Why copper stocks are falling today — explained2 min read . Updated: 16 Jun 2021, 02:18 PM IST
- Copper stock majors Hindalco Industries, Hindustan Copper and Vedanta have received heavy beating in the intraday trade
Stock market news: Copper stocks extended the selloff triggered on Tuesday as stocks like Hindalco Industries, Hindustan Copper and Vedanta have received heavy beating since opening bell. At NSE (1:06 PM), Hindalco Industries share price was down 2.7 per cent, Hindustan Copper share price was down 3.32 per cent while Vedanta share price was 2.25 per cent lower from its yesterday close. According to experts, this selloff in the copper stocks is because of the copper price falling to its two month low. However, they maintained that it would work as sentimental trigger as this fall in the copper price is due to the Chinese announcement to use its copper reserves to go hard on the copper price.
Speaking on the reason for bearish trend in copper stocks Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Copper prices have fallen to its two month low. This copper price crash is triggered by the Chinese announcement to use its copper reserves instead of importing copper from the global merchandize. This has triggered selloff in the copper stocks but we can soon witness trend reversal as Chinese fear is more sentimental than fundamental in nature."
Expecting pressure in the metal sector for immediate short-term Ravi Singhal, Vice Chairman at GCL Securities said, "Chinese government has announced that it will use its copper, aluminium and zinc reserves for its domestic usages via public bidding. That means they are in mood to discourage import of these metals and hence in next one week to a fortnight, we can witness selloff pressure in the metal segment. But, it would be more an opportunity than to get panic." Singhal said that Vedanta, Hindalco Industries and Hindustan Copper are quality stock with strong fundamentals. He advised investors to buy at the lower levels.
On what could be the buying strategy in Hindalco Industries shares Ravi Singhal said, "One can buy Hindalco Industries stocks at around ₹350 to ₹360 maintaining the stop loss at ₹330. In next three to four months, it may go up to ₹444 levels."
Sharing major levels in Vedanta share price Ravi Singhal said, "One can buy Vedanta shares in ₹240 to ₹250 range for the target of ₹330 in next three to four month. However, one must maintain stop loss at ₹209."
Unveiling investment strategy in Hindustan Copper stocks Sumeet Bagadia, Executive Director at Choice Broking said, "One can buy Hindustan Copper stocks at ₹150 to ₹155 for the target of ₹170 to ₹180 in next 15 days of the position. But, the investor is advised to maintain stop loss at ₹135."
As per the Reuters report, copper prices fell to their lowest in nearly two months on Wednesday, weighed down by supply pressure after top consumer China announced a plan to sell its national reserves of the metal to stabilise prices.
Three-month copper on the London Metal Exchange dropped by as much as 0.8 per cent to $9,489 a tonne, its lowest since April 23.
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