Stock Name: Hind Copper CMP: 275 Duration: 3-4 months
Target: 330 Stoploss: 240

Hindustan Copper Ltd. is a central public sector undertaking under the ownership of the Ministry of Mines, Government of India. Volumes in the stock has increased recently after the news of company’s plans to bid for critical minerals and rare earth element blocks along with other PSU's like Indian Oil Corporation Ltd (IOCL), GAIL (India) and RITES as part of its diversification strategy. The company also plans to enter into pact with Coal India Ltd (CIL) for taking part in activities pertaining to copper and other critical minerals exploration to be carried out in Chile. Company’s operating profit margin is one of the highest in the segment with strong financials. The stock continued to underperform against main indices since last September 2024 but now after trading in range of 200-250 for the better part of the first year, the stock has finally broken out of its consolidation. Stock also has made rounding bottom pattern on daily chart and recently had seen breakout from its neckline. Rounding bottoms are found at the end of extended downward trends and signify a reversal in long-term price movements. As the rounding bottom takes shape, trading volume tends to decrease. This decline in volume suggests that the intense selling pressure seen during the downtrend is waning, and the market is stabilizing. Lower volume reflects reduced investor interest in selling the asset at lower prices. Market participants see value at the lower level after reduced investor’s interest in selling, they start to accumulate which materialize into increasing price along with volume. This can be clearly seen in the chart. We expect the ongoing momentum to continue till 330 and so traders can initiate long positions with expected target of 330 and stoploss of 240 closing basis which happens to be recent swing low.

Read more: Hindustan Copper breaks out from a rounding bottom pattern; stock showing signs of revival after 20% fall from highs