Hindalco Industries has support at Rs 106: Harchekar

Hindalco Industries has support at Rs 106, says Amit Harchekar, IIFL India.

Harchekar told CNBC-TV18, "Hindalco Industries has been moving sideways. We have seen good pullback since last couple of days but it’s not able to take out a resistance zone of Rs 118-120 and that clearly means there is another top which is in place near Rs 118-119 levels. Support for Hindalco is placed all the way down to Rs 106 which turns out to be the neckline of the long-term head and shoulder. If that gets broken probably we might see it shifting, moving towards Rs 95-93 zone. So as of now if one want to initiate short positions in Hindalco, Rs 121 should be the stop loss and near term target would be close to Rs 110." He further added, "We have already initiated short positions in Apollo Tyres close to Rs 84 and we expect the stock to move lower towards Rs 74. So it's a sell on rally. If you are initiating short positions at current levels, Rs 84 turns out to be the stop loss and stock has broken down major support so I won't be surprised a 10% decline in next few days."