Buy Hindalco for target of Rs 103: Gupta

Written By Unknown on Jumat, 26 April 2013 | 20.07

Amit Gupta of ICICI Direct advised buying Hindalco at around Rs 95-97, for a target price of Rs 103.

Gupta told CNBC-TV18, "March 28 that is last expiry, we saw that the market was around 5680 but Hindalco was around Rs 87.5-88 levels. Thereafter Nifty went down by 200 points but it didn't breach that day's low. So that means there is some strength in Hindalco and it has outperformed the other metal stocks in the move afterwards and we have seen around 10-15 percent of positions have also been closed since then. However if you look at the rollovers yesterday they were higher in Hindalco and Tata Steel more."

He further said, "So I believe people have rolled the short positions but the underlying is showing some kind of strength that is why I am betting more on the short covering in Hindalco particularly. Rs 95-97 this particular range can be used to buy that stock. Look for a target of Rs 103. 50-day moving average plays around Rs 98. My gut feeling is it should be taken out so on the downside you keep a stop loss at Rs 92 which is the last trailing one month higher band. So it will take lot of time to breach that level on the downside now."



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