Hindustan Copper surged 10 percent hitting new 52-week high followed by Hindalco Industries, Tata Steel, JSW Steel, SAIL and JSPL which added 2-3 percent each.
The Indian stock market continues trading in the green led by metal stocks. Sensex is up 366.15 points or 0.72 percent at 51147.84, and the Nifty added 136.40 points or 0.91 percent at 15118.40.
NIfty Metal jumped over 3 percent led by gains from Hindustan Copper which surged 10 percent hitting new 52-week high of Rs 140.80 per share. The scrip has risen over 43 percent in the last 3 days.
Ruchit Jain, Senior Analyst – Technical and Derivatives, Angel Broking suggests holding the stock. “Considering that the support is far from its current market price and the RSI is in overbought zone, risk reward is not favourable for fresh buy now, but existing shareholders can continue to ride this trend until any reversal signs are seen,” he said.
Coal India share price was up 6 percent intraday gaining 12 percent in the last 3 days after the company said that its Board may consider a second interim dividend. A meeting of the Board of Directors of the company will be held on March 5, 2021 to consider and approve payment of a second interim dividend for 2020-2021 if any.
The other gainers included Hindalco Industries, Tata Steel, JSW Steel, SAIL and JSPL which added 2-3 percent each.
Apart from Hindustan Copper, share price of Hindalco Industries, NALCO, JSPL and Vedanta hit new 52-week high on NSE. On the other hand, the most active stocks in terms of volumes included Coal India, NALCO, Hindalco Industries, Tata Steel and JSW Steel among others.
Brokerage firm Motilal Oswal has a buy recommendation on Hindalco with target of Rs 390 per share. It retains the stock as our top non-ferrous pick on the back of 26 percent EPS CAGR over FY21–23E, driven by strong volumes, margins, and deleveraging.
Prabhudas Lilladher also has a buy with target of Rs 360 and has increased EV/EBITDA multiple to 6.7x (earlier 6.0x) FY22E in wake of steady outlook on both Novelis and India operations and comfortable B/S.
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