The analyst suggests that a pullback or consolidation may be a healthy move before the next move higher.
Hindustan Copper slipped 3.6% on Friday, cooling off after a five-day rally that added another 7% on Thursday and pushed the stock near its 52-week high of ₹353.
The surge was fueled by rising global copper prices and growing concerns over supply shortages, which have boosted sentiment across the metals sector.
Fundamental View
SEBI-registered analyst Finkhoz said the company’s financial performance has strengthened in recent quarters. In June, Hindustan Copper reported sales of ₹516 crore and a net profit of ₹134 crore, both higher than in previous quarters.
The operating profit margin rose to 41%, indicating that the company is generating more income per rupee of sales. He added that profits have grown consistently for three consecutive quarters, while earnings per share (EPS) reached ₹1.39, marking one of the strongest runs in years.
Technical View
On the technical front, Finkhoz noted that the stock staged a significant breakout above the ₹292 resistance level, quickly rising to ₹328 within a few days. This surge was backed by volumes of 61.65 million shares, far above normal trading levels, which he said reflects strong institutional participation.
However, the relative strength index (RSI) is now at 83.59, firmly in the overbought zone. According to Finkhoz, this suggests the stock is overheated in the short term and could need a pause or consolidation phase before its next move higher.
Global Drivers
Finkhoz pointed out that Hindustan Copper’s rally has been helped by tailwinds from the sector. The rise in global copper prices has made copper producers a preferred investment choice.
Additionally, the Indian government is pushing to expand copper mining and domestic metal production under its “Make in India” initiative for strategic minerals. He said demand linked to green energy and electric vehicles is further boosting expectations for the company’s long-term growth.
Trading Strategy
While the analyst described the stock’s chart as “super bullish,” he cautioned that strong rallies are often followed by small corrections or sideways consolidation.
For investors who missed the early uptrend, Finkhoz suggested watching for pullbacks toward the ₹292–₹300 range as potential entry opportunities rather than buying during peak momentum.
What Is The Retail Mood?
On Stocktwits, retail sentiment for Hindustan Copper was ‘extremely bullish’ amid ‘high’ message volume.
Hindustan Copper’s stock has risen 27.9% so far in 2025.
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