Hindustan Copper shares turn multibagger in six months; rally stretches over 101%, what lies ahead?

Shares of Hindustan Copper Ltd continued their strong upward momentum on Monday, extending recent gains to reinforce the stock's multibagger status over the past six months. The scrip rose 2.01 per cent to close at Rs 552.80 on the BSE. At this level, the stock has surged 101.35 per cent in six months and jumped 48.66 per cent over the past one month.

The sharp rally comes amid sustained strength in global copper prices, which has kept the domestically focused mining company firmly on investors' radar.

However, heightened volatility in select counters has prompted increased regulatory scrutiny. Bourses BSE and NSE have placed the securities of Hindustan Copper under the short-term Additional Surveillance Measure (ASM) framework. Exchanges typically move stocks into short-term or long-term ASM frameworks to caution investors and enhance monitoring during periods of sharp price movement.

Select market experts believe Hindustan Copper's recent rally warrants a cautious approach at current levels. Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, said, "The stock has witnessed a tremendous rally. Investors with a medium- to short-term view can consider taking some profits from the table. Those with a long-term perspective can also do the same. It is a stock to buy on dips at this point of time."

From a technical perspective, AR Ramachandran, part-time Sebi-registered research analyst at Tips2trades, noted, "Hindustan Copper stock price is bullish but also overbought on daily charts with next resistance at Rs 606. Investors should be booking profits as a daily close below the support of Rs 555 could lead to a downward target of Rs 475 in the near term."