Trending stocks: Here is why Nalco and Hindalco should be your watchlist!

The share price of NALCO jumped higher by more than 7 per cent on Friday while the share price of Hindalco soared by more than 3 per cent. Both NALCO and Hindalco and commodity shares and both the shares tend to do well when the commodity prices rise.  We have seen that the aluminium prices have risen by over 28 per cent in 2021 alone. The supply constraints in aluminium is what is keeping the prices firm for the commodity and hence NALCO and Hindalco are expected to remain in limelight. 

The aluminium prices are at elevated levels despite of the weak demand from China. The production uncertainties for Aluminium persist as the smelters operating activities are hampered by the stern environmental norms in China. 

China’s aluminium imports have increased owing to low domestic production and supply of aluminium. The Alumina prices rose following a fire at the Jamalco refinery in Jamaica making the supply of Aluminium making raw material tighter. With the aluminium prices expected to gain ground both Nalco and Hindalco can be expected to remain in the limelight. 

Nalco was amongst the top F&O gainers on Friday with the open interest built up seen in excess of 22 per cent. Comparatively Hindalco witnessed a gain in open interest of 4.82 per cent. 

The shares of Hindalco have bounced from its 30D EMA on Thursday. This week alone the stock is up by more than 6 per cent and is trading above its near-term moving averages. A marubozu candlestick chart pattern was also seen on Friday with the share of Hindalco closing at the highest point of the day. 

Similarly, the shares of Nalco reflected a price volume gain on Friday. A marubozu candlestick chart pattern was seen on Friday with the shares of Nalco managing to close at the highest point of the day in Friday trading session. 

Both Nalco and Hindalco should be on momentum investors and traders watchlist.