Buy Hindalco Industries on declines: Mathew

Technical Analyst, E Mathew is of the view that one can buy Hindalco Industries on declines.

Mathew told CNBC-TV18, "Hindalco has seen a magnificent rally if you look at it from the bottom of Rs 35. Fundamentally a lot of people are seeing great value in it but in my opinion the stock has virtually doubled from its bottom. I think the stock needs to consolidate at lower levels to attract buying interest again. The stock has to maybe at the level at which it would attract buying interest, which would be somewhere between Rs 50-52 zone. I think the trading bounce back is still not over in Hindalco because the fall has been phenomenal and once it consolidates around Rs 48-50 zone, the next upmove could possibly take Hindalco all the way to Rs 85-90 zone."

He further added, "As far as SAIL is concerned, I think the chart is not looking as good as that of Hindalco’s and the bounce back at best could take it to around Rs 105 zone. So given the choice between the two, both as trading bets, my strategy would be to buy Hindalco on declines."

Disclosure: Analyst associate company has sold out of money calls.

Source: Moneycontrol