 15,354.24 Cr, National Aluminium Company Limited (NALCO) is a Navratna CPSE company. It is one of the country’s largest integrated bauxite, alumina, aluminium and power-generating companies. The brokerage company ICICI Securities is bullish on the stock as it claims that on Friday closing NALCO has given a breakout above six months rectangular consolidation signals resumption of up move and offers fresh entry opportunity as well as weekly RSI in an uptrend and rebounding taking support at its nine-period average thus validates positive bias. The research analysts of ICICI Securities have recommended to buy the stock in a price range of 80-83, and maintaining a stop loss of 76.00, and have set a target price of 94.00. The brokerage has set a target frame of 3 months for the stock to hit its target price.

“The Nifty Metal index regained its upward momentum in the past few sessions led by expectations of higher prices amid China reopening and sharp decline in dollar index. The index is currently poised for a breakout from nine month consolidation and mid/small metal players are seen catching up their large cap peers. We remain constructive on National Aluminium as the stock logged a breakout above the last six month’s base formation indicating conclusion of corrective phase that augurs well for resumption of up trend,” said the analysts.

“In the smaller time frame the stock has witnessed a faster retracement of the last 15 week’s decline ( 83- 70) in just three weeks. The base of the entire six months rectangular consolidation is placed at the 200 weeks EMA signalling positive price structure. We expect the stock to maintain positive bias and head towards 94 levels in the coming months as it is the 80% retracement of the MayJune 2022 decline (100-67),” claimed the analysts.

The company has informed stock exchanges by saying that “In terms of Regulation 29 of SEBI (LODR) Regulations, 2015, this is to inform you that, a meeting of the Board of Directors of the Company is scheduled to be held on Tuesday, the 17th January, 2023 inter‐alia to consider Interim Dividend, if any for the financial year 2022‐23.”

The shares of NALCO closed today on the NSE at 83.60 apiece, up by 0.48% from the previous close of 83.20. The stock recorded a total volume of 14,008,284 shares compared to the 20-Day average volume of 16,155,142 shares.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.


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