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HINDCOPPER - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.7

Last Updated Time : 04 May 26, 11:57 am

Technical Rating: 3.7

Stock Code HINDCOPPER Market Cap 51,721 Cr. Current Price 535 ₹ High / Low 760 ₹
Stock P/E 77.5 Book Value 30.9 ₹ Dividend Yield 0.27 % ROCE 23.8 %
ROE 18.7 % Face Value 5.00 ₹ DMA 50 531 ₹ DMA 200 439 ₹
Chg in FII Hold -0.22 % Chg in DII Hold -0.18 % PAT Qtr 156 Cr. PAT Prev Qtr 186 Cr.
RSI 49.3 MACD 8.33 Volume 49,81,253 Avg Vol 1Wk 49,96,186
Low price 198 ₹ High price 760 ₹ PEG Ratio 10.3 Debt to equity 0.05
52w Index 60.0 % Qtr Profit Var 149 % EPS 6.90 ₹ Industry PE 73.2

📉 Chart Patterns & Trend: HINDCOPPER is trading slightly above its 50 DMA (₹531) and well above its 200 DMA (₹439), confirming a bullish medium-term trend. Current price (₹535) is near support, suggesting consolidation with potential upside toward resistance at ₹560–₹580.

📊 Momentum Indicators: RSI at 49.3 indicates neutral momentum, neither overbought nor oversold. MACD at 8.33 confirms mild bullish crossover. Bollinger Bands show price stabilizing near the mid-band, signaling consolidation.

📈 Volume Trends: Current volume (49.8 lakh) is in line with average weekly volume (49.9 lakh), reflecting steady participation without strong accumulation or distribution.

🎯 Entry Zone: ₹525 – ₹540 (near support, favorable risk-reward).

🚪 Exit Zone: ₹560 – ₹580 (near short-term resistance; profit-taking zone).

🔎 Status: The stock is consolidating near support with mild bullish bias. Sustained breakout requires price action above ₹580–₹600.


Positive

  • Strong ROE (18.7%) and ROCE (23.8%) highlight operational efficiency.
  • Quarterly profit growth (+149%) supports earnings momentum.
  • Low debt-to-equity ratio (0.05) ensures financial stability.
  • Trading above both 50 & 200 DMA confirms medium-term bullish trend.

Limitation

  • High P/E (77.5) compared to industry average (73.2), suggesting overvaluation.
  • PEG ratio of 10.3 signals stretched valuation relative to growth.
  • Dividend yield of 0.27% is negligible.
  • Quarterly PAT declined (₹156 Cr vs ₹186 Cr previous quarter).

Company Negative News

  • FII holdings decreased (-0.22%), showing reduced foreign investor confidence.
  • DII holdings decreased (-0.18%), reflecting weaker domestic institutional support.

Company Positive News

  • EPS of ₹6.90 supports valuation stability.
  • Strong YoY profit growth (+149%) highlights operational turnaround.

Industry

  • Metals sector trading at industry PE of 73.2, close to HINDCOPPER’s valuation.
  • Sector outlook remains positive with global copper demand growth.

Conclusion

✅ HINDCOPPER is technically consolidating but supported by medium-term bullish signals. Fundamentals show strong growth but valuations are stretched. Short-term traders may consider entry near ₹525–₹540 with exits around ₹560–₹580. Long-term investors should wait for confirmation above ₹600 before fresh accumulation.

Would you like me to extend this into a sector overlay comparison with peers like Hindalco, Vedanta, and NMDC to benchmark HINDCOPPER’s relative strength in the metals space?

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