Hindustan Copper shares jump 6%, hit fresh 52-week high; here’s the trigger behind rally

Shares of Hindustan Copper witnessed strong buying interest in Wednesday’s trade, surging as much as 5.8 per cent to scale a fresh 52-week high of Rs 431.90 on the BSE. The state-owned miner’s stock opened on a bullish note against its previous close of Rs 407.85 apiece, extending its winning streak to the third consecutive session. 

At last check, the counter had cooled slightly but was still trading 4.65 per cent higher at Rs 426.80, hovering 57 per cent above its 52-week low of Rs 183.90.

The rally in the PSU stock is heavily influenced by a broader surge in the commodity market, where copper prices are shattering records, fuelled by deepening supply shortages. On the domestic front, data from the Multi Commodity Exchange (MCX) showed that copper futures for December delivery advanced 1.39 per cent to hit a record high of Rs 1,155.70 per kilogram.

Copper prices have jumped more than 40 per cent so far this year, touching a record peak of $5.95 per pound earlier. On the Comex, copper futures touched an intraday high of $5.61 per pound and were last seen trading at $5.58 per pound. 

From a technical standpoint, the rapid ascent in share price has pushed the stock into heated territory. According to data from Trendlyne, the relative strength index (RSI) is currently hovering at 72.3, placing it in the overbought zone. Furthermore, the money flow index (MFI) stands at a lofty 87.5, indicating the stock is strongly overbought.

Earlier on December 2, the company informed the exchanges about a strategic pact to expand its footprint in the mining sector. Hindustan Copper executed a Memorandum of Understanding (MoU) with NTPC Mining Ltd (NML) to jointly participate in upcoming auctions for copper and critical mineral blocks.