HINDZINC

Fundamental View- Hindustan Zinc Ltd. (HZL) is India’s largest integrated producer of zinc, lead, and silver, operating primarily out of Rajasthan and Maharashtra under Vedanta. Technical View- As observed on the weekly chart, the stock has shown a decent recovery from lower levels last week, although in the short term, it still appears to be in a downtrend. Technical indicators like MACD, RSI, and Parabolic SAR are also signaling short-term weakness. On the daily chart, the stock seems to have entered a correction phase. On 20th June, it made a low of ₹435.40, and on 23rd June, a similar low of ₹435.70 was observed, followed by a continuous recovery in the stock. On 27th June, the stock opened with a gap-up at ₹452.90, made a low of ₹449, a high of ₹454.70, and closed at ₹451.15. Earlier, on 8th June, the stock had made a high of ₹546.80, after which it experienced a consistent decline. During this period, the stock has been trading around its 14-day and 55-day EMAs on the daily chart, which is acting as a strong support zone. Currently, the stock is seen touching both its 14-day and 55-day EMAs, which are around the ₹457 level. On the weekly chart, the stock is also taking strong support near its 200-day EMA, and continuous buying has been observed this week. The stock is now approaching its 14-day EMA on the weekly chart, and in my view, if it manages to sustain above its 14-day and 55-day EMAs in the coming week, it is likely to break the previous week's high. I believe that entering this stock around ₹450-₹451 could be a good opportunity for portfolio addition. The stock is expected to hold strong support near ₹435 on the downside, and on the upside, it may potentially test levels of ₹550-₹551 in the near term. Warning- ***** ***** *****