Stocks in Focus– Vedanta, Hindustan Zinc shares – what opportunities are there for investors? Expert DECODES movement, price targets

Stocks in News – Vedanta Limited – While the prices of Vedanta Limited shares dropped over 2.5 per cent on Wednesday - a second consecutive fall - NSE has sought clarification from Vedanta with respect to recent news which reported that Vedanta share price tanked 12% as Madras High Court issued notice for Tuticorin unit. “The response from the Company is awaited,” the NSE website says.

There was another development regarding the dividend of Hindustan Zinc Limited (HZL), which is a Vedanta Group company. On 17 August (Tuesday), the company deferred its board meeting which was to consider interim dividend for FY22.

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The company later came out with a clarification on this issue. "Further to our stock exchange announcement yesterday, we would like to inform you that the board meeting was deferred. We would like to reiterate that the dividend is a matter for the board's consideration. Also, there is no change to our dividend policy and we will adhere to it," HZL said in a statement and PTI reported.

Zee Business Managing Editor Anil Singhvi, in one of his shows, had said that the fall in prices of Vedanta Limited coincided with the emergence of the two news. He, however stated that it could not be ascertained if the two developments or either of the two developments were responsible for the price correction. He had also advised the investors to not worry about this market correction. For traders, he said that strict stop loss should be followed.

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Hindustan Zinc is a leading zinc-lead miner. The company is subsidiary of Vedanta Ltd which owns 64.92 per cent stake in the company as on June 2021. Meanwhile, public holding is around 35.08 per cent.

Stocks in News – Vedanta Limited share – Analyst Nilesh Jain, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking, said that the long-term outlook on this stock remains positive. The Vedanta shares ended at Rs 295.50 on the NSE on Wednesday. They were down by 2.5 per cent or almost Rs 7.6 from the last closing price of Wednesday. He said that the long-term investors must hold on to this stock with a stop loss of Rs 280.

He said that there could be some correction, going forward, but the structures look strong on the charts. The 52-week high for this stock is Rs 341.45 which it achieved on 16 August (Monday).    

Stocks in News – Hindustan Zinc share – This stock ended at Rs 322.05 on the NSE on Wednesday, up by almost 1.4 per cent. Jain said that HZL shares were showing sideways consolidation. Stock has a strong support at Rs 305. He expects a target price of Rs 350 over the next 8-10 days.

He said that existing investors should hold on to this stock as it may go up to levels around Rs 400 over the next 6-8 months. It has been a laggard among its metal and mining peers and may now come to the part, the technical analyst added. The 52-week high for this share is Rs 362.10.