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Investors with a short-term horizon can buy the stock of Hindustan Zinc at current levels. The stock has been in a short-term uptrend since it took support at ₹125 in late March this year. While trending up, the stock had breached its 21-day moving average and a key resistance at ₹160 in early April. It continued to trend upwards but a key resistance at ₹174 had limited the rise.
On Thursday, the stock jumped 4 per cent with good volume and closed above this key resistance level strengthening the uptrend. The stock trades well above its 21- and 50-day moving averages. There has been an increase in daily volume over the past five trading sessions. The daily relative strength index is likely to enter the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region. Moreover, the daily price rate of change indicator has entered the positive territory implying buying interest.
Overall, the short-term outlook is bullish for the stock. It has potential to trend upwards and reach the price targets of ₹183.5 and ₹187 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹172.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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