Due to a strong increase in silver prices, shares of Hindustan Zinc Ltd. reached a new 52-week high today. The current prices of silver futures on the MCX hit a record high of Rs 2,06,111 per kg. For the March expiry, silver futures reached all-time highs, surpassing Rs 2 lakh per kg for the first time.
Hindustan Zinc at 52-Week High: Should You Buy Vedanta’s Mining Arm?
The biggest producer of silver in India, Hindustan Zinc, will profit from the metal’s robust surge. The Vedanta subsidiary is renowned for producing refined silver that is at least 99.9% pure.
Hindustan Zinc’s stock closed at Rs 567.75 today, up 3.5% to Rs 587.65. The company’s market capitalization was Rs 2.43 lakh crore. The company is a subsidiary of the mining and metal giant Vedanta, which owns about 65% of the business.
“Hindustan Zinc has confirmed a bullish breakout above the Rs 560–565 resistance zone on the weekly chart, supported by strong volumes indicating improving momentum,” stated Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio. Higher lows are emerging above the 50 and 100 EMAs, which are currently serving as dynamic support, and the overall structure is still favorable. Since this region coincides with the breakthrough retest and moving average support, any decline toward the Rs 555–540 zone should be seen as a buying opportunity. The upswing continues as long as the price stays above Rs 535 and may continue in the upcoming weeks to reach Rs 610–630. Instead of chasing at higher levels, the pattern favors a buy-on-dips strategy.
“Support will be at Rs 555 and resistance at Rs 595,” stated Jigar S. Patel of Anand Rathi. A decisive move above the Rs 595 level may trigger a further upside of Rs 610. The short-term trading range is anticipated to be between Rs 555 and Rs 610.
“Hindustan Zinc has seen a sharp 22% rally over the last seven trading sessions, signalling strong bullish momentum following a prolonged consolidation phase,” stated Amruta Shinde, Research Analyst at Choice Broking. Strong volumes have helped the stock break firmly above its previous resistance range of Rs 525–530, indicating aggressive buying interest and confirming the strength of the breakout.
