Buy Bombay Dyeing and Hindustan Zinc: HDFC Securities - Technicals

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Bombay Dyeing
Current Observation:
 The attached daily timeframe chart of Bombay Dyeing is indicating a larger consolidation pattern in the last few
weeks and the stock price is currently making attempt to move above the consolidation area.
 The overhead resistance of around Rs.72.25 levels (brown down sloping resistance line) has been broken on the
upside and the stock price has closed above it today. This is an indication of up thrust of bulls to move up further
highs.
 The volume expanded today (not shown on the chart), after falling volumes during consolidation pattern, which is
indicating aggressive participation of bulls.
 Daily momentum oscillator like 13 period MACD has turned up from its signal line near the equilibrium area (zero
line), which is displaying the strength of upside momentum is increasing.
 Positive chart pattern and upside momentum is suggesting for a long trade set up in Bombay Dyeing for near term.


Hindustan Zinc
Current Observation:
 The Hindustan Zinc Ltd was moving in a consolidation in the last many sessions and the stock price is now gaining
upside momentum to move above the pattern.
 We observe a formation of triangle type pattern (brown converging trend lines) and the stock price is currently
making attempt to move above the upper triangle pattern around Rs.171 levels. Upside breakout from here could
result in sharp upside rally in the stock price.
 The daily momentum oscillator like 14 period RSI has been moving within a neutral range of 60-40 levels in the last
many weeks. If daily RSI moves above upper region of 60 levels, then it has a possibility of reaching up to the higher
75 levels (from the current reading of 59 levels).
 Such expected behavior of daily RSI could have a positive impact on the stock price for near term.
 One may look to go for a fresh buy in Hind Zinc on the upside breakout of the pattern.