Stocks

Hindustan Zinc (₹206.7): Buy

Yoganand D BL Research Bureau | Updated on July 27, 2020

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Investors with a short-term view can buy the stock of Hindustan Zinc at current levels. The stock found support at around ₹125 in late March this year, following a medium term downtrend. Triggered by positive divergence on the daily relative strength index and price rate of change indicator, the stock changed direction in March. Since then, the stock has been in a medium-term uptrend. But, the key resistance at ₹200 had limited the stock's rally in late June. After a corrective decline the stock had continued to trend upwards in the past week. On Monday, the stock gained 3 per cent with above average volume, decisively moving above the key barrier of ₹200. The daily RSI features in the bullish zone and the weekly RSI has just entered the bullish zone from the neutral region. Both the daily as well as the weekly price rate of change indicators are featuring in the positive territory indicating buying interest. There has been an increase in daily volume over the past four trading sessions. The short-term outlook is bullish for the stock. It can continue to trend northwards and reach the price targets of 215 and ₹220 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹202. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on July 28, 2020

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