Top buzzing stock: National Aluminium Company Ltd

In the past one year, the stock has generated over 125% returns to its shareholders.

National Aluminium Company Limited is a midcap company, engaged in the production of alumina, aluminium and power. With a market capitalization of Rs 20500 crore, it is one of the strongest companies in its sector. The company has successfully posted good numbers annually in the last four years. It has also reported more than industry-average net profits in the past five years.

In the past one year, the stock has generated over 125% returns to its shareholders. Moreover, it has reported a rise of 12% in its share price in just one month. The stock has also outperformed the sector and most of its peers during this period.

The stock surged nearly 1% in the first hour of the trade. With this, the stock trades higher above its prior swing high. In the past, it had made a V-shape recovery and has moved sharply upwards thereafter. Along with this, the technical view of the stock is bullish too. The MACD has given a fresh buy signal above the zero line. Moreover, the RSI at 60 indicates strong strength. The stock trades above all the short term and long term moving averages and these averages are upward sloping, which indicates an uptrend of the stock. The On Balance Volume (OBV) is on a rise, which hints towards the upside potential of the stock.

The level of 115 happens to be the 61.8% Fibonacci retracement level in the stock’s prior downtrend and is an important resistance level. Any closing above this level shall bring upside to the stock. On the technical chart, we see that the volumes recorded have been above average, which highlight larger participation of the stock. With current bullishness, the stock is expected to take out the above-mentioned level.

Thus, considering price action and technical parameters, backed by above-average volume, the stock has the potential to deliver decent profits to positional traders.