Buy Nalco; target of Rs 445: IndiaInfoline

IndiaInfoline is bullish on National Aluminium Company (Nalco) and has recommended buy rating on the stock with a target of Rs 445, in its January 04, 2010 research report. "On the daily chart, National Aluminum has given a trendline breakout after closing at its 52-week high. The stock has rallied sharply over the past few weeks holding on to its short-term support trendline. This week, we saw Nalco gaining fresh upside momentum after crossing over its stiff technical resistance levels of Rs 404-407 accompanied by high volumes." "On Thursday, the stock rallied by 7% in a rangebound market, confirming the bullish set up. The other supportive technical oscillators RSI and Stochastic are exhibiting positive divergence which signifies the up move may extend to the levels of Rs 445. Based on above observations, we recommend high risk traders to buy the stock in the range of Rs 414-422 for target of Rs 440 and Rs 445. It is advisable to maintain a stop loss of Rs 406 on all long positions," says IndiaInfoline research report.