The stock of Hindustan Zinc is showing strong signs of a trend reversal. The 1.5 per cent rally on Tuesday has taken the stock well above the key resistance level of ₹305. This indicates the reversal of the downtrend that has been in place since October last year. Cluster of supports are poised in the ₹305-₹295 region. Any intermediate dips can find fresh buyers coming into the market. As such a fall below ₹295 looks unlikely.

Hindustan Zinc can rally to ₹350-₹360 over the next three-four weeks. Traders can go long now and accumulate at ₹307. Keep the stop-loss at ₹292. Trail the stop-loss up to ₹321 as soon as the stock moves up to ₹335. Move the stop-loss further up to ₹334 when the Hindustan Zinc touches ₹339.  Book profits at ₹345.

(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)

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