Shares of Anil Agarwal-led Vedanta Ltd have surged 104% from their March low this year. The stock rose from Rs 225 level in March 2024 to Rs 459 in the current session. During the same period, the Vedanta stock hit its all-time high of Rs 506.85 on May 22, 2024. The stock has seen a correction of 10% since then.
In terms of price action, Vedanta shares stand higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
In the current session, the metal and mining stock closed 1% higher at Rs 459.35 on BSE. Market cap of the firm stood at Rs 1.79 lakh crore. A total of 3.98 lakh shares of the firm changed hands amounting to a turnover of Rs 18.23 crore on BSE. Vedanta shares have a one-year beta of 1.1, indicating high volatility during the period.
In terms of technicals, the relative strength index (RSI) of Vedanta stands at 58.2, signaling the stock is trading in the neither in the overbought nor in the oversold territory.
The stock fell to a 52 week low of Rs 207.85 on September 28, 2023.
Jigar S Patel, manager at Anand Rathi Secutirites said, "Support will be at Rs 445 and resistance at Rs 460. A decisive close above the Rs 460 level may trigger a further upside to Rs 475. The expected trading range will be between Rs 435 and Rs 475 for short-term."
Riyank Arora, technical analyst at Mehta Equities said, "Vedanta's stock is currently in a positive trend, with critical support identified at Rs 440 and resistance at Rs 470. If the stock price breaks below the Rs 440 support level, it may extend its decline towards the Rs 415-420 range. However, as long as the price remains above this support, the bullish momentum is expected to persist. This could potentially drive the stock towards higher targets in the Rs 475-490 range over time. Investors should monitor the Rs 440 level closely, as it plays a pivotal role in determining the stock's next move."
Manish Shah, independent market analyst said, "Vedanta price has seen a corrective decline and in last couple of weeks, it moved between Rs 460 and Rs 410. The price action in last couple of days shows that there is a possibility that the price is likely to move higher in next couple of months. The price breaks out of a falling trendline and a possible triple bottom trend reversal pattern. The price needs to break above 460 for a confirmed entry signal. This would open possibilities of a rally to 500 and beyond that to 550. The price is completing its corrective decline and should see a move higher in the weeks to come."
Kushal Gandhi, Technical Analyst, StoxBox said, "The price action of Vedanta has shifted into a broader sideways range after climbing over 100% from the lows in March 2024. This indicates sustained interest from astute investors, thereby restraining potential downturns. The Rs 400-405 zone has proven to be a robust demand area, with the price action experiencing a technical rebound after a retest. The stock has exhibited improving relative strength compared to the 50 index and has shown reduced volatility over the last 50 trading sessions, signaling a lower probability of sudden large movements, which is a positive indicator. As the stock is currently trending sideways, we recommend buying Vedanta with a target price of Rs 472 and maintaining a strict stop loss at Rs 429."
Mandar Bhojane, Equity Research Analyst at Choice Broking said, "The stock has recently broken out of a symmetrical triangle pattern on the daily chart. This breakout, accompanied by a significant increase in trading volume, indicates a strong bullish momentum. If the price sustains above the Rs 460 level, the stock has the potential to reach short-term targets of Rs 500 and Rs 550. On the downside, immediate support is located at Rs 445, which could be seen as a buying opportunity on dips. The Relative Strength Index (RSI) is currently at 60 and trending upward, reflecting increasing buying momentum. To manage risk effectively, it is advisable to set a stop-loss at Rs 430. This precaution will help protect your investment in case of an unexpected market reversal. Considering the technical analysis and current market conditions, Vedanta presents an appealing buying opportunity with a price target of Rs 500 and Rs 550, provided that appropriate risk management measures, such as a stop-loss at Rs 430, are in place."
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.