HINDZINC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.2

📊 Chart Patterns: Hindustan Zinc is trading near its 52-week high (594 ₹) with current price at 589 ₹. The stock has shown strong upward momentum, supported by higher highs and higher lows. Key support lies at 570–575 ₹, with resistance at 594–600 ₹.

📈 Moving Averages: Price is well above both 50 DMA (499 ₹) and 200 DMA (470 ₹), confirming a strong bullish trend.

📉 RSI: At 81.0, RSI is in overbought territory, suggesting caution as the stock may face short-term pullback.

📈 MACD: Positive at 25.3, indicating strong bullish momentum and trend continuation.

📊 Bollinger Bands: Price is near the upper band, showing strong buying pressure but also risk of short-term correction.

📉 Volume Trends: Current volume (1,61,98,057) is slightly below average weekly volume (1,76,38,374), suggesting reduced participation despite strong price action.

📌 Short-term Momentum Signals: Bullish momentum intact, but RSI indicates overbought conditions. A breakout above 594 ₹ could push toward 605–615 ₹. Support at 570–575 ₹ provides a cushion for entry.

🎯 Optimal Entry Zone: 570–575 ₹ (near support).

🎯 Optimal Exit Zone: 600–610 ₹ (near resistance).

📈 Trend Status: The stock is trending upward strongly, but short-term consolidation or pullback is possible due to overbought RSI.

Positive

• Exceptional ROCE (60.7%) and ROE (72.4%) reflect outstanding operational efficiency.
• Dividend yield of 4.84% provides strong shareholder returns.
• Quarterly PAT growth (2,632 Cr. vs 2,204 Cr.), up 11.6%, highlights earnings strength.
• EPS of 24.8 ₹ supports valuation strength.

Limitation

• High PEG ratio (9.30) suggests limited growth relative to valuation.
• Debt-to-equity ratio of 0.82 indicates moderate leverage.
• RSI in overbought zone (81.0) signals risk of short-term correction.

Company Negative News

• FII holding decreased slightly (-0.04%), showing marginal reduction in foreign investor confidence.

Company Positive News

• DII holding increased by 0.11%, reflecting domestic institutional support.
• Quarterly PAT growth highlights operational resilience.

Industry

• Industry PE at 37.6 is higher than Hindustan Zinc’s PE (23.8), suggesting relative undervaluation.
• Metals and mining sector outlook remains strong, supported by global demand recovery and infrastructure growth.

Conclusion

⚖️ Hindustan Zinc is technically strong, trading near its 52-week high with bullish signals from MACD and moving averages. Fundamentals show robust ROCE/ROE and attractive dividend yield. Entry is favorable near 570–575 ₹ with exit around 600–610 ₹. The stock is in a clear uptrend, but caution is advised as RSI indicates overbought conditions and potential short-term consolidation.