Hindustan Zinc Ltd Technical Momentum Shifts to Bullish Amid Market Volatility

Price Action and Market Context

On 3 Feb 2026, Hindustan Zinc Ltd (stock code 855995) closed at ₹609.55, up from the previous close of ₹568.95. The stock traded within a range of ₹561.00 to ₹614.30 during the day, demonstrating strong intraday buying pressure. Despite this surge, the current price remains below its 52-week high of ₹732.60 but comfortably above the 52-week low of ₹378.65, indicating a solid recovery trajectory over the past year.

Comparatively, Hindustan Zinc has outperformed the broader Sensex index over multiple time horizons. The stock delivered a 36.7% return over the past year, significantly higher than the Sensex’s 5.4% gain. Over five years, the stock’s return of 108.6% dwarfs the Sensex’s 64.0%, while the 10-year return of 291.5% also comfortably exceeds the benchmark’s 232.8%. These figures underscore the company’s strong long-term performance within the non-ferrous metals sector.

Technical Indicators Signal Bullish Momentum

The technical landscape for Hindustan Zinc has shifted positively, with several key indicators confirming an improved outlook. The Moving Average Convergence Divergence (MACD) remains bullish on both weekly and monthly charts, signalling sustained upward momentum. The daily moving averages also support this trend, with the stock price trading above key averages, reinforcing the bullish sentiment.

Relative Strength Index (RSI) readings on weekly and monthly timeframes currently show no definitive signal, suggesting the stock is not yet overbought or oversold, leaving room for further upside. Bollinger Bands on weekly and monthly charts are mildly bullish, indicating moderate volatility with a positive bias.

The Know Sure Thing (KST) indicator presents a mixed picture: bullish on the weekly timeframe but mildly bearish monthly, suggesting some caution in the longer term. Similarly, Dow Theory assessments are mildly bearish weekly but mildly bullish monthly, reflecting a nuanced market interpretation that investors should monitor closely.

On-Balance Volume (OBV) is bullish on the weekly chart, indicating that volume trends support the price rise, although the monthly OBV shows no clear trend, signalling that longer-term volume confirmation is still developing.

Mojo Score and Rating Revision

MarketsMOJO has recently revised Hindustan Zinc’s Mojo Grade from Buy to Hold as of 1 Feb 2026, reflecting a more cautious stance despite the bullish technical signals. The current Mojo Score stands at 64.0, indicating moderate confidence in the stock’s near-term prospects. The Market Cap Grade remains at 1, denoting a large-cap status with strong market capitalisation.

This downgrade from Buy to Hold suggests that while the stock shows promising momentum, investors should weigh potential risks, including sector volatility and broader market conditions, before committing additional capital.

Sector and Industry Positioning

Hindustan Zinc operates within the non-ferrous metals industry, a sector known for cyclical swings influenced by global commodity prices and demand-supply dynamics. The recent bullish technical signals may be supported by improving fundamentals in the metals market, including rising zinc prices and increased industrial demand.

However, investors should remain vigilant as the sector can be sensitive to macroeconomic factors such as currency fluctuations, trade policies, and geopolitical tensions that could impact raw material costs and export competitiveness.

Short-Term and Long-Term Outlook

In the short term, the bullish daily moving averages and weekly MACD suggest that Hindustan Zinc could continue its upward trajectory, potentially testing resistance levels near its 52-week high. The absence of RSI extremes supports the possibility of further gains without immediate risk of a sharp correction.

Longer-term indicators such as the monthly KST and Dow Theory signals advise some prudence, indicating that while the medium-term trend is positive, investors should monitor for signs of momentum weakening or sector headwinds.

Volume trends, as indicated by the weekly OBV, reinforce the current price strength, but the lack of monthly volume confirmation suggests that sustained institutional buying is yet to fully materialise.

Investor Considerations

Investors looking to capitalise on Hindustan Zinc’s recent momentum should consider the stock’s valuation relative to its historical price range and sector peers. The current price of ₹609.55 represents a premium to the 52-week low but remains below the peak of ₹732.60, offering a potential entry point for those anticipating further upside.

Given the mixed signals from monthly technical indicators and the recent Mojo Grade downgrade, a balanced approach is advisable. Investors may prefer to monitor volume trends and sector developments closely before increasing exposure.

Additionally, the company’s strong long-term returns relative to the Sensex highlight its potential as a core holding for investors with a medium to long-term horizon, particularly those seeking exposure to the non-ferrous metals sector’s cyclical recovery.

Summary

Hindustan Zinc Ltd’s technical parameters have shifted favourably, with key indicators such as MACD and moving averages signalling a bullish momentum shift. The stock’s strong intraday performance and outperformance against the Sensex over multiple periods reinforce its appeal. However, mixed monthly signals and a recent Mojo Grade downgrade to Hold suggest that investors should exercise caution and consider broader market conditions before making significant commitments.

Overall, Hindustan Zinc remains a compelling candidate for investors seeking exposure to the non-ferrous metals sector, supported by solid fundamentals and improving technical trends.

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