HAL near ₹4,420 support, analyst sees rebound potential
Hindalco Industries Limited (HAL) is currently consolidating near the crucial support zone of ₹4,420-4,450 ahead of its Q1 FY26 results. The stock has been trading in a narrow range in recent times, and its price action is being closely watched by investors and analysts alike.
According to Deepak Pal, an analyst at Emkay Global Financial Services, if HAL can hold on to this support zone, it could potentially rebound to the levels of ₹4,650-5,100. However, if the stock breaks below ₹4,120, it may lead to further weakness.
So, what is driving this analyst’s optimism? Let’s dive deeper into the reasons behind his bullish stance on HAL.
Strong Order Inflows
Firstly, HAL has been witnessing strong order inflows in recent times. The company has received several large orders from domestic and international clients, which is likely to drive its growth prospects in the coming quarters. In fact, HAL’s order book has been growing steadily over the past few years, and this trend is expected to continue.
Robust Balance Sheet
Secondly, HAL has a robust balance sheet, which provides a solid foundation for its future growth. The company has a significant amount of cash and cash equivalents on its balance sheet, which gives it the flexibility to invest in new projects and take advantage of new opportunities.
Dividend Yield
Thirdly, HAL offers an attractive dividend yield of around 2.5%, which makes it an attractive option for income-seeking investors. The company has a history of paying consistent dividends to its shareholders, and this trend is expected to continue.
Technical Chart Analysis
From a technical perspective, HAL’s chart suggests that the stock is trading in a narrow range, with support at ₹4,420-4,450 and resistance at ₹4,650-5,100. The Relative Strength Index (RSI) is also indicating a neutral reading, which suggests that the stock is neither overbought nor oversold.
What to Expect from Q1 FY26 Results
HAL is scheduled to announce its Q1 FY26 results soon, and the market is eagerly awaiting the outcome. The company’s results are likely to be driven by its strong order inflows and robust balance sheet. Analysts are expecting the company to report a healthy set of numbers, with earnings per share (EPS) expected to grow by around 10-15% year-on-year.
Conclusion
In conclusion, HAL is consolidating near the crucial support zone of ₹4,420-4,450 ahead of its Q1 FY26 results. Analyst Deepak Pal sees a rebound potential if this zone holds, with upside to ₹4,650-5,100. Strong order inflows and a robust balance sheet keep the long-term outlook bullish, despite near-term caution. However, if the stock breaks below ₹4,120, weakness may extend.
Investors who are looking to take a position in HAL should wait for the stock to break out of its current range and move above ₹4,650 before considering a long position. Meanwhile, those who are looking to sell the stock should wait for it to break below ₹4,120 and move towards the support zone of ₹3,800-4,000.
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