Hindustan Zinc shares hit fresh 52-week high, should you buy the Vedanta arm's stock?

Shares of Hindustan Zinc Ltd hit a fresh 52 week high today, led by a sharp surge in silver prices. Silver futures reached their lifetime high of Rs 2,06,111 per kg on MCX in the current prices. Silver futures for the March expiry touched fresh record highs, crossing the Rs 2 lakh per kg mark for the first time.

Hindustan Zinc is India's largest silver manufacturer and stands to benefit from the strong rally in the metal. The subsidiary of Vedanta is known for processing refined silver with a minimum 99.9 per cent purity.

Hindustan Zinc stock rose 3.5% to Rs 587.65 today against the previous close of Rs 567.75. Market cap of the firm reached Rs 2.43 lakh crore. The company is the subsidiary of metal and mining major Vedanta, which has around 65% stake in the firm. 

Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio said, "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. The broader structure remains positive with higher lows forming above the 50 and 100 EMAs, which are now acting as dynamic support. Any dip toward the Rs 555–540 zone should be viewed as a buying opportunity, as this area aligns with the breakout retest and moving average support. As long as the stock holds above Rs 535, the uptrend remains intact and can extend toward Rs 610–630 in the coming weeks. The trend favours a buy-on-dips strategy rather than chasing at higher levels."

Jigar S Patel from Anand Rathi said, "Support will be at Rs 555 and resistance at Rs 595. A decisive move above the Rs 595 level may trigger a further upside of Rs 610. The expected trading range will be between Rs 555 and Rs 610 for the short-term."

Amruta Shinde, Research Analyst at Choice Broking said, "Hindustan Zinc has witnessed a sharp 22% rally over the last seven trading sessions, signalling strong bullish momentum following a prolonged consolidation phase. The stock has decisively broken above its earlier resistance zone of Rs 525–530, supported by strong volumes, which indicates aggressive buying interest and confirms the strength of the breakout. The RSI is currently at 79.63, indicating an  overbought condition; however, in strong trending markets, such elevated RSI readings often reflect sustained strength rather than an immediate reversal. Volume has expanded significantly during the breakout, further validating the price action. The earlier resistance zone of Rs 555–572 is now expected to act as immediate support on any corrective dips. On the upside, Rs 600 represents a major psychological as well as technical resistance level, where some profit booking may emerge. A sustained move above Rs 600 could open the path toward Rs 630 and higher levels." 

A R Ramachandran, part time SEBI registered Research Analyst, Tips2trades said, "Hindustan Zinc stock price is bullish and also overbought on daily charts with next resistance at Rs 600. Investors should book profits at current levels as a daily close below the support of Rs 577 could lead to a target of Rs 495 in the near term."