Hindustan Zinc looks good to buy now. Company also posted profit of 27% profit in Q3. Sitting with cash in its books and also company is having the ability to have higher production of Lead and Silver.
Hindustan Zinc was correcting for almost 2 months. Yesterday it formed a Long legged doji with low at 113.90 which shows high interest in the stock at previous lows of 114 levels. The day continued today with almost 3% up move. Technically stock found support at these levels.Stock has been in a channel for almost two and half year with higher end at 154 levels and lower end at 105 to 114.
From the moment stock had for last two days, stock may see shorter term up move to the levels of 123/127 to 130.Go long on the stock with SL at 113 for shorter term.
Stock has been into a wide range of channel with 154 at higher end and 105 at lower end for almost 2 and half years. Company posted strong earnings and sales in Q3. Company also have plans to reduce the production costs and increasing the production of Lead and Silver for the Financial years 2013 - 15. Company is sitting with cash in their balance sheets.
Technically stock is at the bottom of the channel and now took reversal signal with a long legged Doji from 103.9 levels and retraced to 17 points from low in 2 trading sessions which is almost 16% from low of the move. Stock is moving strong from these levels. Buy the stock for target of 153/155 in coming 3 months.If this channel break out this time we may see more higher levels.