Market Strategy

Sizzling Stocks: Hindustan Copper (Rs 324.4)

Yoganand D. | Updated on February 19, 2011

Mr Vijay Mallya   -  PTI

Hindustan Copper did a volte-face last week and skyrocketed 37 per cent for the week. It breached its medium-term key resistance as well as 50-day moving average around Rs 300 on Friday, by gaining more than 11 per cent with extra-ordinary volumes. The stock now faces its next important resistance at Rs 350. Inability to surpass this resistance will result in the stock moving sideways in the range between Rs 350 and Rs 300 before it trends upward.

Strong weekly close above Rs 350 will push the stock higher to its long-term resistance level of Rs 400 in the upcoming months. Key supports are pegged at Rs 300 and Rs 250.

United Spirits (Rs 1,190.9)

The stock bounced up 19 per cent taking support from a psychological support level of Rs 1,000 last week. Nevertheless, it encountered a long-term significant resistance at Rs 1,200 and is currently testing it. Strong close above this level would lift the stock higher to Rs 1,300 and then to Rs 1,400. Reversal from the current resistance will drag the stock down to Rs 1,100 or even to Rs 1,000 in the weeks ahead.

Medium-term trend is down for the stock since its October 2010 peak of Rs 1,683.

Decisive weekly close above Rs 1,400 will mitigate this downtrend and push the stock higher to its Rs 1,500 resistance level.

Published on February 19, 2011

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