Shares of Vedanta rose 78% in the last three months, leaving investors guessing how strong is the uptrend. The stock, which closed around Rs 252 mark on March 13, hit an intraday high of Rs 451.70 in the current session today. Vedanta stock hit its record high of Rs 506.85 on May 22, 2024 and fell to a 52 week low of Rs 207.85 on September 28, 2023.
The stock rose nearly 3% to Rs 451.70 on BSE today. Market cap of the metal and mining firm stood at Rs 1.67 lakh crore.
In the last one year, the Vedanta stock has gained nearly 60%. The stock delivered healthy returns of 165% in five years.
A total of 7.76 lakh shares of the firm changed hands amounting to a turnover of Rs 34.78 crore on BSE. Vedanta shares have a one-year beta of 1, indicating average volatility during the period.
In terms of technicals, the relative strength index (RSI) of Vedanta stands at 67.6, signaling the stock is trading neither in the oversold not in the overbought territory. Vedanta shares are trading higher than the 5 day, 10 day, 20 day 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Here's a look at what analysts said on outlook of the Vedanta stock.
Investec has upgraded Vedanta to hold and also raised the target price to Rs 473 from Rs 270.
The brokerage also raised its FY25 EBITDA estimate by 8% and by 7% for FY26.
Jigar S Patel from Anand Rathi said , “Support will be at Rs 438 and resistance at Rs 452 A decisive close above the Rs 452 level may trigger a further upside to 470 . The expected trading range will be between Rs 435 and Rs 485 for a month.”
Kushal Gandhi, Technical Analyst, StoxBox said, “Vedanta's price action succumbed to profit-taking bouts after surging by 103% in 45 trading sessions. It retraced 27% before it witnessed a sharp technical pullback from the support of 50 daily MA. The stock currently is bolstered by shorter-term EMA offering immediate support and a low-risk to higher rewarding opportunity to initiate fresh long entry. The stock displays a high relative strength compared to the 50 index, with strong buyers’ demand and sectorial strength, which is a positive sign. We recommend buying Vedanta for the target of Rs 508 with a protective stop at Rs 421.”
Riyank Arora Technical Analyst at Mehta Equities said, “The stock is witnessing a good consolidation below its important resistance level of Rs 475 and is trading below this level. With the stock trading below this level for quite some time and consolidating well, it is expected that the price should remain sideways, between the Rs 435- 460 zone, for the time being. Any move above Rs 460 should open the upside potential up to Rs 475, while a drift below Rs 435 can push the downside move towards the Rs 415 level.”
Vedanta Ltd is a subsidiary of Vedanta Resources Ltd and has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.