The stock of Hindustan Zinc surged 3.4 per cent with a four-fold spike in volumes on Monday. This rally has emphatically breached the stock’s immediate key resistance at ₹125 as well as its 50- and 200-day moving averages. Investors with a short-term perspective can take this opportunity to buy the stock at current levels. Following a short-term downtrend, the stock took support at ₹115 in early March and has been on a nascent upmove.
The stock’s intermediate-term uptrend continues to be in place as long as it trades above the key support at ₹115. The relative strength index on the daily chart has entered the bullish zone from the neutral region. Both the daily and weekly price rate of change indicators are hovering in the positive territory implying buying interest. The short-term outlook for the stock is bullish. It can extend its current rally and reach the price target of ₹135 and then ₹140 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹125.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)