HINDZINC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.9

📈 Hindustan Zinc (HINDZINC) is mildly trending upward with neutral momentum and strong long-term fundamentals.

📊 Technical Analysis

• Trend Status: Trending — price is above both 50-DMA and 200-DMA, indicating bullish bias.
• Moving Averages: Price ₹481 is above 50-DMA (₹471) and 200-DMA (₹459), showing positive trend continuation.
• RSI (47.8): Neutral zone, suggesting balanced momentum with potential for upward movement.
• MACD (2.78): Positive crossover, indicating early bullish momentum.
• Bollinger Bands: Price near mid-band, suggesting consolidation with breakout potential.
• Volume: Current volume (19.8L) is significantly below weekly average (40.8L), indicating weak participation.

🎯 Entry & Exit Zones

• Support Levels: ₹471 (50-DMA), ₹459 (200-DMA)
• Resistance Levels: ₹495, ₹510, ₹530
• Optimal Entry: ₹470–₹475 (near support)
• Exit Target: ₹510–₹530 (resistance zone)

✅ Positive

• Outstanding ROCE (60.7%) and ROE (72.4%) reflect exceptional capital efficiency.
• High dividend yield (6.10%) enhances investor appeal.
• Quarterly PAT increased to ₹2,632 Cr from ₹2,204 Cr, showing earnings growth.

⚠️ Limitation

• PEG ratio of 7.59 suggests overvaluation relative to growth.
• Volume significantly below average, indicating lack of strong buying interest.
• Debt-to-equity ratio of 0.82 is relatively high for a dividend-paying company.

📉 Company Negative News

• FII holdings slightly declined by 0.04%, indicating marginal foreign investor caution.
• Stock still 15% below 52-week high of ₹565, reflecting recovery phase.

📈 Company Positive News

• DII holdings increased by 0.11%, showing domestic institutional confidence.
• Consistent profitability and strong dividend payout history.

🏭 Industry

• Metals and mining sector remains strong with global demand for zinc and base metals.
• Industry P/E (31.8) is higher than HINDZINC’s (19.4), indicating relative undervaluation.

🧾 Conclusion

• HINDZINC is technically trending with moderate momentum and strong fundamentals.
• Entry near ₹470–₹475 could be considered with targets around ₹510–₹530.
• Investors should monitor volume trends and debt levels for sustained upside.