Hindustan Zinc Ltd Declines 3.44% Despite Sector Gains: 5 Key Factors Driving the Week

Monday, 5 January 2026: Cautious Start Amid Market Weakness

Hindustan Zinc Ltd opened the week at Rs.628.35, marginally down 0.04% from the previous close, reflecting a cautious market mood. The Sensex also declined by 0.18%, closing at 37,730.95. Trading volume was moderate at 2,79,913 shares, indicating subdued investor activity as the market digested recent developments.

Tuesday, 6 January 2026: Intraday Surge and Robust Trading Activity

The stock demonstrated strong intraday momentum on 6 January, surging 2.32% to close at Rs.642.95, with an intraday high of Rs.649.20. This represented a 3.03% intraday gain, placing the stock near its 52-week high of Rs.656.25. Volume surged to 4,11,168 shares, with a traded value exceeding ₹321 crore, making Hindustan Zinc one of the most actively traded stocks by value that day.

This performance outpaced the Non-Ferrous Metals sector gain of 2.79% and contrasted with the Sensex’s 0.19% decline to 37,657.70. The stock traded above all key moving averages, signalling a strong technical uptrend. However, delivery volumes declined by 43.15%, suggesting increased short-term trading activity rather than long-term accumulation.

Technical indicators showed a shift to mildly bullish momentum, with the MACD remaining positive but mixed signals from RSI and KST advising caution. The Mojo Score was upgraded to 58.0 with a Hold rating, reflecting improved fundamentals and market positioning.

Wednesday, 7 January 2026: Profit Taking and Price Correction

On 7 January, Hindustan Zinc reversed some gains, closing at Rs.629.65, down 2.07% from the previous day. Volume moderated to 3,38,965 shares. The Sensex edged up slightly by 0.03% to 37,669.63, indicating a mixed market environment. The stock’s decline reflected short-term profit booking after Tuesday’s strong rally, with technical indicators signalling a mild pullback within an overall uptrend.

Thursday, 8 January 2026: Sharp Decline Amid Sector Weakness and Heavy Options Activity

Hindustan Zinc faced significant selling pressure on 8 January, plunging 6.23% to close at Rs.590.45, with an intraday low of Rs.608.60. This represented the steepest single-day drop of the week and underperformance relative to the Non-Ferrous Metals sector’s 2.87% decline and the Sensex’s 1.41% fall to 37,137.33.

Trading volume surged to over 10.5 lakh shares, with a traded value of approximately ₹235 crore, making it one of the highest value stocks that day. Delivery volumes increased by 20.24%, signalling heightened investor participation amid the sell-off. The stock traded below its 5-day moving average but remained above longer-term averages, suggesting a short-term correction within a sustained uptrend.

Options market activity was notable, with Hindustan Zinc emerging as the most active stock in both call and put options. Call options at the ₹660 strike price saw 4,253 contracts traded, reflecting bullish bets on a rebound. Conversely, put options dominated with 16,531 contracts traded across key strikes near ₹600, indicating significant hedging or bearish sentiment ahead of the 27 January expiry.

This divergence between derivatives optimism and equity weakness highlights market uncertainty and a cautious outlook among investors.

Friday, 9 January 2026: Rebound and Strong Trading Amid Sector Gains

Hindustan Zinc rebounded on 9 January, gaining 2.79% to close at Rs.606.95, with an intraday high of Rs.610.95. This recovery outpaced the Non-Ferrous Metals sector’s 2.88% gain and contrasted with the Sensex’s 0.89% decline to 36,807.62. Volume remained robust at 6,48,013 shares, with delivery volumes surging 180.4% to nearly 80 lakh shares, signalling strong institutional accumulation.

The stock traded above all major moving averages except the 5-day, indicating sustained medium- to long-term strength despite short-term consolidation. The Mojo Score remained at 65.0 with a Hold rating, reflecting a balanced view of the stock’s prospects amid volatility.

Daily Price Comparison: Hindustan Zinc Ltd vs Sensex (5-9 Jan 2026)

Key Takeaways

1. Volatility and Volume: The week was characterised by significant price swings, with a sharp midweek decline followed by a strong rebound. Trading volumes and delivery volumes surged, indicating active participation from both short-term traders and institutional investors.

2. Technical Signals Mixed: While the stock maintained its position above medium- and long-term moving averages, short-term indicators such as the 5-day moving average and weekly RSI suggested caution. The MACD remained bullish, but the mixed momentum indicators imply consolidation.

3. Options Market Divergence: Heavy call and put option activity at strike prices near and above current levels reflect a market divided between cautious optimism and hedging against downside risk ahead of the January expiry.

4. Sector and Market Context: Hindustan Zinc’s performance largely mirrored sector trends, outperforming the Sensex but underperforming the Non-Ferrous Metals sector on the down days. Sectoral headwinds and global commodity price concerns influenced price action.

5. Mojo Score and Rating: The upgrade to a Hold rating with a Mojo Score of 65.0 reflects improved fundamentals and a balanced risk-reward profile, supporting the view of a large-cap stock with solid medium- to long-term prospects amid short-term volatility.

Conclusion

Hindustan Zinc Ltd’s week was marked by pronounced volatility, with a 3.44% weekly decline that nonetheless outperformed the broader Sensex fall of 2.62%. The stock’s strong intraday moves, robust trading volumes, and mixed technical signals underscore a market in flux, balancing cautious investor sentiment with underlying sector strength. The surge in options activity highlights divergent views on near-term direction, while institutional delivery volumes suggest confidence in the company’s medium-term outlook.

Investors should monitor key technical levels, particularly the ₹600 support zone, and watch for confirmation of momentum shifts as the January expiry approaches. The Hold rating and improved Mojo Score reflect a stock at a critical juncture, offering potential opportunities amid ongoing market uncertainties in the non-ferrous metals sector.

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