Shares of Hindustan Copper are witnessing a blistering run on Dalal Street, influenced by a broader surge in the commodity market where red metal prices are shattering records. On Friday, the PSU stock climbed as much as 8.65 per cent to touch a fresh 52-week high of Rs 474.25 on the BSE, surging past its previous close of Rs 436.50.
With Friday’s gains, the stock has rallied nearly 29 per cent in just the last six trading sessions. This surge has pushed the scrip to 15-year record high levels, marking its highest trading price since 2010. At the time of last check, Hindustan Copper stock was trading 8.11 per cent higher at Rs 471.90 on the BSE.
On the domestic front, data from the Multi Commodity Exchange (MCX) showed that copper futures for December delivery advanced over 5 per cent to hit a record high of Rs 1,224.95 per kilogram.
Overall, copper prices have jumped more than 42 per cent so far this year, having touched a record peak of $5.95 per pound earlier. On the Comex, copper futures touched a day’s high of $5.78 per pound and were last seen trading at $5.76 per pound.
Axis Securities said that Comex copper futures climbed to around $5.5 per pound in late December, hovering near a five-month high. Adding, “Prices were supported by tight global supply conditions and robust US economic data, with the economy expanding at its fastest pace in two years in Q3.”
“Strong consumer spending, exports, and industrial activity continued to underpin demand from copper-intensive sectors,” the brokerage firm said.
On the technical charts, data from Trendlyne indicates that the counter is currently flashing signs of being overbought. The day’s relative strength index (RSI) stands at 78.4, signalling that the stock is in the overbought zone.
Furthermore, the money flow index (MFI) is reading at 87.5, which Trendlyne classifies as strongly overbought.
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