Hindustan Zinc: A Strong Rebound with Bullish Momentum

2. Nov.

This is a stock that’s come a long way since its high of 800 in May 2024. No surprises there—it was trading at a premium level. But you knew that wasn’t sustainable long term. Then came the pullback. A solid one, mind you. By mid-September, it dropped to a low of 475. For most, that would look like an exit signal. For those who know the game, that’s just the market taking a breath. And if you looked closely, it was hitting the 200-day EMA at that low, signalling a bounce from a level where institutional money typically starts to take interest again.

Here’s where things get interesting. Hindustan Zinc didn’t just find support at the 200-day EMA; it also broke out of a downtrend. That’s not a fluke. When a stock breaks out of a downtrend and stays above its moving averages, it’s a signal. A signal that it’s time to pay attention. Right now, it’s trading at 558, which is above both the 30 EMA and 200 EMA—strong territory.

Trading above the 30 EMA and the 200 EMA isn’t just a technicality; it’s a show of resilience. A stock doesn’t sustain above those levels unless there’s momentum, and right now, that’s exactly what Hindustan Zinc has. It’s saying, “I’m here to stay.” The 30 EMA is typically a short-term trend indicator, while the 200 EMA speaks to long-term stability. Being above both is a rare occurrence—it means the bulls are in control, and the market is backing it.

Bottom line? Hindustan Zinc is positioned with support and breakout potential. This is a tactical buy for those who recognise a solid foundation in both trendline and moving averages. Keep it on your watchlist because, in a game of tactical plays, this one’s delivering on every front.