Premier Energies, Hindustan Copper: What technical charts signal for these 2 stocks

Indian equity benchmarks extended their losing streak for a fifth straight session on Friday, as broad-based selling across sectors dragged the indices lower. The 30-share BSE Sensex declined 605 points or 0.72 per cent to close at 83,576, while the NSE Nifty50 slipped 194 points or 0.75 per cent to settle at 25,683.

Against this backdrop of sustained market weakness, AR Ramachandran, part-time Sebi-registered research analyst at Tips2trades, shared his technical views on two stocks -- Premier Energies Ltd and Hindustan Copper Ltd.

Commenting on Premier Energies, Ramachandran stated that the stock appears bearish on the daily charts. He advised investors to consider fresh entries only after a decisive close above the resistance level of Rs 815.

The stock is trading below all its key simple moving averages, including the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day SMAs. The 14-day Relative Strength Index (RSI) stands at 36.01. A level below 30 is defined as oversold, while a value above 70 is considered overbought.

BSE data shows that Premier Energies is trading at a standalone and consolidated price-to-earnings (P/E) ratio of 183.61 and 21.01, respectively, with a price-to-book (P/B) value of 18.85. The company reported standalone and consolidated earnings per share (EPS) of 183.61 and 21.01, while its return on equity (RoE) stood at 10.28.

According to Trendlyne, the stock has a one-year beta of 1.54, indicating relatively high volatility.

On Hindustan Copper, Ramachandran noted that the stock has witnessed a sharp rally over the past six months. He said the next resistance is seen at Rs 606 and suggested that investors consider booking profits at current levels.

The stock is trading below its 5-day and 10-day SMAs but remains above the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. Its 14-day RSI is placed at 67.78.

Hindustan Copper's standalone and consolidated P/E ratios stand at 87.85 and 88.68, respectively, with a P/B value of 20.92. The company posted EPS of 5.93 on a standalone basis and 5.87 on a consolidated basis, while RoE was reported at 23.83. The stock carries a one-year beta of 2.05, pointing to high volatility.