Buy Hindustan Zinc above Rs 1240: IIFL

MUMBAI: IIFL is of the view that Hindustan Zinc is forming an ascending triangle of smaller amplitude. It has advised traders to buy the stock once it moves above Rs 1240 levels.

“After signaling breakout on medium term chart, Hindustan Zinc is forming an ascending triangle of smaller amplitude. It is observed such triangle act as a continuation pattern in broader uptrend, which also brings to an end to the consolidation.

As of now breakout is yet to take place in the triangle and hence one needs to wait for move above Rs 1240 in order to corroborate upward breakout. Volume trend during the price decline remained on contraction mode which suggest lesser participation in stock and indicate bullish bias.

Along with same RSI has been holding well above its 9-EMA which maintains is short-term uptrend. We advocate buying stock above Rs 1240 with stop-loss of Rs 1220 for target of Rs 1280,” the report said.

Note: Trading idea valid for time-period of 1-3 days.