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We recommend a sell on the Hindustan Zinc stock from a short-term perspective. It is clearly evident from the charts of Hindustan Zinc that after encountering resistance at around Rs 440 in early January 2009, it was on a medium-term downtrend till late February low of Rs 303. However, the stock found support at around Rs 300 level. Since then, the stock has been on a medium-term uptrend. From the February low, the stock gained 46 per cent in a short span of one month and met with resistance at Rs 440 on March 24.The stock has since declined by 2.5 per cent, forming a bearish engulfing candlestick pattern, accompanied by high volume. Moreover, the daily relative strength index (RSI) has begun to decline after reaching overbought levels. Taking into consideration the fact that the stock has formed a bearish engulfing candlestick pattern at the resistance level, we are bearish about it from a short-term perspective. We expect the stock to drop further until it hits our price target of Rs 380 in the upcoming sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 442.

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