Unlock Potential Profits: Buy Hindustan Zinc and Vedanta This Thursday for Up to 9% Gains!

The domestic stock markets experienced a robust rally on Wednesday, buoyed primarily by a decline in oil prices, which dipped below the $100 per barrel mark. Additionally, optimism surrounding a potential trade agreement between the United States and India further fueled positive sentiment among investors. Despite this uplift, the Nifty index has remained below its 50 Exponential Moving Average (EMA) for eight consecutive sessions, indicating a sustained bearish trend. Rupak De, Senior Technical Analyst at LKP Securities, noted that the Relative Strength Index (RSI) for Nifty is currently showing a bearish crossover, suggesting weak momentum. However, a deeper analysis reveals the emergence of higher lows on the Nifty chart, hinting at a possible reversal and a short-term upside potential towards the 24,285–24,350 range.

In line with these market observations, two stocks have been identified as favorable buy opportunities. Hindustan Zinc Limited (HZL) is currently priced between Rs 638 and 642, with an anticipated upside of 9% and a stop loss set at Rs 610. The stock is demonstrating signs of recovery and appears poised for a breakout after a period of consolidation, further supported by an RSI reading above 60, indicating strengthening momentum. If HZL trades above Rs 638, it could navigate towards a target range of Rs 700–720. Conversely, immediate support lies around Rs 600, and failure to maintain this level may lead to a range-bound movement.

Another stock poised for potential gains is Vedanta Limited, trading currently at Rs 315-316, with a target upside of 4% and a stop-loss set at Rs 308. Vedanta is trending strongly upward, characterized by the formation of higher highs and lows while trading above key EMAs. The stock is nearing the upper boundary of a rising channel around Rs 320, which may present short-term resistance. The RSI, hovering between 65 and 70, supports positive momentum while also signaling a chance for near-term consolidation. As long as Vedanta maintains its position above Rs 300, the overall trend remains bullish, advocating for a buy-on-dips strategy for investors.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)