In the midst of a broader market rally, stock-specific action has become increasingly prominent. Two stocks that have recently caught investor attention are Hindustan Zinc and Jio Financial Services. Both are exhibiting strong momentum due to multiple fundamental and technical triggers. Here's a deep dive into the reasons behind their recent moves and what lies ahead.

Hindustan Zinc has emerged as a strong performer in the metal space. The stock is currently witnessing significant upside, driven by a mix of global macro factors, supply-side constraints, and improving demand indicators.

One of the key reasons behind this rally is the sharp rise in global zinc prices. Since the lows of April, zinc prices have surged nearly 10%, reaching a three-month high. This price rise is expected to positively impact Hindustan Zinc's margins and overall profitability. Another crucial factor is the falling zinc inventories at the London Metal Exchange (LME). Reports suggest a 20% month-on-month decline in inventory levels, indicating tight supply. This inventory crunch is giving further upward momentum to zinc prices.

Geopolitical tensions in the Middle East are also affecting global metal supplies. Any disruption in the supply chain from this region provides additional support to zinc prices. On the demand side, the Chinese economy is showing early signs of recovery. As one of the largest consumers of zinc, any rebound in Chinese demand could lead to further price appreciation.

Moreover, raw material costs for producing zinc have remained stable or even declined. Inputs like caustic soda, thermocol, and crude derivatives are either stable or trending lower, which supports margin expansion for producers like Hindustan Zinc.

Brokerages are also bullish on the stock. Antique Broking has issued a target price of ₹489, implying an 8% upside from current levels. JM Financial has projected a target of ₹550, suggesting a 22% potential gain, while Phillip Securities has set a target of ₹526, indicating a 16% upside.

From a technical standpoint, Hindustan Zinc has experienced notable volatility in June. The stock started the month with a strong breakout, but it has since retested key levels. A significant resistance exists in the ₹465–475 zone, which has been tested multiple times. A decisive breakout above ₹475 could open the door to short- to medium-term targets of ₹520 to ₹530. Technical experts suggest buying the stock only after it sustains above ₹475 for better conviction.

Jio Financial Services is another stock that has recently been in the limelight. It has been consistently rising for the last three sessions and has now delivered a significant breakout. The stock is currently trading as the top gainer on the Nifty, up nearly 4% today alone.

Despite this strong momentum, analysts caution that there is a bearish gap zone between ₹323–324, which could act as a temporary resistance. This might lead to a short-term pause or cooling off in the price movement. However, the overall trend remains positive. Traders and investors are advised to hold on to existing positions.

 For those looking to enter fresh positions, it would be prudent to wait for a pullback towards the ₹310–₹312 zone, which is considered a strong support area for accumulation. Looking ahead, analysts believe the stock could potentially reach ₹355 to ₹360 in the coming weeks.

Both Hindustan Zinc and Jio Financial Services are showing strong technical and fundamental signals. While Hindustan Zinc is benefiting from favorable global commodity trends and supply disruptions, Jio Financial Services is gaining strength from breakout momentum and investor interest. Monitoring key levels and macro cues will be essential, but both stocks currently offer promising opportunities for traders and investors in the short to medium term.

Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Stock markets are subject to risks, and past performance is not indicative of future returns. Please consult your financial advisor before making any investment decisions.