NALCO Shares Jump 4%, Analyst Sees Further Upside

4% jump in Nalco's stock, analysts feel that this stock will rise further.

After several days of consolidation, the National Aluminum Company (NALCO) shares were up nearly 4% in the afternoon of March 17, forming a long bullish candle on the daily bar chart.

After the large candlestick on March 1, the stock consolidated and remained sideways for 10 sessions.

On March 1, it broke a downsloping resistance trendline adjacent to the January 19 and February 23 highs. The same trendline acted as support for the previous 10 sessions. Between March 1 and March 17, most trading days saw average volumes.

The stock is trading well above all key moving averages (9, 21, 50, 100, and 200-day exponential moving averages), which is another positive sign.

Experts expect the stock to break above Rs 90 in the next few sessions once it clears its January 19 high of Rs 86.55.

At 2:17 pm, NALCO was trading at Rs 84.95 on the NSE, up 3.6% from its previous close.

On the weekly scale, the stock has also formed a long bullish candlestick with a long lower shadow, indicating support buying at lower levels.

The momentum indicator, the Relative Strength Index (RSI), has been holding above 55 on the weekly chart, indicating positive momentum.

On the monthly time frame, NALCO formed a large bullish candlestick like a bullish engulfing pattern with higher highs and higher lows, which is a positive sign.

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